Mumbai: Tata Consultancy Services (TCS) reported a 12.2 percent year-on-year rise in consolidated net profit to Rs 13,718 crore in Q4 FY26, while revenue increased to Rs 70,698 crore. Sequentially, profit rose from Rs 13,438 crore in Q3 FY26, reflecting continued quarterly momentum. Revenue also improved from Rs 67,087 crore in Q3 and Rs 64,479 crore in Q4 FY25, indicating steady growth despite macroeconomic headwinds.
Strong quarterly performance
TCS posted steady growth in Q4 FY26 with revenue rising 5.4 percent quarter-on-quarter and 9.6 percent year-on-year. Net profit increased modestly by 2.1 percent sequentially, while showing double-digit annual growth. Profit before tax stood at Rs 18,362 crore, compared to Rs 17,811 crore in the previous quarter and Rs 16,402 crore a year ago, supported by consistent revenue expansion and controlled cost growth.
Sequential growth builds
Sequential improvement was driven by revenue expansion of Rs 3,611 crore over Q3 (Rs 70,698 crore – Rs 67,087 crore), translating to 5.4 percent growth. Total expenditure rose to Rs 52,828 crore from Rs 50,198 crore in Q3, reflecting higher employee and operating costs. Despite rising expenses, operating leverage supported profit growth, while EPS increased to Rs 37.92 from Rs 37.14 in the previous quarter.
Margin and operational highlights
Operating income rose to Rs 17,870 crore from Rs 16,889 crore in Q3, while net margins remained stable. The company reported operating margin of 25.3 percent and net margin of 19.4 percent for the quarter, reflecting efficiency despite cost pressures. Growth was supported by strong deal wins and continued demand across key markets, including North America and the UK.
Full-year performance
For FY26, TCS reported revenue of Rs 267,021 crore, up 4.6 percent year-on-year, while net profit increased to Rs 52,820 crore from Rs 48,553 crore in FY25. The company maintained margin expansion, with operating margin improving to 25 percent and net margin to 19.8 percent for the year. Strong total contract value (TCV) of $40.7 billion and consistent client additions supported annual performance.
Disclaimer: This summary is based on unaudited financial results and is not investment advice.
