Results Update - TCS beats estimates, announces final dividend of Rs 31

9 Apr 2026 , 04:53 PM

For Q4FY26, India’s largest IT services company, Tata Consultancy Services (TCS) Ltd., reported a performance ahead of expectations despite prevailing concerns around AI-led disruption and ongoing geopolitical tensions. The company reported revenue of ₹70,698 crore, registering a 5.4% increase over Q3FY26 and a 9.6% rise year-on-year. However, USD revenue growth stood at 2.1% YoY, reflecting the impact of currency volatility driven by global uncertainties, including tensions in the Middle East and tariff-related developments.

Operating income came in at ₹17,870 crore, up 5.8% QoQ and 14.5% YoY. The sharper expansion in operating income relative to revenue indicates improved operating leverage, supported by tighter cost structures and better utilization. EBITDA stood at ₹18,362 crore, increasing 3.1% sequentially and 11.9% annually. While sequential growth remained moderate, annual performance reflects stable margins and consistent execution. Net profit for the quarter was ₹13,718 crore, up 2.1% QoQ and 12.2% YoY, with the relatively lower sequential growth suggesting the impact of non-operating factors, including taxes.

Metric	Q4FY26 (₹ Cr)	Q3FY26 (₹ Cr)	Q4FY25 (₹ Cr)
Revenue	70,698	67,087	64,479
Operating Income	17,870	16,889	15,601
EBITDA	18,362	17,811	16,402
Net Income	13,718	13,438	12,224

For the full year FY26, revenue stood at ₹2,67,021 crore, up 4.6% YoY, while operating income, EBITDA, and net profit grew 7.5%, 7.7%, and 8.8%, respectively. The outperformance of profit growth over revenue indicates a continued focus on efficiency and margin protection rather than aggressive top-line expansion.

Metric	FY26 (₹ Cr)	FY25 (₹ Cr)
Revenue	2,67,021	2,55,324
Operating Income	66,838	62,165
EBITDA	70,355	65,331
Net Income	52,820	48,553

The demand environment remains supported by deal wins and client additions. The company reported an order book (TCV) of $12.0 billion, with strong contributions from North America ($5.4 billion), BFSI ($3.9 billion), and consumer business ($2.8 billion). Growth in large clients, particularly in the $100 million and $50 million categories, points to continued vendor consolidation in favor of established IT service providers.

Cash flow from operations stood at 106.7% of net profit, indicating strong earnings quality and efficient cash conversion. The board has proposed a final dividend of ₹31 per share for FY26, subject to shareholder approval at the annual general meeting. Total shareholder payout for the year stood at ₹39,571 crore, entirely through dividends, highlighting the company’s consistent capital return strategy.

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