Tata Consultancy Services reported a steady March quarter, with profit growth holding firm and deal wins remaining strong, even as macro uncertainties continued to weigh on demand.
The IT major posted a net profit of Rs 13,718 crore for Q4FY26, up 12.2% year-on-year, while revenue rose to Rs 70,698 crore.
Sequentially, profit growth remained modest at around 2%, indicating a gradual recovery rather than a sharp rebound in demand.
Strong deal momentum supported performance during the quarter, with total contract value (TCV) at $12 billion, driven by multiple large deals.
The company also continued to see traction in artificial intelligence-led services, with annualised AI revenue crossing $2.3 billion in the March quarter.
Management said this marked the third consecutive quarter of sequential growth, with momentum seen across major markets and industries despite persistent macro headwinds.
Operating margin for the quarter stood at 25.3%, while net margin was at 19.4%, indicating stable profitability even as the company continued to invest in growth areas such as AI and cloud.
For the full year, revenue grew 4.6% year-on-year to Rs 2,67,021 crore, suggesting that while deal pipelines remain strong, conversion into revenue continues to be gradual.
RS 31 FINAL DIVIDEND ANNOUNCED
TCS announced a final dividend of Rs 31 per share for FY26, subject to shareholder approval at the annual general meeting.
This takes the total shareholder payout for the year to Rs 39,571 crore, reflecting strong cash generation and a consistent capital return policy.
The results underline a familiar theme for the IT sector. Order books remain strong and margins are holding up, but revenue growth is still measured.
For TCS, the near-term outlook will depend on how quickly global demand improves and whether AI-led spending can offset broader macro weakness.
– Ends
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