- TCS will record a $70 million exceptional expense in Q1 FY27 after Supreme Court denial
- The US Supreme Court denied TCS's petition on June 15, upholding the appeals court ruling
- TCS had previously provided $150 million for the lawsuit in its accounts as per standards
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.
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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.
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