Get App
Download App Scanner
Scan to Download
Advertisement

TCS To Take $70 Million Exceptional Charge In Q1FY27 After US Supreme Court Rejects Appeal In DXC Suit

The case dates back to a suit originally filed by Computer Sciences Corporation, which later merged into DXC Technology. TCS had first disclosed the matter to exchanges in June 2024, with a subsequent update in November 2025.

TCS To Take $70 Million Exceptional Charge In Q1FY27 After US Supreme Court Rejects Appeal In DXC Suit
Photo: NDTV Profit

Tata Consultancy Services Ltd. said it will make a provision of $70 million as a one-time exceptional expense in the first quarter of FY27, after the United States Supreme Court denied its petition for a writ of certiorari in the long-running suit filed by Computer Sciences Corporation, now DXC Technology Company.

The Supreme Court's denial on June 15 means the judgment of the United States Court of Appeals for the Fifth Circuit in the matter stands, the company said in an exchange filing.

TCS had already provided $150 million in its books of accounts in relation to the matter in accordance with applicable accounting standards. The incremental $70 million provision will cover damages, interest and legal costs.

The case dates back to a suit originally filed by Computer Sciences Corporation, which later merged into DXC Technology. TCS had first disclosed the matter to exchanges in June 2024, with a subsequent update in November 2025.

With the Supreme Court denial, the legal route for TCS to challenge the judgment further appears to be exhausted, and the company will now absorb the full financial impact of the verdict in its Q1 FY27 results.

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.

Newsletters

Update Email
to get newsletters straight to your inbox
⚠️ Add your Email ID to receive Newsletters
Note: You will be signed up automatically after adding email

News for You

Set as Trusted Source
on Google Search
Add NDTV Profit As Google Preferred Source