TCS Q4 Results: Seven quarter-high CC revenue growth beats estimates; dividend declared

Tata Consultancy Services Ltd. (TCS), Tata Group's largest company and India's largest IT services provider, reported results after market hours on Thursday, April 9, which were in-line with what the Street was anticipating on most parameters.

In constant currency terms, TCS' revenue grew by 1.2% on a sequential basis, higher than the 1% average estimate from analysts. Estimates ranged from 0.6% at JPMorgan to 1.4% at Goldman Sachs.

This is the highest constant currency revenue growth reported by the company in the last seven quarters.

Net profit for the period rose 29% from the December quarter to ₹13,718 crore from ₹10,657 crore earlier. A CNBC-TV18 poll estimated the profit after tax at ₹13,727 crore.

The company's revenue in rupee terms stood at ₹70,698 crore, which is a growth of 5% from ₹67,087 crore in the December quarter. A CNBC-TV18 poll had projected the figure to be at ₹69,370 crore.

Earnings Before Interest and Tax (EBIT) for TCS stood at ₹17,870 crore, which is higher than the CNBC-TV18 poll of ₹17,603 crore. On a sequential basis, TCS' EBIT went up by 6% from ₹16,889 crore.

EBIT margin for the quarter stood at 25.3%, marginally higher than the 25.2% figure in December and slightly higher than the 25.2% projected in the CNBC-TV18 poll estimate.

TCS reported total contract value of $12 billion for the fourth quarter, among its highest ever, including three mega deals.

The Tata Group company has also approved a final dividend of ₹31 per share for its shareholders. Record date for the said dividend is yet to be declared.

TCS annualised AI revenues surpasses $2.3 bn

In the fourth quarter, Tata Consultancy Services’ annualised artificial intelligence revenues surpassed $2.3 billion.

K Krithivasan, Chief Executive Officer and Managing Director of TCS, said the company reported its third consecutive quarter of sequential growth, supported by three mega deals and total contract value of $12 billion.

He added that while macroeconomic headwinds persist, the company continues to see strong customer conviction in technology investments, which positions it well for future opportunities.

Samir Seksaria, Chief Financial Officer, said that in FY26, the company stepped up investments through its build-partner-acquire strategy, including acquisitions such as Coastal Cloud and List Engage, as well as the launch of HyperVault.

He added that despite scaling up investments in artificial intelligence-led growth opportunities, margins expanded by 70 basis points, reflecting strong operational discipline.

Majority of the analysts tracking TCS continue to have a bullish stance on the stock. 51 analysts have coverage on the stock, of which, 37 have a “buy” recommendation. Nine others have a “hold” rating, while five have a “sell” stance.

Shares of TCS recovered ended 1.2% higher before the earnings announcement at ₹2,590. The stock has jumped 20% so far this year.