TCS delivers resilient Q4
Q4 profit jumps 12% to `13,718 crore| Headcount rises after two quarters; margins hit 4-year high | AI drives growth as macro headwinds persist
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Bengaluru: Tata Consultancy Services (TCS) on Thursday kicked off the IT earnings season with a largely in-line performance for the fourth quarter of FY26, marked by steady profit growth, margin expan-sion, and a strong deal pipeline.
The company reported a consolidated net profit of ₹13,718 crore for Q4FY26, up 12.2 per cent year-on-year. Revenue rose 9.6 per cent YoY to ₹70,698 crore. In dollar terms, revenue stood at $7.62 billion, reflecting a 1.2 per cent sequential rise in constant currency.
Operating margins improved to 25.3 per cent for the March quarter, up 10 basis points sequential-ly, aided by the depreciation of the rupee against the dollar.
“We are pleased to report the third consecutive quarter of sequential growth, supported by three mega deals and a $12 billion TCV. Momentum was broad-based across markets and industries,” said K Krithivasan, CEO.
For FY26, TCS posted a net profit of ₹49,210 crore, up 1.4 per cent YoY, while revenue grew 4.6 per cent to ₹2,67,021 crore.
However, in constant currency terms, annual revenue declined 2.4 per cent to $30.01 billion, re-flecting macroeconomic headwinds.
Excluding one-offs, operating margin for FY26 stood at 25 per cent, up 70 basis points YoY — the highest in four years. The company reported a robust deal pipeline, with total contract value (TCV) at $40.7 billion for FY26 and $12 billion for Q4, including three mega deals during the quarter.
“FY26 marked a pivotal year for enterprise AI adoption, with annualised AI revenues crossing $2.3 billion,” said Aarthi Subramanian, COO. Geographically, the US and UK markets recorded sequential growth of 1.4 per cent and 2.4 per cent, respectively.
TCS added 2,356 employees during the quarter, taking total headcount to 5.84 lakh, reversing two consecutive quarters of decline. “We continue to invest in a future-ready workforce while imple-menting annual salary increases from April 1,” said Sudeep Kunnumal.
