An ET ballot of analysts had pegged internet revenue at ₹13,802 crore and income at ₹69,894 crore.
The IT bellwether, nevertheless, posted its first annual income decline since going public at 2.4% in fixed foreign money phrases for FY26.
“The standard IT providers mannequin constructed on scale, utilisation, and linear headcount development is operating out of highway,” Phil Fersht chief govt, HfS Analysis mentioned in a notice.
BusinessesConfidence & Warning: CEO
As AI takes centrestage, India’s providers leaders might be jolted into extra aggressive motion. In greenback phrases, FY26 income stood at $30.02 billion.
CEO Okay Krithivasan mentioned TCS is “entering into subsequent yr with a whole lot of positivity and confidence,” with some cautiousness baked in because of the West Asia conflict.
The corporate, which additionally reported the best internet margin within the final 4 years, mentioned its AI income crossed $2.3 billion. It clocked the best whole contract worth (TCV) ever with three giant offers for the quarter and 5 for the yr, signalling a possible turnaround as uncertainties sparked by the conflict in West Asia proceed to weigh on development. TCV was $40.7 billion in FY26 and $12 billion in This fall.
US-listed shares of business friends Infosys and Wipro had been down in afternoon commerce on the New York Inventory Alternate, with shares falling over 2% in early commerce, in a potential response to TCS’ outcomes.
“Right now, I feel the affect (of the conflict) might be restricted to the journey and transportation (business) and doubtless the work we do in West Asia,” he mentioned. “We have now not been listening to every other particular issues from our shoppers in different industries or different job fields. If it continues and leads to additional provide and disruption or every other secondary points, it might have an effect.”
For the total monetary yr, TCS reported income of ₹2,67,021 crore, up 4.6%, though it declined 2.4% in fixed foreign money phrases.
“Whereas the macroeconomic headwinds proceed, we see sustained buyer conviction in expertise investments, which positions us properly for the alternatives forward,” mentioned Krithivasan.
AI SERVICES REVENUE LEAPS
Fourth-quarter AI providers income rose to $2.3 billion from $1.8 billion within the December quarter and $1.5 billion within the September quarter, when the corporate first reported the class individually.
The corporate’s funding within the new HyperVault Information Centres unit is “a catalyst in forging strategic partnerships with OpenAI, AMD and ABB, additional strengthening our positioning throughout infrastructure-to-intelligence,” mentioned chief working officer Aarthi Subramanian. “Our engagements with hyperscalers and frontier AI mannequin corporations have moved past early exploration into design alignment, safety frameworks, side-view diligence, and business constructions. We see the demand converging round giant anchor AI workloads within the 100-200 MW vary per buyer.”
Throughout the fourth quarter, TCS signed contracts with OpenAI and AMD for constructing knowledge centres powered by AI chips.
Working margin, a key metric, swelled to 25% in FY26, its highest in 4 years, the corporate mentioned.
TCS already instructions the best margin amongst all giant cap IT friends because of its scale and operational efficiencies. Nonetheless, from a quarterly perspective, margin development was virtually flat at 25.3% at March-end, up 10 foundation factors.
NelsonHall principal analysis analyst Gaurav Parab mentioned the corporate’s efficiency was higher than anticipated and comes after practically a yr of sustained disruption in discretionary spending, pushed first by tariff-led uncertainty after which broader macro volatility. “The truth that TCS has maintained operational self-discipline by way of this section builds confidence that enormous suppliers are studying to function in a slower, extra selective demand surroundings relatively than ready for a pointy rebound.”
LOWER HEADCOUNT
TCS ended the quarter with 584,519 workers, down 23,460 from a yr in the past, though it added 2,356 workers sequentially with lateral and more energizing hiring.
The corporate had mentioned final yr that it’ll lay off 2% of its workforce and tighten bench insurance policies, which additionally led to voluntary exits, primarily within the mid-to-senior layer. “The restructuring train was accomplished,” the corporate mentioned on Thursday.
Final quarter, TCS had mentioned that its non-traditional or next-generation providers, which excludes legacy items similar to utility improvement, testing and BPS (enterprise course of providers), now account for $11 billion in income. These service strains are increasing sooner than the general common development charge. Greater than 85% of its shoppers with over $20 million in contract worth now use the corporate for AI-led transformation work.
On Thursday, TCS’ board permitted this fiscal’s last dividend of Rs 31 per fairness share, which shall be paid submit the conclusion of its annual basic assembly.
The earnings had been introduced after market hours. TCS shares ended 1.09% increased at ₹2,587.75 on the BSE whereas Sensex was down 1.20%.
The expansion was led by the power and utilities sector, which grew 6.1%, and shopper enterprise, which grew 2.4% after a chronic slowdown. The corporate’s largest consumer section BFSI (banking, monetary providers, insurance coverage), which accounts for 31.6% of income, grew by a marginal 0.1% within the quarter.
