TCS Q4FY26 Results: Profit rises 12% YoY to Rs 13,784 crore; board announces Rs 31 dividend

TCS Q4FY26 Results: Tata Consultancy Services reported a 12.2 per cent year-on-year rise in net profit for the March quarter, with earnings coming in slightly ahead of estimates, while revenue growth remained steady.

Net profit for Q4FY26 stood at Rs 13,718 crore, compared with Rs 12,224 crore a year ago. Revenue from operations rose 9.6 per cent YoY to Rs 70,698 crore.

On a sequential basis, the company’s performance remained firm. Profit jumped 28.7 per cent quarter-on-quarter, while revenue grew 5.4 per cent, marking the third straight quarter of sequential growth. In constant currency terms, revenue was up 1.2 per cent QoQ.

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Also read: 3100% Dividend: TCS announces cash payout with Q4 results; check payment schedule

In line on revenue, beat on profit

TCS’s numbers were largely in line with expectations on the top line, with a modest beat on the bottom line.

Zee Business had pegged revenue at Rs 70,222 crore and profit at Rs 13,631 crore. The company reported revenue of Rs 70,698 crore and profit of Rs 13,718 crore, coming slightly ahead on both counts.

However, the operating performance was mixed. EBIT came in at Rs 15,601 crore, lower than the estimated Rs 17,639 crore. Margins, on the other hand, held steady, with operating margin at 25.3 per cent, marginally above the estimated 25.19 per cent.

Deal momentum remains strong

Chief Executive Officer and Managing Director K Krithivasan highlighted continued deal traction and improving momentum.

“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.”

The company reported three mega deals during the quarter, taking total contract value (TCV) to $12 billion, reflecting strong client engagement despite a cautious macro environment.

Margins steady despite pressure

While operating income declined 7.6 per cent sequentially, margins remained stable, inching up 10 basis points QoQ to 25.3 per cent, excluding one-offs. The numbers suggest the company is managing costs even as growth remains gradual.

TCS headcount: Announces salary hikes

IT major reported a decline in its total employee base for FY26, even as it continued to invest in talent development and AI-led skills while announcing salary hikes and maintaining hiring momentum in the March quarter.

The company said its employee base increased by 2,356 during the January-March quarter, taking the overall headcount to 5,84,519 as on March 31, 2026. However, on a year-on-year basis, the workforce declined, with headcount standing at 584,519 at the end of Q4 FY26 compared with 607,979 in Q4 FY25, marking a net reduction of 23,460 employees.

On a sequential basis, the workforce trend remained mixed through FY26. Headcount rose to 613,069 in Q1 FY26 from 607,979 in the preceding quarter, but declined thereafter to 593,314 in Q2 and further to 582,163 in Q3. The company then reported a marginal increase in Q4, indicating a partial stabilisation in hiring.

Voluntary attrition in IT services stood at 13.7 per cent on a last twelve months (LTM) basis. Women employees accounted for 35.2 per cent of the total workforce, while the company said it has employees representing 149 nationalities.