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Tata Consultancy Services (TCS) net profit grew 12 per cent to ₹13,784 crore for the fourth quarter of the financial year 2025-26, led by revenue growth and larger order bookings. Net profit increased by 28.5 per cent on a sequential basis, owing to one-off expenses in the previous quarter.

K Krithivasan, Chief Executive Officer and Managing Director, said, “We are pleased to report the third consecutive quarter of sequential growth, supported by three mega deals and a $12-billion TCV. 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.”

Revenue grew 9.6 per cent to ₹70,698 crore annually, and 5.3 per cent on a quarterly basis. Overall, FY26 reported around 2.4 per cent annual decline, the company’s first revenue decline since going public, as per Phil Fresht, Founder and CEO, HFS Research. Further, annualized AI revenues surpassed $2.3 billion, driven by accelerated deployment of AI solutions. During its analyst call, management estimated AI revenues to grow and make-up for potential reductions in traditions revenue segments. Forex was a key uptick, with exchange difference on translation of foreign currency cash and cash equivalents going from ₹174 crore in Q4FY25 to ₹959 crore in Q4FY26.

Total contract value (TCV) increased by 29 per cent to 12 billion, winning three mega-deals in Q4. Operating margin remained stable at 25.3 per cent.

Salary hike in April

TCS announced annual salary increases across all grades effective April 1, with top performers getting double digit increases.

Sudeep Kunnumal, Chief HR Officer, said, “We are pleased to implement annual salary increases across all grades effective April 1. In Q4, we continued to invest in a future-ready workforce with strong additions across experienced talent and campus hires.”

The workforce grew by 2,356 employees to a strength of 584,519 employees, a sequential growth of 0.4 per cent. The company reported a ‘Voluntary’ LTM attrition of 13.7 per cent.

Regional markets

In Q4, regional markets fell by 0.6 per cent on-year and grew 1.2 per cent sequentially. The Indian market reported a 23 per cent annual decline, with a 1.7 per cent sequential growth. Latin America dropped 2.9 per cent annually, and 6.9 per cent sequentially. Meanwhile, the UK market fell 1.2 per cent annually and grew 2.4 per cent sequentially. West Asia and Africa, too, grew 7.8 per cent annually and 0.4 per cent sequentially. Aside from regional markets, the BFSI, consumer business and life sciences and healthcare verticals continue to lead growth.

When asked about recent conflicts in the Middle East region, Krithivasan said no disruption beyond travel and transport restriction but spoke of potential impact in case of supply chain disruption.

BFSI vertical led growth tdespite concerns around macro and geopolitical volatility, increased uncertainty around interest rates, inflation, caustious investments owing to central bank actions influence. Clients prioritised core and legacy modernization, cloud migration, and vendor consulting among other things, said the CEO.

“Spending patterns increasingly shifted from experimentation to industrialized business-driven transformation with the strong emphasis on cost discipline, regulatory resilience, and measurable outcomes,” said Krithivasan.

Data centre demand

On its HyperVault data centre ambitions, management reported significant engagement across the full ecosystem of hyperscaler, semiconductor companies and model providers. Engagements have moved beyond early exploration into design alignment, security framework and commercial structuring.

“We see the demand converging around large Anchor AI workflows in the 100-200 MW range per customer, said Aarthi Subramanian, Executive Director - President and Chief Operating Officer, flagging strong deal momentum across new services in Enterprise Transformation, Digital Engineering, and Cloud Modernization.

Published on April 9, 2026