TCS Q4 profit jumps 12%, announces ₹31 dividend; strong growth driven by AI and tech demand

Mumbai: Tata Consultancy Services (TCS) on Thursday reported a solid performance for the January–March quarter (Q4 FY26), posting a 12% year-on-year rise in consolidated net profit.

The IT major recorded a profit of ₹13,718 crore, up from ₹12,224 crore in the same quarter last year. Revenue from operations also grew 9.6% YoY to ₹70,698 crore, compared to ₹64,479 crore in Q4 FY25, reflecting steady demand across markets.

On a sequential basis, the company saw even sharper growth, with profit surging 28.7% quarter-on-quarter and revenue rising 5.4%, marking its third consecutive quarter of growth.

CEO and MD K Krithivasan said the momentum remains broad-based across key geographies and industry verticals. Despite ongoing global macroeconomic challenges, he highlighted strong client confidence in technology investments, which continues to support growth.

TCS also announced a final dividend of ₹31 per share for FY26, subject to shareholder approval at its upcoming Annual General Meeting. The company’s total shareholder payout for the year stood at ₹39,571 crore through dividends.

Expenses for the quarter rose to ₹53,093 crore, compared to ₹49,105 crore a year ago, though sequential expenses were slightly lower at ₹50,736 crore.

Aarthi Subramanian, Executive Director and COO, noted that FY26 has been a significant year for enterprise AI adoption. She revealed that in Q4, TCS’s annualised AI revenues crossed $2.3 billion, driven by rapid deployment of AI-led solutions.

Overall, the results underline TCS’s resilience and its ability to capitalise on emerging technologies like artificial intelligence to sustain growth.

With inputs from IANS

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