India's largest IT services company, Tata Consultancy Services (TCS), enters the June-quarter earnings season with investors closely tracking demand trends, deal wins and the pace of AI-led spending. While macroeconomic uncertainty has weighed on discretionary technology spending in recent quarters, TCS has continued to deliver industry-leading profitability, strong cash generation and a resilient order pipeline.
Here's a look at how the company has performed over the past five financial years.
TCS closed FY26 with consolidated revenue of $30 billion (Rs 2.67 lakh crore) and net profit of Rs 48,553 crore. The company reported its highest operating margin in four years at 25.3%, while net margin stood at 19.4%. It also proposed a final dividend of Rs 31 per share, taking total shareholder payout through dividends in FY26 to Rs 39,571 crore. The company ended the year with a record annual Total Contract Value (TCV) of $40.7 billion, including $12 billion in the March quarter. AI services also emerged as a key growth driver, with annualised AI revenue crossing $2.3 billion.
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According to a statement by TCS, in FY25, TCS reported revenue of $30.18 billion, marking 3.8% year-on-year growth, while maintaining an operating margin of 24.3% and net margin of 19%. The company recorded annual TCV of $39.4 billion, including a record $12.2 billion in the fourth quarter. Shareholders received a total dividend of Rs 126 per share during the year. Regional markets, Energy, Resources and Utilities, manufacturing, enterprise solutions and AI-led cloud services were among the key growth contributors.
FY24 was characterised by resilient execution amid a softer technology spending environment. TCS delivered annual TCV of more than $39 billion while maintaining operating margins above 24%. The company distributed Rs 73 per share in dividends during the year, underscoring its consistent capital return policy.
In FY23, TCS reported revenue of $27.93 billion, up 8.6% year-on-year in constant currency terms. The company recorded an annual TCV of $34.1 billion, with fourth-quarter TCV touching $10 billion. Operating margin stood at 24.1%, while net margin was 18.7%. TCS also announced a leadership transition, with K Krithivasan succeeding Rajesh Gopinathan as chief executive officer and managing director from June 1, 2023. Shareholders received total dividends of Rs 115 per share during the year.
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FY22 marked one of TCS' strongest years as global enterprises accelerated digital transformation after the pandemic. Revenue rose 15.9% to $25.7 billion, while the company delivered its highest-ever annual order book of $34.6 billion and industry-leading operating margin of 25.3%.
Net income stood at $5.14 billion, and TCS returned $4.18 billion to shareholders through dividends and buybacks. The company also added more than 103,000 employees during the year, ending FY22 with a workforce of over 592,000.
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