Results     10-Apr-26
Analysis
Tata Consultancy Services
Revenue up 9.6% YoY to Rs 70698 crore in Q4FY2026
On consolidated basis

Quarter ended March 2026 compared with Quarter ended December 2025.

Net sales (including other operating income) of Tata Consultancy Services has increased 5.38% to Rs 70698 crore.  

Operating profit margin has jumped from 27.23% to 27.27%, leading to 5.51% rise in operating profit to Rs 19,276.00 crore.  Employee cost decreased from 57.43% to 56.78%.   Other expenses rose from 15.34% to 15.95%.   Software technology development services cost rose from 1.88% to 2.04%.   

Other income fell 32.29% to Rs 757 crore.  PBIDT rose 3.33% to Rs 20033 crore.  Provision for interest fell 50.74% to Rs 265 crore.  Loan funds remained nil.  

PBDT rose 4.88% to Rs 19768 crore.  Provision for depreciation rose 1.88% to Rs 1406 crore.  

Profit before tax grew 5.11% to Rs 18,362.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 4578 crore, compared to Rs 3358 crore.  Effective tax rate was 24.93% compared to 23.85%.

Minority interest increased 4.76% to Rs 66.00 crore.  Net profit attributable to owners of the company increased 28.72% to Rs 13,718.00 crore.  

Promoters’ stake was 71.77% as of 31 March 2026 ,compared to 71.77% as of 31 December 2025 .  

  • Quarter ended March 2026 compared with Quarter ended March 2025.

    Net sales (including other operating income) of Tata Consultancy Services has increased 9.65% to Rs 70698 crore.  Sales of Banking Finance Insurance segment has gone up 11.39% to Rs 27,021.00 crore (accounting for 38.22% of total sales).  Sales of Manufacturing segment has gone up 9.49% to Rs 7,002.00 crore (accounting for 9.90% of total sales).  Sales of Communication, Media and Technology segment has gone down 6.24% to Rs 10,334.00 crore (accounting for 14.62% of total sales).  Sales of Others segment has gone up 23.62% to Rs 7,625.00 crore (accounting for 10.79% of total sales).  Sales of Retail and Consumer Packing Goods segment has gone up 11.82% to Rs 11,345.00 crore (accounting for 16.05% of total sales).  Sales of Life Sciences and Healthcare segment has gone up 13.56% to Rs 7,371.00 crore (accounting for 10.43% of total sales).  

    Profit before interest, tax and other unallocable items (PBIT) has jumped 13.53% to Rs 19,276.00 crore.  PBIT of Banking Finance Insurance segment rose 11.64% to Rs 7,117.00 crore (accounting for 36.92% of total PBIT).  PBIT of Manufacturing segment rose 4.58% to Rs 2,122.00 crore (accounting for 11.01% of total PBIT).  PBIT of Communication, Media and Technology segment rose 29.29% to Rs 3,072.00 crore (accounting for 15.94% of total PBIT).  PBIT of Others segment fell 0.25% to Rs 1,575.00 crore (accounting for 8.17% of total PBIT).  PBIT of Retail and Consumer Packing Goods segment rose 13.83% to Rs 3,334.00 crore (accounting for 17.30% of total PBIT).  PBIT of Life Sciences and Healthcare segment rose 21.58% to Rs 2,056.00 crore (accounting for 10.67% of total PBIT).  

    PBIT margin of Banking Finance Insurance segment rose from 26.28% to 26.34%.  PBIT margin of Manufacturing segment fell from 31.73% to 30.31%.  PBIT margin of Communication, Media and Technology segment rose from 21.56% to 29.73%.  PBIT margin of Others segment fell from 25.60% to 20.66%.  PBIT margin of Retail and Consumer Packing Goods segment rose from 28.87% to 29.39%.  PBIT margin of Life Sciences and Healthcare segment rose from 26.05% to 27.89%.  Overall PBIT margin rose from 26.33% to 27.27%.  

    Operating profit margin has jumped from 26.33% to 27.27%, leading to 13.52% rise in operating profit to Rs 19,276.00 crore.  Employee cost decreased from 57.01% to 56.78%.   Other expenses fell from 16.65% to 15.95%.   Software technology development services cost fell from 4.26% to 2.04%.   

    Other income fell 26.36% to Rs 757 crore.  PBIDT rose 11.25% to Rs 20033 crore.  Provision for interest rose 16.74% to Rs 265 crore.  Loan funds rose to Rs 11,283.00 crore as of 31 March 2026 from Rs 9,392.00 crore as of 31 March 2025.  Inventories rose to Rs 29.00 crore as of 31 March 2026 from Rs 21.00 crore as of 31 March 2025.  Sundry debtors were higher at Rs 57,630.00 crore as of 31 March 2026 compared to Rs 50,142.00 crore as of 31 March 2025.  Cash and bank balance declined from Rs 15,463.00 crore as of 31 March 2025 to Rs 12,908.00 crore as of 31 March 2026.  Investments rose to Rs 33,988.00 crore as of 31 March 2026 from Rs 30,964.00 crore as of 31 March 2025 .  

    PBDT rose 11.17% to Rs 19768 crore.  Provision for depreciation rose 1.96% to Rs 1406 crore.  Fixed assets increased to Rs 24,900.00 crore as of 31 March 2026 from Rs 22,739.00 crore as of 31 March 2025.  Intangible assets increased from Rs 1,860.00 crore to Rs 9,108.00 crore.  

    Profit before tax grew 11.95% to Rs 18,362.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 4578 crore, compared to Rs 4109 crore.  Effective tax rate was 24.93% compared to 25.05%.

    Minority interest decreased 4.35% to Rs 66.00 crore.  Net profit attributable to owners of the company increased 12.22% to Rs 13,718.00 crore.  

    Equity capital stood at Rs 362.00 crore as of 31 March 2026 to Rs 362.00 crore as of 31 March 2025.  Per share face Value remained same at Rs 1.00.  

    Promoters’ stake was 71.77% as of 31 March 2026 ,compared to 71.77% as of 31 March 2025 .  


    Full year results analysis.

    Net sales (including other operating income) of Tata Consultancy Services has increased 4.58% to Rs 267021 crore.  Sales of Banking Finance Insurance segment has gone up 9.27% to Rs 103,363.00 crore (accounting for 38.71% of total sales).  Sales of Manufacturing segment has gone up 5.74% to Rs 26,614.00 crore (accounting for 9.97% of total sales).  Sales of Communication, Media and Technology segment has gone down 13.99% to Rs 39,474.00 crore (accounting for 14.78% of total sales).  Sales of Others segment has gone up 19.04% to Rs 27,393.00 crore (accounting for 10.26% of total sales).  Sales of Retail and Consumer Packing Goods segment has gone up 5.56% to Rs 42,432.00 crore (accounting for 15.89% of total sales).  Sales of Life Sciences and Healthcare segment has gone up 4.87% to Rs 27,745.00 crore (accounting for 10.39% of total sales).  

    Profit before interest, tax and other unallocable items (PBIT) has jumped 7.40% to Rs 72,398.00 crore.  PBIT of Banking Finance Insurance segment rose 7.46% to Rs 27,011.00 crore (accounting for 37.31% of total PBIT).  PBIT of Manufacturing segment fell 2.12% to Rs 8,051.00 crore (accounting for 11.12% of total PBIT).  PBIT of Communication, Media and Technology segment rose 19.73% to Rs 11,473.00 crore (accounting for 15.85% of total PBIT).  PBIT of Others segment rose 8.18% to Rs 6,269.00 crore (accounting for 8.66% of total PBIT).  PBIT of Retail and Consumer Packing Goods segment rose 7.73% to Rs 12,090.00 crore (accounting for 16.70% of total PBIT).  PBIT of Life Sciences and Healthcare segment rose 0.75% to Rs 7,504.00 crore (accounting for 10.36% of total PBIT).  

    PBIT margin of Banking Finance Insurance segment fell from 26.57% to 26.13%.  PBIT margin of Manufacturing segment fell from 32.68% to 30.25%.  PBIT margin of Communication, Media and Technology segment rose from 20.88% to 29.06%.  PBIT margin of Others segment fell from 25.18% to 22.89%.  PBIT margin of Retail and Consumer Packing Goods segment rose from 27.92% to 28.49%.  PBIT margin of Life Sciences and Healthcare segment fell from 28.15% to 27.05%.  Overall PBIT margin rose from 26.40% to 27.11%.  

    Operating profit margin has jumped from 26.40% to 27.11%, leading to 7.40% rise in operating profit to Rs 72,398.00 crore.  Employee cost increased from 57.10% to 58.05%.   Other expenses fell from 16.50% to 14.84%.   Software technology development services cost fell from 4.56% to 1.65%.   

    Other income rose 11.11% to Rs 4402 crore.  PBIDT rose 7.61% to Rs 76800 crore.  Provision for interest rose 54.15% to Rs 1227 crore.  Loan funds rose to Rs 11,283.00 crore as of 31 March 2026 from Rs 9,392.00 crore as of 31 March 2025.  Inventories rose to Rs 29.00 crore as of 31 March 2026 from Rs 21.00 crore as of 31 March 2025.  Sundry debtors were higher at Rs 57,630.00 crore as of 31 March 2026 compared to Rs 50,142.00 crore as of 31 March 2025.  Cash and bank balance declined from Rs 15,463.00 crore as of 31 March 2025 to Rs 12,908.00 crore as of 31 March 2026.  Investments rose to Rs 33,988.00 crore as of 31 March 2026 from Rs 30,964.00 crore as of 31 March 2025 .  

    PBDT rose 7.08% to Rs 75573 crore.  Provision for depreciation rose 6.07% to Rs 5560 crore.  Fixed assets increased to Rs 24,900.00 crore as of 31 March 2026 from Rs 22,739.00 crore as of 31 March 2025.  Intangible assets increased from Rs 1,860.00 crore to Rs 9,108.00 crore.  

    Profit before tax grew 7.17% to Rs 70,013.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 16033 crore, compared to Rs 16534 crore.  Effective tax rate was 24.48% compared to 25.31%.

    Net profit attributable to owners of the company increased 1.35% to Rs 49,210.00 crore.  

    Equity capital stood at Rs 362.00 crore as of 31 March 2026 to Rs 362.00 crore as of 31 March 2025.  Per share face Value remained same at Rs 1.00.  

    Promoters’ stake was 71.77% as of 31 March 2026 ,compared to 71.77% as of 31 March 2025 .  

    Cash flow from operating activities increased to Rs 52,094.00 crore for year ended March 2026 from Rs 48,908.00 crore for year ended March 2025.  Cash flow used in acquiring fixed assets during the year ended March 2026 stood at Rs 4,187.00 crore, compared to Rs 3,937.00 crore during the year ended March 2025.  

    Dividend: The board has recommended a final dividend of Rs 31 per share, taking the total dividend to Rs 110 for FY26.

     

    Management commentary:

    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, underscoring the strength of our five pillar strategy and our AI led positioning across services. 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.”

    Aarthi Subramanian, Executive Director - President and Chief Operating Officer, said "FY26 marked a pivotal year for enterprise AI adoption. In Q4, our annualized AI revenues surpassed $2.3 billion, driven by the accelerated deployment of AI solutions. We experienced strong deal momentum across new services in Enterprise Transformation, Digital Engineering, and Cloud Modernization. Our investment in HyperVault was a catalyst in forging strategic partnerships with OpenAI, AMD and ABB, further strengthening our positioning across Infrastructure-to-Intelligence.”

    Samir Seksaria, Chief Financial Officer, said, “In FY26, we intensified investments through our Build–Partner–Acquire approach, by acquiring Coastal Cloud & List Engage and establishing HyperVault. Even as we scaled our investments in AI-led growth opportunities, our margins expanded by 70 basis points, reflecting our strong operational rigor. Our solid cash flow and resilient balance sheet position us to advance strategic priorities, pursue timely investments, and maximize growth.”

    Sudeep Kunnumal, Chief HR Officer, said “We are pleased to implement annual salary increases across all grades effective 1st April. 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.”

    Tata Consultancy Services : Consolidated Results
     Quarter endedYear ended
    Particulars202603202503Var.(%)202603202503Var.(%)
    Net Sales (including other operating income)70,698.0064,479.009.65267,021.00255,324.004.58
    OPM (%)27.2726.3393 bps27.1126.4071 bps
    OP19,276.0016,980.0013.5272,398.0067,407.007.40
    Other Inc.757.001,028.00-26.364,402.003,962.0011.11
    PBIDT20,033.0018,008.0011.2576,800.0071,369.007.61
    Interest265.00227.0016.741,227.00796.0054.15
    PBDT19,768.0017,781.0011.1775,573.0070,573.007.08
    Depreciation140613791.96556052426.07
    PBT18,362.0016,402.0011.9570013653317.17
    Share of Profit/(Loss) from Associates00-00-
    PBT before EO183621640211.9570013653317.17
    EO Income00--45260-
    PBT after EO183621640211.9565487653310.24
    Taxation4578410911.411603316534-3.03
    PAT137841229312.1349454487971.35
    Minority Interest (MI)6669-4.352442440
    Net profit137181222412.2249210485531.35
    P/(L) from discontinued operations net of tax00-00-
    Net profit after discontinued operations137181222412.2249210485531.35
    EPS (Rs)*37.9233.7912.22145.41134.208.36
    * EPS is on current equity of Rs 361.81 crore, Face value of Rs 1, Excluding extraordinary items.
    # EPS is not annualised
    bps : Basis points
    EO : Extraordinary items
    Figures in Rs crore
    Source: Capitaline Corporate Database


    Tata Consultancy Services : Consolidated Segment Results
     Quarter endedYear ended
    % of (Total)202603202503Var.(%)% of (Total)202603202503Var.(%)
    Sales
    Banking Finance Insurance38.2227,021.0024,257.0011.3938.71103,363.0094,597.009.27
    Manufacturing9.907,002.006,395.009.499.9726,614.0025,170.005.74
    Retail and Distribution0.000.000.00-
    Communication, Media and Technology14.6210,334.0011,022.00-6.2414.7839,474.0045,893.00-13.99
    Others10.797,625.006,168.0023.6210.2627,393.0023,011.0019.04
    Retail and Consumer Packing Goods16.0511,345.0010,146.0011.8215.8942,432.0040,197.005.56
    Life Sciences and Healthcare10.437,371.006,491.0013.5610.3927,745.0026,456.004.87
    Total Reported Sales100.0070,698.0064,479.009.65100.00267,021.00255,324.004.58
    Less: Inter segment revenues 0.000.00- 0.000.00-
    Net Sales100.0070,698.0064,479.009.65100.00267,021.00255,324.004.58
    PBIT
    Banking Finance Insurance36.927,117.006,375.0011.6437.3127,011.0025,135.007.46
    Manufacturing11.012,122.002,029.004.5811.128,051.008,225.00-2.12
    Retail and Distribution0.000.000.00-
    Communication, Media and Technology15.943,072.002,376.0029.2915.8511,473.009,582.0019.73
    Others8.171,575.001,579.00-0.258.666,269.005,795.008.18
    Retail and Consumer Packing Goods17.303,334.002,929.0013.8316.7012,090.0011,222.007.73
    Life Sciences and Healthcare10.672,056.001,691.0021.5810.367,504.007,448.000.75
    Total PBIT100.0019,276.0016,979.0013.53100.0072,398.0067,407.007.40
    Less : Interest0.000.00-0.000.00-
    Add: Other un-allcoable-914.00-577.00-58.41-6,911.00-2,076.00-232.90
    PBIT Margin(%)
    Banking Finance Insurance 26.3426.285.77 26.1326.57-43.84
    Manufacturing 30.3131.73-142.23 30.2532.68-242.68
    Retail and Distribution 0.000.000.00
    Communication, Media and Technology 29.7321.56817.02 29.0620.88818.57
    Others 20.6625.60-494.41 22.8925.18-229.82
    Retail and Consumer Packing Goods 29.3928.8751.89 28.4927.9257.51
    Life Sciences and Healthcare 27.8926.05184.16 27.0528.15-110.61
    PBT100.0018,362.0016,402.0011.95100.0065,487.0065,331.000.24
  • Previous News
      Tata Consultancy Services to conduct AGM
     ( Corporate News - 06-May-26   11:22 )
      TCS partners with Australian Securities Exchange
     ( Corporate News - 28-Apr-26   20:05 )
      Tata Consultancy Services
     ( Results - Analysis 10-Apr-26   06:02 )
      Nifty April futures trade at premium
     ( Market Commentary - Futures Market 10-Apr-26   16:33 )
      Tata Consultancy Services
     ( Analyst Meet / AGM - Conference Call 10-Apr-26   05:50 )
      TCS clocks PAT of Rs 13,718 crore in Q4; board OKs dividend of Rs 31/share for FY26
     ( Hot Pursuit - 09-Apr-26   17:14 )
      Nifty April futures trade at premium
     ( Market Commentary - Futures Market 09-Apr-26   16:25 )
      Tata Consultancy Services consolidated net profit rises 12.22% in the March 2026 quarter
     ( Results - Announcements 09-Apr-26   16:23 )
      Board of Tata Consultancy Services recommends final dividend
     ( Corporate News - 09-Apr-26   16:21 )
      Tata Consultancy Services Ltd up for five straight sessions
     ( Hot Pursuit - 08-Apr-26   13:00 )
      Nifty March futures trade at premium
     ( Market Commentary - Futures Market 25-Mar-26   16:16 )
    Other Stories
      Aurionpro Solutions
      12-May-26   05:41
      Privi Speciality Chemicals
      11-May-26   18:10
      NDR Auto Components
      11-May-26   15:53
      Birla Corporation
      10-May-26   05:21
      Affle 3i
      10-May-26   05:17
      Biocon
      09-May-26   15:00
      Titan Company
      09-May-26   14:38
      Bank of India
      09-May-26   13:08
      State Bank of India
      09-May-26   08:59
      Bank of Baroda
      09-May-26   08:30
    Back Top