BANGALORE: IT major Tata Consultancy Services (TCS) on Thursday reported a 12% year-on-year rise in consolidated net profit for the March quarter, driven by steady revenue growth, strong deal wins and higher contribution from AI-led services.
The company posted a net profit of Rs 13,718 crore, compared with Rs 12,224 crore in the same period last year. Meanwhile, the bottomline rose 5% sequentially.
Revenue from operations for the January–March quarter came in at Rs 70,698 crore, a 10% rise from Rs 64,479 crore a year earlier, while the revenue rose 5.4% quarter-on-quarter.
Additionally, the sharp sequential rise in profit during the Q4 also came due to the absence of exceptional costs that had affected the December quarter. In the previous quarter, TCS had reported charges related to restructuring, the statutory impact of new labour codes and provisions towards a legal claim.
For the full financial year ended March 31, 2026, TCS reported a consolidated net profit of Rs 52,820 crore, up nearly 9% compared to the previous year. Revenue for FY26 rose 4.6% year-on-year to Rs 267,021 crore from Rs 255,324 crore.
Meanwhile, operating performance remained stable. Operating margin for the March quarter stood at 25.3%, up 10 basis points sequentially. For the full year, operating margin was 25%, up 70 basis points year-on-year, the highest in the last four years.
Deal activity improved during the quarter, with total contract value at $12 billion, compared with $9.3 billion in the previous quarter. For the full year, total contract value stood at $40.7 billion, among the highest ever reported by the company.
Annualised AI revenue crossed $2.3 billion in the March quarter, up from $1.8 billion in the December quarter, reflecting continued demand for AI-led transformation services.
K Krithivasan, chief executive officer and managing director, said in the post-results statement: “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.”
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.”
In the March quarter, the total headcount increased by 2,356 to 584,519 from 582,163 in the previous quarter.
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.”
TCS also announced a final dividend of Rs 31 per equity share for FY26, subject to shareholder approval.