TCS Q4 Profit Rises 29% QoQ to ₹13,718 Cr, Revenue Grows 5.4%

Tata Consultancy Services reported a strong set of results for the March quarter, supported by steady deal momentum and growing demand for AI-led services.

The company posted a consolidated net profit of ₹13,718 crore in Q4 FY26, marking a 29% jump on a sequential basis. Revenue from operations rose 5.4% quarter-on-quarter (QoQ) to ₹70,698 crore, reflecting resilient demand across key markets and verticals.

Margins remained stable during the quarter, with operating margin at 25.3%, expanding 10 basis points sequentially, excluding one-offs. Net margin stood at 19.4%, indicating consistent profitability despite macroeconomic uncertainties.

The board has proposed a final dividend of ₹31 per share for FY26, taking total shareholder payout for the year to ₹39,571 crore.

TCS also maintained strong cash flow generation, with operating cash flow at 106.7% of net income, highlighting efficient execution and healthy cash conversion.

Deal Wins, AI Growth Drive Momentum

The company reported total contract value (TCV) of $12 billion for the quarter, including three mega deals, taking FY26 TCV to $40.7 billion. This marks the third consecutive quarter of sequential growth, signalling improving business momentum.

Growth during the quarter was led by the Energy, Resources and Utilities segment, which expanded 6.1% sequentially in constant currency terms, followed by consumer business growth of 2.8%.

Among geographies, the UK emerged as the top performer with a 2.4% sequential increase, while North America recorded a 1.4% rise in constant currency terms.

TCS also highlighted strong traction in artificial intelligence-led business, with annualised AI revenue crossing $2.3 billion in Q4, driven by increasing enterprise adoption of AI solutions.

CEO K Krithivasan said the company’s growth was supported by strong deal wins and broad-based demand across industries, despite global uncertainties, adding that continued investments in technology position TCS well for future growth.

The company strengthened its AI capabilities through collaborations with global technology players such as OpenAI, AMD, Nvidia, Cisco and ServiceNow.

For the full year FY26, TCS reported revenue of ₹2.67 lakh crore, up 4.6% year-on-year, while operating margin improved to 25% and net margin to 19.8%, the highest levels in the last four years.

Shares of TCS rose 1.16% to close at ₹2,589 on the National Stock Exchange ahead of the results, outperforming the broader market.