New Delhi, Apr 10 : Tata Consultancy Services (TCS) reported a robust fourth-quarter performance, with net profit rising 12% year on year to ₹13,718 crore and revenue increasing 9.6% to ₹70,698 crore. On a sequential basis, profit surged 19.4% while revenue grew 5.4%, signalling a recovery after a period of subdued growth.
The results were largely in line with market expectations, supported by favourable currency movements and significant deal closures. The company also recorded its highest margins in four years, reflecting strong operational discipline.
However, for the full financial year FY26, TCS registered a 2.4% decline in revenue in constant currency terms its first annual drop since listing. Despite this, revenue in rupee terms rose 4.6% to ₹2,67,021 crore, while dollar revenue stood at $30.02 billion.
CEO K Krithivasan expressed optimism for the coming year, citing strong deal pipelines and sustained demand for technology investments, though he flagged potential risks arising from geopolitical tensions in West Asia.
Artificial intelligence emerged as a major growth driver, with AI services revenue climbing to $2.3 billion in the March quarter. The company secured key partnerships with firms like OpenAI, AMD, and ABB to build advanced data centre capabilities.
TCS also reported record deal wins, with total contract value (TCV) reaching $12 billion in Q4 and $40.7 billion for the full year, indicating strong future revenue visibility.
Despite positive earnings, shares of industry peers Infosys and Wipro declined in US trading, reflecting cautious investor sentiment.
The company’s workforce stood at 584,519 employees at the end of the quarter, showing a decline compared to last year following restructuring efforts, although hiring picked up sequentially.
Sector-wise, growth was led by energy and utilities, while BFSI the largest segment remained largely flat. Regionally, North America continued to dominate revenue share, while the UK showed the strongest growth among key markets.
Looking ahead, TCS expects continued traction in AI-led transformation deals, even as global macroeconomic challenges persist.