TCS Reports ₹137.8 Billion March Quarter Profit, Declares ₹31 Final Dividend

Tata Consultancy Services Limited reported an audited consolidated profit for the year of ₹137.8 billion for the three months ended March 31. According to a BSE filing dated April 12 the company generated ₹714.6 billion in total income. Revenue from operations reached ₹707.0 billion, representing a sequential increase from ₹670.9 billion in the December quarter. Other income for the March quarter stood at ₹7.6 billion.

Total expenses for the March quarter amounted to ₹530.9 billion, a figure the BSE filing stated reflects operational efficiency amid global IT spending pressures. Employee benefit expenses accounted for ₹401.4 billion, while the cost of equipment and software licences stood at ₹14.4 billion. The company recorded depreciation and amortisation expenses of ₹14.1 billion, finance costs of ₹2.7 billion, and other expenses totalling ₹98.4 billion. This resulted in a profit before exceptional items and tax of ₹183.6 billion.

Total tax expenses for the March quarter were ₹45.8 billion, comprising ₹48.3 billion in current tax offset by a deferred tax credit of ₹2.5 billion. Profit for the quarter attributable to shareholders of the company reached ₹137.2 billion, while non-controlling interests accounted for ₹0.7 billion. Total other comprehensive income for the period stood at ₹6.6 billion, bringing the total comprehensive income for the March quarter to ₹144.5 billion.

A BSE filing outlined the financial performance across the company's business segments. The Banking, Financial Services and Insurance division remained the primary growth engine, contributing ₹270.2 billion in revenue and generating a segment result of ₹71.2 billion.

The Consumer Business segment added ₹113.5 billion in revenue with a result of ₹33.3 billion, while Communication, Media and Technology generated ₹103.3 billion in revenue and a result of ₹30.7 billion.

The Life Sciences and Healthcare division contributed ₹73.7 billion in revenue and ₹20.6 billion in results. Manufacturing brought in ₹70.0 billion in revenue with a result of ₹21.2 billion, and the others segment accounted for ₹76.3 billion in revenue. Operating income for the March quarter was recorded at ₹176.1 billion, while unallocable expenses totalled ₹16.7 billion.

For the full fiscal year ended March 31; TCS reported revenue from operations of ₹2,670.2 billion and a total income of ₹2,714.2 billion. Full-year total expenses reached ₹2,014.1 billion, which included ₹1,549.9 billion in employee benefit expenses. The company posted a full-year profit before tax of ₹654.9 billion and a profit for the year of ₹494.5 billion. Total comprehensive income for the fiscal year amounted to ₹522.0 billion.

The company disclosed multiple exceptional items within its unallocable expenses for the fiscal year ended March 31. The audited financial statements outlined a ₹21.3 billion statutory impact related to new labour codes, ₹13.9 billion in restructuring expenses, and a ₹10.1 billion provision directed towards a legal claim.

Tata Consultancy Services declared a final dividend of ₹31.00 per equity share for the year ended March 31, 2026. This brought the total equity dividend for the year to ₹110.00 per share, combining an interim dividend of ₹79.00 and the final dividend. Basic and diluted earnings per equity share reached ₹37.92 for the quarter and ₹136.01 for the full year. The total equity dividend percentage stood at 11,000%. 

According to the BSE announcement, this payout underscores a consistent capital return policy with a dividend payout ratio of approximately 82% of profits, maintaining the company's track record as a dividend aristocrat within the Nifty 50 index. Paid-up equity share capital remained steady at ₹3.6 billion, while total reserves, including non-controlling interests, reached ₹1,081.2 billion.

A year-on-year comparison against the April–June indicated a modest constant currency growth of approximately 2.5%. According to the earnings presentation for the March quarter, this performance aligns with cautious IT budget trends in North America, a geographic market that accounts for over 50% of the total revenue for Tata Consultancy Services. The company noted that assets and liabilities are used interchangeably amongst segments, making separate allocation impracticable.