TCS Kicks Off Earnings Season With 29% Profit Surge; AI Portfolio Hits $1.8Bn Run Rate
TCS reported a consolidated net profit of ₹13,718 crore, a sharp 28.7% sequential recovery. Revenue for the quarter rose 5.4% QoQ to ₹70,698 crore, crossing the psychological ₹70k mark. The Board recommended a final dividend of ₹31 per share for FY26.
India’s largest IT services exporter, Tata Consultancy Services (TCS), reported a 28.7% jump in net profit for the fourth quarter that ended March 31, 2026. The results mark a recovery from the previous quarter’s dip, which was weighed down by legal settlements and labor code impacts.
It major posted a net profit of ₹13,718 crore, up from ₹10,657 crore in the December quarter. Consolidated revenue from operations grew 5.4% quarter-on-quarter to ₹70,698 crore, hence, surpassing street estimates that had pegged the figure closer to ₹69,500 crore.
Dividend and Shareholder Value
The TCS Board recommended a final dividend of ₹31 per equity share for the financial year 2025-26. This brings the total dividend for the year to a record high, following a series of interim and special dividends earlier in the fiscal year.
Despite a turbulent year marked by a 16% attrition rate at senior levels, TCS managed to keep its operating margins steady at 25.3%. The company attributed this to disciplined execution and cost-optimization strategies.
The highlight of the quarter was the growth of the company’s AI portfolio. Its AI-led business has reached an annualized run rate of $1.8 billion, hence growing over 17% in constant currency terms. This growth was bolstered by partnerships with OpenAI and ABB to deliver industry-specific agentic AI solutions.
TCS shares ended the day 1.18% higher at ₹2,589.95 on the BSE, outperforming the benchmark Sensex, which faced a cut of over 1% due to West Asian tensions. The strong Q4 showing will set a positive tone for the rest of the IT sector.
Published By : Shourya Jha
Published On: 9 April 2026 at 16:10 IST