US Supreme Court denied Indian IT services firm Tata Consultancy Services’ (TCS) petition to review an earlier judgement in a trade secret case penalising the company with a hefty fine of $194 million in damages.

“We wish to inform you that the United States Supreme Court has denied our petition for a writ of certiorari to review the judgment of the United States Court of Appeals for the Fifth Circuit on June 15, 2026, in the above matter. The Company has already provided $150 million in relation to this matter in the books of accounts in accordance with applicable accounting standards and will make necessary provision now for the incremental amount of $70 million towards damages, interest and legal cost, as a one-time exceptional expense, in Q1 FY2027,” said the company as per an exchange filing, bringing the total expense to around $220 million.

Considering TCS’s annual profits, the financial impact of the case will be low single-digit percentage hit but the cash outflow will be material in absolute rupee terms. As per its annual filing, profit stood at ₹49,454 crore in FY26.

The case in question was a trade-secret lawsuit TCS and US-based Computer Sciences Corporation (CSC), now part of DXC Technology. In 2024, DXC accused TCS of misappropriating its trade secrets to win a $2.6 billion contract with Transamerica and develop its own software platform BaNCS. The District court had ruled in favour of DXC, asking TCS to pay around $56 million in compensatory damages, around $112 million in exemplary damages and around $25 million prejudgment interest. At the time, TCS had claimed “strong arguments against the Judgement” and initiated an appeal in the US court.

Published on June 16, 2026