- TCS posted its first annual decline in dollar revenue, down 0.5% to $30,017 million
- Rupee revenue rose 4.6% year-on-year to Rs 2,67,021 crore for the full fiscal year
- Q4 net profit increased 29% sequentially to Rs 13,720 crore, beating analyst estimates
Tata Consultancy Services Ltd. posted its fourth quarter earnings on Thursday. While the results were in line with analyst estimates, TCS reported its first ever decline in dollar revenue for a full financial year.
In the last fiscal the company posted a 0.5% year-on-year decline in dollar revenue at $30,017 million, while in constant currency terms, revenue fell 2.4%. Even during the pandemic-affected fiscal 2021, TCS had managed a marginal growth of 0.6%. Notably, in four of the five financial years preceding FY26, the company had already been witnessing only single-digit growth.
On a sequential basis, TCS posted a 5.4% quarter-on-quarter rise in rupee revenue to Rs 70,698 crore, with constant currency growth at 1.2%. For the full year ended March 31, rupee revenue increased 4.6% year-on-year to Rs 2,67,021 crore, although it registered a 2.4% decline in constant currency terms.
The Indian rupee during the quarter ended March fell 4% hitting multiple record lows. This is beneficial for software companies as they bill in foreign currencies while incurring more costs in rupees. This also helps boost reported earnings when dollar revenues are converted.
The drop comes amid a softening in demand as clients are looking to cut discretionary spending and spending shifted towards cost optimisation and deal cycles lengthened.
TCS Q4 Results
TCS reported a 29% sequential rise in its net profit for the fourth quarter of FY26, according to an exchange filing on Thursday. The IT giant registered its consolidated bottom-line at Rs 13,720 crore for quarter ended March 31, 2026. In the previous quarter its net profit stood at Rs 10,657 crore. Analysts on Bloomberg had estimated a net profit of Rs 13,581 crore.
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Revenue rose 5.5% to Rs 70,698 crore from Rs 67,087 crore, beating analysts' estimate of Rs 67,087 crore. Earnings before interest and taxes rose 6% to Rs 17,870 crore, up 6% from Rs 16,889 crore in Q3, FY26. Whereas EBIT margin stood at 25.3%, compared to 25.2% in the third quarter.
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