<p>Backed by strong deal wins, and a falling rupee, the country's largest IT services firm <a href="https://www.deccanherald.com/tags/tata-consultancy-services">Tata Consultancy Services</a> (TCS) beat analysts' estimates and posted a 12.2% y-o-y increase in its consolidated net profit in March quarter at Rs 13,718 crore compared to Rs 12,224 crore in the year-ago period. For the full fiscal year FY26, the company posted Rs 49,210 crore net profit, a 1.3% increase compared to Rs 48,553 crore in FY25.</p>.<p>The company's revenue from operations in the fourth quarter of FY26 stood at Rs 70,698 crore, a 9.6% jump compared to Rs 64,479 crore. For the full fiscal year, the company posted Rs 2,67,021 crore revenue, a 4.6% growth, compared to Rs 2,55,324 crore in FY25.</p>.<p>The company's annualised AI revenue has crossed $2.3 billion in Q4FY26 and its FY26 operating margin stood at 25%, up 70 basis points y-o-y. This is the company's highest operating margin in the last four years.</p>.<p>The company also posted strong total contract value (TCV) at $40.7 billion for FY26 and $12 billion for Q4, with 3 mega deals for the quarter and 5 mega deals for the year.</p>.<p>K Krithivasan, Chief Executive Officer and Managing Director, said, the third consecutive quarter of sequential growth, supported by three mega deals and a $12 billion TCV, underscore the strength of our five pillar strategy and our AI led positioning across services.</p>.<p>"It is equally encouraging that this momentum was broad based across major markets and most industries. While the macro-economic headwinds continue, we see sustained customer conviction in technology investments, which positions us well for the opportunities ahead," he added.</p>.<p>"Our solid cash flow and resilient balance sheet position us to advance strategic priorities, pursue timely investments, and maximise growth," Samir Seksaria, Chief Financial Officer, said.</p>.<p>The company will also implement an annual salary increase across all grades effective April 1.</p>.<p>"In Q4, we continued to invest in a future‑ready workforce with strong additions across experienced talent and campus hires. Building an AI‑first culture and equipping our people with AI‑ready skills remained a key priority in FY26 and will continue into FY27, as we align closely with our customers’ evolving needs," Sudeep Kunnumal, Chief HR Officer, TCS, said.</p>.TCS Q3 profit falls 14% on labour code impact; AI revenue jumps to $1.8 billion.<p>As IT services firms in India bill in foreign currencies, rupee depreciation provides them support as they incur costs in rupees.</p>.<p>The company's BFSI vertical grew 0.4% y-o-y and consumer business grew 0.8% y-o-y. Revenue from its North American market grew by 2.5% y-o-y. The company's board of directors proposed a final dividend of Rs 31 per share.</p>.<p>TCS' total employee headcount stood at 5,84,519 in FY26, down over 23,000 employees compared to previous fiscal. For Q4FY26, its headcount increased by 2,356 employees. Last year, the company had reported layoffs of about 12,260. Analysts said aggregate net hiring at the industry level has been weak since FY22, mainly due to the prolonged moderation in demand outlook.</p>.<p>Commenting on TCS' q4 earnings, Shubham Rathore, Principal Analyst, Gartner said, "TCS’s robust performance this quarter, highlighted by a revenue of Rs 70,698 crore and a $12 billion total contract value, underscores its execution capabilities in a cautious market. The company’s expanding artificial intelligence engagements align closely with Gartner’s forecast that the artificial intelligence services market will grow by 34.0% in 2026. However, broader macroeconomic headwinds and the high initial abandonment rates of early-stage generative artificial intelligence projects remain significant hurdles for the wider information technology sector. Looking ahead to the next fiscal year, the industry's successful shift from isolated use-case experiments to enterprise-wide artificial intelligence integration and agentic workflows will be crucial. Service providers that effectively address ongoing client concerns regarding data readiness and workflow redesign will be best positioned to capture future technology spending."</p>
<p>Backed by strong deal wins, and a falling rupee, the country's largest IT services firm <a href="https://www.deccanherald.com/tags/tata-consultancy-services">Tata Consultancy Services</a> (TCS) beat analysts' estimates and posted a 12.2% y-o-y increase in its consolidated net profit in March quarter at Rs 13,718 crore compared to Rs 12,224 crore in the year-ago period. For the full fiscal year FY26, the company posted Rs 49,210 crore net profit, a 1.3% increase compared to Rs 48,553 crore in FY25.</p>.<p>The company's revenue from operations in the fourth quarter of FY26 stood at Rs 70,698 crore, a 9.6% jump compared to Rs 64,479 crore. For the full fiscal year, the company posted Rs 2,67,021 crore revenue, a 4.6% growth, compared to Rs 2,55,324 crore in FY25.</p>.<p>The company's annualised AI revenue has crossed $2.3 billion in Q4FY26 and its FY26 operating margin stood at 25%, up 70 basis points y-o-y. This is the company's highest operating margin in the last four years.</p>.<p>The company also posted strong total contract value (TCV) at $40.7 billion for FY26 and $12 billion for Q4, with 3 mega deals for the quarter and 5 mega deals for the year.</p>.<p>K Krithivasan, Chief Executive Officer and Managing Director, said, the third consecutive quarter of sequential growth, supported by three mega deals and a $12 billion TCV, underscore the strength of our five pillar strategy and our AI led positioning across services.</p>.<p>"It is equally encouraging that this momentum was broad based across major markets and most industries. While the macro-economic headwinds continue, we see sustained customer conviction in technology investments, which positions us well for the opportunities ahead," he added.</p>.<p>"Our solid cash flow and resilient balance sheet position us to advance strategic priorities, pursue timely investments, and maximise growth," Samir Seksaria, Chief Financial Officer, said.</p>.<p>The company will also implement an annual salary increase across all grades effective April 1.</p>.<p>"In Q4, we continued to invest in a future‑ready workforce with strong additions across experienced talent and campus hires. Building an AI‑first culture and equipping our people with AI‑ready skills remained a key priority in FY26 and will continue into FY27, as we align closely with our customers’ evolving needs," Sudeep Kunnumal, Chief HR Officer, TCS, said.</p>.TCS Q3 profit falls 14% on labour code impact; AI revenue jumps to $1.8 billion.<p>As IT services firms in India bill in foreign currencies, rupee depreciation provides them support as they incur costs in rupees.</p>.<p>The company's BFSI vertical grew 0.4% y-o-y and consumer business grew 0.8% y-o-y. Revenue from its North American market grew by 2.5% y-o-y. The company's board of directors proposed a final dividend of Rs 31 per share.</p>.<p>TCS' total employee headcount stood at 5,84,519 in FY26, down over 23,000 employees compared to previous fiscal. For Q4FY26, its headcount increased by 2,356 employees. Last year, the company had reported layoffs of about 12,260. Analysts said aggregate net hiring at the industry level has been weak since FY22, mainly due to the prolonged moderation in demand outlook.</p>.<p>Commenting on TCS' q4 earnings, Shubham Rathore, Principal Analyst, Gartner said, "TCS’s robust performance this quarter, highlighted by a revenue of Rs 70,698 crore and a $12 billion total contract value, underscores its execution capabilities in a cautious market. The company’s expanding artificial intelligence engagements align closely with Gartner’s forecast that the artificial intelligence services market will grow by 34.0% in 2026. However, broader macroeconomic headwinds and the high initial abandonment rates of early-stage generative artificial intelligence projects remain significant hurdles for the wider information technology sector. Looking ahead to the next fiscal year, the industry's successful shift from isolated use-case experiments to enterprise-wide artificial intelligence integration and agentic workflows will be crucial. Service providers that effectively address ongoing client concerns regarding data readiness and workflow redesign will be best positioned to capture future technology spending."</p>