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TCS Q4 Profit Jumps 12%, Announces Rs 31 Dividend Amid AI Growth

Tata Consultancy Services reported a 12% year-on-year increase in consolidated net profit for the January-March quarter. The company's revenue also grew by 9.6% to Rs 70,698 crore, marking its third consecutive quarter of sequential growth. TCS announced a final dividend of Rs 31 per share for FY26, subject to shareholder approval. The company highlighted that its annualised AI revenues have surpassed $2.3 billion, driven by accelerated enterprise adoption.

Key Points: TCS Q4 Net Profit Rises 12%, Declares Rs 31 Dividend

  • 12% YoY profit growth
  • 9.6% revenue increase to Rs 70,698 crore
  • Final dividend of Rs 31 per share
  • AI revenue surpasses $2.3 billion annually
2 min read

TCS clocks 12 pc jump in Q4 net profit, announces Rs 31 dividend

TCS reports 12% YoY jump in Q4 net profit to Rs 13,718 crore, announces final dividend of Rs 31 per share. AI revenue surpasses $2.3 billion.

"We see sustained customer conviction in technology investments, which positions us well for the opportunities ahead. - K Krithivasan"

Mumbai, April 9

Tata Consultancy Services on Thursday reported a 12 per cent year-on-year jump in consolidated net profit for the January-March quarter.

The major IT player had posted a profit of Rs 13,718 crore, compared to Rs 12,224 crore in the year-ago period (Q4 FY25), according to its exchange filing.

The IT major's consolidated revenue from operations also saw healthy growth, increasing 9.6 per cent year-on-year to Rs 70,698 crore, compared to Rs 64,479 crore in Q4 FY25.

On a sequential basis, TCS reported an even sharper improvement, with profit jumping 28.7 per cent quarter-on-quarter (QoQ), while revenue rose 5.4 per cent.

Commenting on the results, Chief Executive Officer and Managing Director K Krithivasan said the company has now delivered its third consecutive quarter of sequential growth.

Krithivasan added that growth momentum remained broad-based across key markets and most industry verticals.

Despite ongoing macroeconomic headwinds, he noted that clients continue to show strong confidence in technology investments, positioning the company well for future opportunities.

"While the macro-economic headwinds continue, we see sustained customer conviction in technology investments, which positions us well for the opportunities ahead," Krithivasan mentioned.

TCS also announced a final dividend of Rs 31 per share for FY26, subject to shareholder approval at the upcoming Annual General Meeting.

The company said its total shareholder payout for the financial year stood at Rs 39,571 crore in the form of dividends.

Total expenses of the IT firm for the fourth quarter stood at Rs 53,093 crore, compared to 49,105 crore in year-ago period. However, on sequential basis, the expenses of the firm were Rs 50,736 crore.

Aarthi Subramanian, Executive Director - President and Chief Operating Officer, said "FY26 marked a pivotal year for enterprise AI adoption.

"In Q4, our annualised AI revenues surpassed $2.3 billion, driven by the accelerated deployment of AI solutions," Subramanian said.

- IANS

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Reader Comments

S
Sarah B
As a shareholder, the Rs 31 dividend is very welcome! The total payout of nearly Rs 40,000 crore for the year is impressive. It shows TCS's commitment to returning value. The AI revenue crossing $2.3B is the real story for future growth.
R
Rohit P
Good numbers, but I hope this profit growth translates into better opportunities and job security for the thousands of engineers on the ground. The IT sector has seen a lot of uncertainty lately. The focus on AI is good, but we need to upskill our workforce fast.
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Priya S
The sequential growth for three quarters is the most positive sign. It means they are navigating the global headwinds well. TCS's performance often sets the tone for other IT stocks. Let's hope this boosts market sentiment overall! 📈
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Vikram M
Respectfully, while the profits are up, the expenses have also jumped significantly year-on-year. From ~49k crore to ~53k crore is a big increase. Management should provide more clarity on cost optimization, especially in a challenging macro environment.
K
Karthik V
$2.3 Billion in AI revenue! That's massive. It proves that Indian IT is not just about legacy services anymore. We are leading in the new tech wave. This is the kind of innovation that will secure our position in the global market for the next decade.

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