Information Technology · NSE: TCS · BSE: 532540
TCS: how the business works
TCS builds, runs and fixes computer systems for large companies worldwide, earning ₹267,021 crore of revenue in FY26.
Tata Consultancy Services Limited · Mumbai, Maharashtra · Founded 1968
Last updated · Reviewed by Cityfort Research on
- Revenue, FY26
- ₹267,021 cr
- Net profit to shareholders, FY26
- ₹49,210 cr
- Employees, 30 Sep 2026
- 598,056
- In business since
- 1968
- Promoter holding, Sep 2026
- 71.77%
01 · The business in one line
What does TCS do?
Companies pay TCS for engineers' work; staff pay takes ₹57 of every ₹100 coming in, and ₹18 is profit.
- In FY26, banks, financial firms and insurers paid 38.7% of TCS revenue. Clients in the Americas and Europe paid 83.3%.
- TCS had no borrowings in March 2026. In FY26 it paid ₹39,437 crore of dividends out of ₹48,057 crore of free cash flow.
02 · What it sells
What does TCS sell?
Building and maintaining software
Writes new software for clients and keeps their existing systems running and updated. TCS calls this application development and maintenance.
Consulting and systems integration
Advises clients on technology and joins different systems together so they work as one.
AI, data and cloud services
Moves clients' systems and data to the cloud and builds AI tools. TCS said its annualised AI revenue was US$3.1 billion in Q2 FY27.
Running business operations
Runs clients' back-office processes and IT operations for them. TCS calls this Cognitive Business Operations.
Own software products and platforms
Software TCS owns and licenses, such as TCS BaNCS. All hardware and software licence sales, including other makers' products, were ₹4,333 crore in FY26.
AI data centres (new)
HyperVault, a subsidiary in which TPG holds 49%, plans AI data centres in India. It had no revenue up to 31 Dec 2025.
Think of it like this
Like a building contractor for computer systems: clients pay for the time spent or a fixed price.
What it does
- Does: Serves clients in 55 countries from 185 offices and delivery centres abroad and 126 in India (FY26 BRSR).
- Does: Delivers much of its work from India: exports were 94.1% of the parent company's FY26 turnover.
- Does: Bills by time and materials, by fixed price, or by outcome or transaction, depending on the contract.
What it does not do
- Does not: Does not earn much from India itself: India was 5.9% of FY26 revenue.
- Does not: Does not make most of its money from hardware: equipment and software licence sales were 1.6% of FY26 revenue.
- Does not: Does not borrow: it had no borrowings at any year-end from FY22 to FY26.
- Does not: Is not the Tata Group's holding company: Tata Sons Private Limited owns 71.74% of TCS.
Source: Integrated Annual Report FY26 (incl. consolidated financial statements and BRSR); Q2 FY27 results press release (Ind AS & IFRS); General Updates: General Updates
03 · Who pays it
Who pays TCS?
Banking, financial services and insurance
39%
of revenue
Banks, financial firms and insurers.
Consumer business
16%
of revenue
Consumer-facing companies.
Communication, media and technology
15%
of revenue
Telecom, media and technology companies.
Life sciences and healthcare
10%
of revenue
Drug makers and healthcare companies.
Others (energy, utilities, government, products)
10%
of revenue
Energy, resources and utility companies, governments, and buyers of TCS products.
Manufacturing
10%
of revenue
Factories and industrial companies.
- Banking, financial services and insurance39%
- Consumer business16%
- Communication, media and technology15%
- Life sciences and healthcare10%
- Others (energy, utilities, government, products)10%
- Manufacturing10%
How spread out the customers are
No single customer gave TCS 10% or more of revenue in FY26 or FY25. TCS does not disclose its top-5 or top-10 share. 66 clients each paid TCS more than US$100 million in FY26, up from 64 in FY25.
Source: Integrated Annual Report FY26 (incl. consolidated financial statements and BRSR); Q4 FY26 results press release (Ind AS & IFRS); Q4 FY25 results press release (Ind AS & IFRS)
04 · How the money flows · FY26
How does money flow through TCS?
Money in
- Revenue from operations₹267,021 cr
- Other income (mostly from cash and investments)₹4,402 cr
The company
TCS
₹271,423 cr came in
Money out
- Staff pay and benefits₹154,994 cr
- Fees to outside consultants (subcontractors)₹14,699 cr
- Offices, travel, hardware and software bought for resale, other costs₹24,930 cr
- Depreciation₹5,560 cr
- Interest and tax₹17,260 cr
- One-off charges (restructuring, labour codes, US legal claim)₹4,526 cr
- Profit after tax (₹49,210 crore to TCS shareholders, ₹244 crore to minority partners)₹49,454 cr
- In FY26 clients paid TCS ₹267,021 crore. It also earned ₹4,402 crore of other income.
- Staff pay and benefits took the biggest share: ₹154,994 crore.
- Outside consultants, offices, travel, resold hardware and other costs took ₹39,629 crore.
- Depreciation, interest and tax took ₹22,820 crore. One-off charges took ₹4,526 crore.
- The ₹49,454 crore left was profit. Of it, ₹49,210 crore belonged to TCS shareholders.
Source: Integrated Annual Report FY26 (incl. consolidated financial statements and BRSR)
05 · Where the money goes · FY26
Where does ₹100 of TCS' money go?
TCS · FY26
Receipt for every ₹100
| Staff pay and benefits | ₹57.1 |
|---|---|
| Outside consultants (subcontractors) | ₹5.4 |
| Offices, travel, resold hardware and other costs | ₹9.2 |
| Depreciation | ₹2.0 |
| Interest and tax | ₹6.4 |
| One-off charges | ₹1.7 |
| Kept as profit for TCS shareholders | ₹18.1 |
| Profit belonging to minority partners | ₹0.1 |
| Total | ₹100 |
Each line = amount ÷ total money in × 100. Lines may not add to exactly ₹100 because of rounding.
Source: Integrated Annual Report FY26 (incl. consolidated financial statements and BRSR)
06 · What it needs to run
What does TCS need to run?
People
598,056 employees on 30 Sep 2026. Over the previous 12 months, 13.3% of IT services staff left (attrition).
Offices and delivery centres
126 offices and delivery centres in India and 185 abroad, serving clients in 55 countries (FY26 BRSR).
Subcontractors
TCS also pays outside consultants. Their fees were ₹14,699 crore in FY26, up from ₹11,695 crore in FY25.
AI skills
TCS said more than 270,000 staff had advanced AI and machine-learning skills at the end of FY26.
Source: Q2 FY27 results press release (Ind AS & IFRS); Business Responsibility and Sustainability Report FY26 (filed separately with NSE); Integrated Annual Report FY26 (incl. consolidated financial statements and BRSR) and 1 more
07 · Why it makes money
Why does TCS make money?
It sells skilled people's time at scale; pay, pricing and staff use decide the margin
TCS bills clients for staff time or fixed-price work, so revenue grows with headcount and prices. Staff pay took ₹58.0 of every ₹100 of revenue in FY26, up from ₹56.1 in FY22. On 8 Oct 2026 the CFO named subcontractor costs, productivity and utilisation as margin levers.
Staff pay per ₹100 of revenue
₹56.1₹58.0
FY22 to FY26
- Large clients sign multi-year IT contracts
- TCS staffs the work, much of it from India
- Clients pay by time, project or outcome
- Pay and subcontractors take most of the money
- Low capex (1.5% of FY26 revenue) turns most profit into cash
↺ Step 5 feeds back into step 1.
Source: Integrated Annual Report FY26 (incl. consolidated financial statements and BRSR); Integrated Annual Report FY23 (incl. consolidated financial statements and BRSR)
08 · Business segments · FY26
Which businesses make up TCS?
Banking, financial services and insurance
39%Banks, financial firms and insurers. Revenue grew 9.3% in FY26. Segment result (before depreciation) was 26.1% of its revenue.
Revenue ₹103,363 cr
Consumer business
16%Consumer-facing companies; called Retail and Consumer Business until FY23. Segment result was 28.5% of revenue.
Revenue ₹42,432 cr
Communication, media and technology
15%Telecom, media and technology companies. Revenue fell 14.0% in FY26. Segment result was 29.1% of revenue.
Revenue ₹39,474 cr
Life sciences and healthcare
10%Drug makers and healthcare companies. Segment result was 27.0% of revenue.
Revenue ₹27,745 cr
Others (energy, utilities, government, products)
10%Energy, resources and utilities, government work and products. Revenue grew 19.0% in FY26. Segment result was 22.9% of revenue.
Revenue ₹27,393 cr
Manufacturing
10%Factories and industrial companies. Segment result was 30.3% of revenue.
Revenue ₹26,614 cr
How the mix changed
- Banking, financial services and insurance
- Consumer business
- Communication, media and technology
- Life sciences and healthcare
- Others (energy, utilities, government, products)
- Manufacturing
Revenue by segment, FY22 to FY26.
₹ crore · Source: Integrated Annual Report FY23 (incl. consolidated financial statements and BRSR); Integrated Annual Report FY24 (incl. consolidated financial statements and BRSR); Integrated Annual Report FY25 (incl. consolidated financial statements and BRSR) and 1 more
See the numbers
Source: Integrated Annual Report FY26 (incl. consolidated financial statements and BRSR); Integrated Annual Report FY23 (incl. consolidated financial statements and BRSR); Integrated Annual Report FY24 (incl. consolidated financial statements and BRSR)
09 · Where it sells · FY26
Where does TCS sell?
- Americas (USA alone 44.5%)51%
- Europe (UK alone 17.4%)33%
- India6%
- Other countries11%
Source: Integrated Annual Report FY26 (incl. consolidated financial statements and BRSR)
10 · Competitors and what protects it
Who does TCS compete with?
HCL Technologies Ltd
NSE: HCLTECH
Sells IT and business services, engineering services and its own software products; FY26 consolidated revenue ₹130,144 crore.
Infosys Ltd
NSE: INFY
Sells IT services to banks, manufacturers, retailers and others worldwide; FY26 consolidated revenue ₹178,650 crore.
Tech Mahindra Ltd
NSE: TECHM
Sells IT services and business process services (back-office work); FY26 consolidated revenue ₹56,815 crore.
Wipro Ltd
NSE: WIPRO
Sells IT services and consulting to large companies worldwide; FY26 consolidated revenue ₹92,624 crore.
What protects the business
Each strength is scored 1 (weak) to 5 (strong) for the business, with the reason. It is not a rating of the share.
- Scale of workforce4 of 5
598,056 employees on 30 Sep 2026, working from 311 offices and delivery centres and serving 55 countries.
- Large, spread-out client base4 of 5
66 clients each paid more than US$100 million in FY26. No single client gave 10% or more of revenue.
- Cash and no debt4 of 5
No borrowings at any year-end from FY22 to FY26. Free cash flow was 91–98% of net profit each year.
- Own software products2 of 5
Most revenue is services. All hardware and software licence sales, including resold products, were 1.6% of FY26 revenue.
Weak spot
Revenue fell in constant currency in FY26
FY26 revenue fell 2.4% in constant currency, the company said, though it rose 4.6% in rupees. Q2 FY27 grew 0.5% over Q1 in constant currency.
Source: HCL Technologies Ltd: Annual Report FY26 (competitor evidence); Infosys Ltd: Annual Report FY26 (competitor evidence); Tech Mahindra Ltd: Annual Report FY26 (competitor evidence) and 9 more
11 · Where growth could come from
Where could TCS' growth come from?
TCS says it does not give revenue or earnings guidance (8 Oct 2026 call). On 9 Jul 2026 management said it wants to exit FY27 with an operating margin of 25% or more. On 8 Oct 2026 the CFO said the long-term margin aspiration remains 26% to 28%. Operating margin is TCS's own measure: profit from operations after depreciation and before one-off items, per ₹100 of revenue.
AI services
WorkingUS$3.1 bn annualised, Q2 FY27
TCS said annualised AI revenue rose from US$1.8 billion in Q3 FY26 to US$3.1 billion in Q2 FY27. TCS said this crosses 10% of its revenue.
Status: Working, on track against what the company said.
New contracts signed
MixedUS$40.7 bn TCV, FY26
Total contract value (TCV) signed was US$40.7 billion in FY26, against US$39.4 billion in FY25. FY26 revenue still fell 2.4% in constant currency.
Status: Mixed, partly on track.
Acquisitions
NewMHP: EUR 320 mn, awaiting approvals
TCS bought ListEngage (Oct 2025) and Coastal Cloud (Jan 2026), both Salesforce consultants, and Best Buy's India centre (Oct 2026). It agreed in Aug 2026 to buy MHP, Porsche's consulting arm.
Status: New, recently announced.
AI data centres (HyperVault)
EarlyUp to 1 GW campus planned, Hyderabad
TPG has held 49% of HyperVault since 9 Mar 2026. On 5 Sep 2026 HyperVault said it had secured 264 acres for the campus.
Status: Early, too early to judge.
India business
MixedIndia revenue ₹15,775 cr, FY26
India revenue rose to ₹22,060 crore in FY25, then fell 28.5% in FY26. On 8 Oct 2026 the CEO said BSNL work 'can provide a cushion for the next couple of quarters'.
Status: Mixed, partly on track.
Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.
Source: Q2 FY27 earnings call transcript; Q1 FY27 earnings call transcript; Q3 FY26 results press release (Ind AS & IFRS) and 10 more
12 · The numbers · Consolidated · ₹ crore
How has TCS done?
Revenue
₹267,021 crFY26
Revenue rose every year, from ₹191,754 crore in FY22 to ₹267,021 crore in FY26; growth slowed to 4.6% in FY26.
₹ crore · Source: Integrated Annual Report FY23 (incl. consolidated financial statements and BRSR); Integrated Annual Report FY22 (incl. consolidated financial statements and BRSR); Integrated Annual Report FY24 (incl. consolidated financial statements and BRSR) and 14 more
See the numbers
Net profit
₹49,210 crFY26
Net profit to shareholders rose every year, to ₹49,210 crore in FY26; FY26 growth was 1.4% after one-off charges.
₹ crore · Source: Integrated Annual Report FY23 (incl. consolidated financial statements and BRSR); Integrated Annual Report FY22 (incl. consolidated financial statements and BRSR); Integrated Annual Report FY24 (incl. consolidated financial statements and BRSR) and 2 more
See the numbers
Profit kept per ₹100 of revenue
₹18.4FY26
EBITDA per ₹100 of revenue was ₹27.7 in FY22 and ₹25.4 in FY26, or ₹27.1 before FY26's one-off charges.
₹ of profit per ₹100 of revenue (net margin) · Source: Integrated Annual Report FY23 (incl. consolidated financial statements and BRSR); Integrated Annual Report FY22 (incl. consolidated financial statements and BRSR); Integrated Annual Report FY24 (incl. consolidated financial statements and BRSR) and 2 more
See the numbers
Free cash flow
₹48,057 crFY26
Free cash flow rose from ₹36,969 crore in FY22 to ₹48,057 crore in FY26, at 91–98% of net profit.
₹ crore · cash from operations minus spending on plants and equipment · Source: Integrated Annual Report FY23 (incl. consolidated financial statements and BRSR); Integrated Annual Report FY22 (incl. consolidated financial statements and BRSR); Integrated Annual Report FY24 (incl. consolidated financial statements and BRSR) and 2 more
See the numbers
See all yearly numbers
EBITDA = profit before interest, tax and wear-and-tear of assets. Financial year runs April to March (March year end). Net profit is the share belonging to the company's owners.
13 · Financial strength · 31 Mar 2026
How much debt does TCS have?
- Total debt₹0 cr
- Cash and investments₹46,678 cr
- Net cash (cash minus debt)₹46,678 cr
- Net worth (shareholders' money)₹107,240 cr
- Debt to equity
- 0×
- ₹ of debt for every ₹1 of shareholders' money
- Contingent liabilities
- ₹2,330 cr
- possible future payments, e.g. disputed claims
- Debt here means borrowings. TCS had none on 31 Mar 2026, or at any year-end from FY22 to FY26.
- Lease liabilities (rent owed under leases) were a further ₹11,283 crore. Cash and liquid investments exceeded them by ₹35,395 crore.
- HyperVault, a subsidiary, also had ₹126 crore of preference shares that count as a liability.
- Cash and liquid investments = cash, other bank balances and current investments. Net worth = equity belonging to TCS shareholders.
- Contingent liabilities (demands and claims TCS disputes) were ₹2,330 crore. That is ₹583 crore direct tax, ₹1,446 crore indirect tax and ₹301 crore other claims.
Source: Integrated Annual Report FY26 (incl. consolidated financial statements and BRSR)
14 · Who owns it · Q2 FY27
Who owns TCS?
- Promoters (founders or parent company)71.8%
- Foreign institutions (FII)9.0%
- Indian institutions (DII)13.6%
- Public and others5.7%
Promoter pledge
No promoter shares were pledged in Q2 FY27.
How ownership changed
* Pledged = share of the promoters' own holding reported as pledged. In older filings this can include shares “otherwise encumbered”; the governance flags say when.
Source: Shareholding pattern as on Sep 2026 (XBRL filed with NSE); Shareholding pattern as on Jun 2026 (XBRL filed with NSE); Shareholding pattern as on Mar 2026 (XBRL filed with NSE; revised filing) and 9 more
15 · What it does with profit
What does TCS do with its profit?
Dividend per share
₹110.00FY26
Dividend paid for each share, by financial year.
₹ per share · Source: Integrated Annual Report FY22 (incl. consolidated financial statements and BRSR); Integrated Annual Report FY23 (incl. consolidated financial statements and BRSR); Integrated Annual Report FY24 (incl. consolidated financial statements and BRSR) and 5 more
See the numbers
Buyback · 29 Mar 2022
Bought back 4 crore shares at ₹4,500 each through a tender offer, its fourth buyback in five years.
₹18,000 cr
Buyback · 13 Dec 2023
Bought back 40,963,855 shares at ₹4,150 each through a tender offer.
₹17,000 cr
Source: Integrated Annual Report FY22 (incl. consolidated financial statements and BRSR); Buyback: Buyback; Closure of Buy Back: Closure of Buy Back with effect from December 13, 2023
16 · Who runs it
Who runs TCS, and did they deliver?
N Chandrasekaran
Chairman (non-executive) · since 2007
On the TCS board since 6 Sep 2007. Also Chairman of Tata Sons, the promoter. His term as Tata Sons Chairman ends on 20 Feb 2027 (statement filed 12 Aug 2026).
K Krithivasan
Chief Executive Officer and Managing Director · since 2023
On the board since 1 Jun 2023.
Aarthi Subramanian
Executive Director, President and Chief Operating Officer · since 2025
In this role from 1 May 2025; on the board since 2015.
Samir Seksaria
Chief Financial Officer
What they said, and what happened
1 delivered · 3 too early to tell
Said on 10 Apr 2025
Improve the operating margin in FY26 compared with FY25.
DeliveredWhat happened
TCS reported a FY26 operating margin of 25.0% before one-off items, up from 24.3% in FY25.
Said on 9 Oct 2025
Build 1 GW of AI data-centre capacity in phases over five to seven years.
Too early to tellWhat happened
TPG took 49% of HyperVault on 9 Mar 2026. On 5 Sep 2026 HyperVault said it had land in Hyderabad for an up-to-1 GW campus.
Said on 9 Jul 2026
Exit FY27 with an operating margin of 25% or more.
Too early to tellWhat happened
Operating margin was 24.0% in Q1 FY27 and again in Q2 FY27.
Said on 9 Oct 2026
Hire an additional 15,000 people in the US over the next five years.
Too early to tellWhat happened
Stated on 9 Oct 2026; no progress figure has been filed yet.
Source: Integrated Annual Report FY26 (incl. consolidated financial statements and BRSR); Clarification to NSE on news reports, enclosing a statement by N Chandrasekaran, Chairman of Tata Sons (12 Aug 2026); Appointment: Appointment of Ms Aarthi Subramanian as Executive Director President and Chief Operating Officer of the company w.e.f. May 01, 2025. and 10 more
17 · Governance signals
What do TCS' governance filings show?
- Auditor
- B S R & Co. LLP
- Auditor changes
- 28 Feb 2026: B S R & Co. LLP → Walker Chandiok & Co LLP (Proposed, not a resignation. B S R's term ends at the 2027 AGM. The board recommended Walker Chandiok for 2027–2032, subject to shareholder approval.)
- Audit qualifications
- None reported
- Related-party dealings
- Tata Sons and other Tata Group companies are related parties. In FY26 TCS earned ₹7,071 crore of revenue from them and paid Tata Sons a ₹368 crore brand fee. TCS paid Tata Sons ₹28,291 crore of dividends and placed ₹1,500 crore of deposits with Tata Sons subsidiaries.
- Credit rating
- Moody's Ratings A2 (long-term local-currency issuer rating, up from Baa1) (Not stated in the company's filing), 29 May 2026
A credit rating describes the company's ability to repay debt. It is not a rating of the share.
Flags to know about
other · 15 Jun 2026
US trade-secrets lawsuit
In April 2019 Computer Sciences Corporation (CSC)/DXC Technology sued TCS in Texas, alleging misappropriation of trade secrets. The trial court ordered damages in Jun 2024; the appeals court upheld liability in Nov 2025. The US Supreme Court denied TCS's petition on 15 Jun 2026. TCS provided US$150 million, then US$70 million plus US$7 million of interest in Q1 FY27.
pledge · 31 Dec 2024
Past encumbrance of promoter shares, now zero
In Sep and Dec 2023, 0.48% of promoter-group shares were filed as 'pledged or otherwise encumbered'. From Mar to Sep 2024 it was 0.28%. That filing format did not separate pledges from other encumbrances. The figure has been 0 since Dec 2024.
other · 12 Aug 2026
Statement on the Tata Sons chairmanship
On 12 Aug 2026, after an NSE query, TCS filed a statement by N Chandrasekaran, Chairman of Tata Sons. He said he will not seek reappointment as Tata Sons Chairman when his term ends on 20 Feb 2027. The statement does not mention his role as TCS Chairman.
Source: Integrated Annual Report FY26 (incl. consolidated financial statements and BRSR); Appointment: Appointment of Walker Chandiok & Co LLP, Chartered Accountants as Statutory Auditors of the company.; Updates: 'Credit Rating'. and 10 more
18 · What the market paid · price as of 30 Jun 2026
What did the market pay for TCS on 30 Jun 2026?
Price as of 30 Jun 2026 (shown for education; prices change daily).
Price as of 30 Jun 2026 (data at least 3 months old, shown for education): ₹2,031.50 on NSE. Market value was ₹735,014 crore. P/E is the share price divided by one year's profit per share (FY26: ₹136.01). P/B divides the price by shareholders' equity per share on 31 Mar 2026. EV/EBITDA compares the value of the whole business, after subtracting cash and liquid investments, with FY26 EBITDA.
- Share price
- ₹2,031.50
- Market value (market cap)
- ₹735,014 cr
- P/E
- 14.9×
- P/B
- 6.9×
- EV/EBITDA
- 10.1×
Source: NSE equity bhavcopy (UDiFF), 30 Jun 2026; NSE security-wise bhavdata with delivery, 30 Jun 2026; Shareholding pattern as on Jun 2026 (XBRL filed with NSE) and 1 more
19 · What could go wrong
What could go wrong for TCS?
- Technology
AI changing how IT services are bought
TCS's FY26 annual report says AI models could change business and pricing models. It adds that clients may delay or rethink spending under current contracts.
Watch Constant-currency growth each quarter, and TCS's reported AI revenue.
- Demand
Client spending in the Americas and Europe
83.3% of FY26 revenue came from the Americas and Europe. The FY26 annual report says wars, trade policies and inflation can hit client spending. FY26 revenue fell 2.4% in constant currency.
Watch Constant-currency growth by market in each results press release.
- Execution
Staff and subcontractor costs
Staff pay took about ₹57 of every ₹100 that came in during FY26. Fees to outside consultants rose 25.7% to ₹14,699 crore. On 8 Oct 2026 the CFO named subcontractor costs as a margin lever.
Watch Quarterly operating margin in each results press release.
- Currency
Currency swings
Exports were 94.1% of the parent company's FY26 turnover, so the rupee's value moves reported revenue. FY26 revenue rose 4.6% in rupees but fell 2.4% in constant currency. On 9 Apr 2026 the CFO said a weaker rupee helps but is 'not guaranteed always'.
Watch Gap between rupee growth and constant-currency growth in each results press release.
- Regulation
Limits on moving staff abroad
The FY26 annual report says TCS's delivery model depends on skilled staff moving across borders, and restrictions could raise costs. On 9 Oct 2026 TCS said it will comply with US directives on the Permanent Labor Certification Program (PERM). It said its PERM applications were in single digits in the last two years.
Watch Company statements on US and UK visa or work-permit rules.
- Legal
Legal claims and tax disputes
Computer Sciences Corporation (CSC)/DXC Technology sued TCS in the US, alleging misappropriation of trade secrets. After TCS's appeals failed, it provided US$227 million in total, including US$45 million of interest. TCS also disputes ₹2,029 crore of tax demands (31 Mar 2026).
Watch New provisions or one-off charges in quarterly results.
- Execution
Large data-centre spending
TCS and TPG agreed to invest up to ₹18,000 crore in HyperVault. HyperVault and partners expect to invest up to ₹70,000 crore in the Hyderabad campus. On 9 Oct 2025 the CEO estimated about US$1 billion of capex per 150 MW.
Watch HyperVault capex, funding and customer contracts disclosed in filings.
Source: Integrated Annual Report FY26 (incl. consolidated financial statements and BRSR); Q4 FY26 results press release (Ind AS & IFRS); Q2 FY27 earnings call transcript and 9 more
20 · How it got here
How did TCS get here?
1968
Milestone
Starts in 1968
TCS dates its start to 1968. The current company was incorporated in 1995.
2022
Milestone
₹18,000 crore buyback
Bought back 4 crore shares at ₹4,500 each in Mar 2022, its fourth buyback in five years.
2023
Milestone
₹17,000 crore buyback
Bought back 40,963,855 shares at ₹4,150 each. The tender closed on 7 Dec 2023; the shares were cancelled on 13 Dec 2023.
2025
Milestone
India revenue rises, then falls
India revenue rose to ₹22,060 crore in FY25 from ₹13,562 crore, while TCS built a 4G network for state-owned BSNL. It fell to ₹15,775 crore in FY26.
2025
Business-model change
Cuts staff in a restructuring
Headcount fell from 613,069 in Jun 2025 to 582,163 in Dec 2025. FY26 restructuring costs were ₹1,388 crore.
2025
Business-model change
Enters AI data centres
Set up HyperVault on 29 Oct 2025 and signed TPG as a partner on 20 Nov 2025. TPG has held 49% since 9 Mar 2026.
2026
Milestone
Buys Coastal Cloud
Completed buying Coastal Cloud, a US Salesforce consultant, on 14 Jan 2026. The enterprise value was up to US$700 million.
2026
Business-model change
Agrees to buy Porsche's MHP
Agreed on 24 Aug 2026 to buy MHP, a German consulting firm, for an enterprise value of EUR 320 million. Porsche also signed a five-year deal; both await approvals.
Source: Integrated Annual Report FY26 (incl. consolidated financial statements and BRSR); Q2 FY27 audited financial results (standalone + consolidated, incl. segment information); Integrated Annual Report FY22 (incl. consolidated financial statements and BRSR) and 13 more
21 · Both sides
What do supporters and critics point to?
What supporters point to
- TCS had no borrowings at any year-end from FY22 to FY26. It held ₹46,678 crore of cash and liquid investments in Mar 2026.
- Free cash flow was 91–98% of net profit in each year from FY22 to FY26.
- TCS said annualised AI revenue reached US$3.1 billion in Q2 FY27, up from US$1.8 billion in Q3 FY26.
- Net profit to shareholders rose 15.0% year on year in Q2 FY27, to ₹13,884 crore.
- No single customer gave 10% or more of FY26 revenue, and 66 clients each paid over US$100 million.
What critics point to
- FY26 revenue fell 2.4% in constant currency, the company said, though it rose 4.6% in rupees.
- Net profit to shareholders grew 1.4% in FY26, after ₹4,526 crore of one-off charges.
- Operating margin was 24.0% in Q1 and Q2 FY27, against 25% for FY26, TCS reported.
- Headcount fell by about 31,000 between Jun and Dec 2025 during a restructuring.
- A US case alleging misappropriation of trade secrets led to US$227 million of provisions after TCS's appeals failed.
22 · What to watch next
What should you watch next at TCS?
Next event
Q3 FY27 results (expected, based on last year's 12 Jan date)
12 Jan 2027
Expected, based on last year's date
Operating margin
Management said on 9 Jul 2026 it wants to exit FY27 at 25% or more. Q1 and Q2 FY27 were both 24.0%.
MHP deal closing
The EUR 320 million MHP purchase awaits regulatory approvals. The five-year Porsche deal starts when it closes.
Constant-currency growth
Q2 FY27 revenue grew 0.5% over Q1 in constant currency. Q3 results will show the next step.
23 · Key facts
Key facts about TCS
- What does TCS do?
- Tata Consultancy Services (TCS) is an Indian IT services company. TCS writes and maintains software, moves systems to the cloud, runs back-office work and advises large organisations on technology. TCS earned ₹267,021 crore of revenue in FY26.
- How does TCS make money?
- TCS bills clients for its staff's time, for fixed-price projects, or by outcome or transaction. In FY26, 98.4% of TCS revenue came from services and 1.6% from selling hardware and software licences. Staff pay took about ₹57 of every ₹100 that came in.
- Who are TCS's customers?
- TCS's FY26 BRSR says it works mainly with Fortune 1000 and Global 2000 companies and the public sector. In FY26, banks, financial firms and insurers gave TCS 38.7% of revenue. No single customer gave TCS 10% or more of revenue in FY26.
- Where does TCS earn its revenue?
- In FY26 TCS earned 50.6% of revenue in the Americas (USA 44.5%) and 32.8% in Europe (UK 17.4%). India gave TCS 5.9% and other countries 10.8%.
- How big is TCS?
- In FY26 (April 2025 to March 2026), TCS had revenue of ₹267,021 crore and shareholders' net profit of ₹49,210 crore. TCS had 598,056 employees on 30 Sep 2026.
- Who owns TCS?
- On 30 Sep 2026 the TCS promoter group owned 71.77%. Tata Sons Private Limited alone held 71.74%. Foreign institutions held 9.01% of TCS, Indian institutions 13.57%, and individuals and others 5.65%.
- Does TCS have debt?
- TCS had no borrowings on 31 Mar 2026. TCS held ₹46,678 crore in cash, bank balances and short-term investments. TCS also had ₹11,283 crore of lease liabilities, which is rent owed under leases.
- How did TCS do in Q2 FY27?
- In Q2 FY27 (July to September 2026), TCS revenue rose 11.2% to ₹73,188 crore versus Q2 FY26. TCS net profit to shareholders rose 15.0% to ₹13,884 crore. TCS said revenue grew 0.5% over Q1 FY27 in constant currency.
- How much does TCS return to shareholders?
- TCS declared dividends of ₹110 per share for FY26, including a special dividend of ₹46. In FY26 TCS paid ₹39,437 crore of dividends in cash, equal to 82.1% of its ₹48,057 crore free cash flow.
Source: Integrated Annual Report FY26 (incl. consolidated financial statements and BRSR); Business Responsibility and Sustainability Report FY26 (filed separately with NSE); Q2 FY27 results press release (Ind AS & IFRS) and 4 more
Terms on this page
- Capital expenditure (capex)
- Credit rating
- Dividend payout ratio
- EBITDA
- FII and DII holding
- Free cash flow
- Net debt
- Net profit
- Operating margin
- Promoter holding
Each explains the term in plain English, with the same number from other companies on Cityfort.
24 · Sources and changes
Where every number on this page comes from
Sources (67 documents)
- S1Integrated Annual Report FY26 (incl. consolidated financial statements and BRSR) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 15 May 2026
- S2Integrated Annual Report FY25 (incl. consolidated financial statements and BRSR) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 27 May 2025
- S3Integrated Annual Report FY24 (incl. consolidated financial statements and BRSR) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 9 May 2024
- S4Integrated Annual Report FY23 (incl. consolidated financial statements and BRSR) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 7 Jun 2023
- S5Integrated Annual Report FY22 (incl. consolidated financial statements and BRSR) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 18 May 2022
- S6Q2 FY27 audited financial results (standalone + consolidated, incl. segment information) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 8 Oct 2026
- S7Q1 FY27 audited financial results (standalone + consolidated, incl. segment information) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 9 Jul 2026
- S8Q4 FY26 audited financial results (standalone + consolidated, incl. segment information) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 9 Apr 2026
- S9Q3 FY26 audited financial results (standalone + consolidated, incl. segment information) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 12 Jan 2026
- S10Q2 FY26 audited financial results (standalone + consolidated, incl. segment information) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 9 Oct 2025
- S11Q1 FY26 audited financial results (standalone + consolidated, incl. segment information) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 10 Jul 2025
- S12Q4 FY25 audited financial results (standalone + consolidated, incl. segment information) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 10 Apr 2025
- S13Q3 FY25 audited financial results (standalone + consolidated, incl. segment information) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 9 Jan 2025
- S14Q2 FY25 audited financial results (standalone + consolidated, incl. segment information) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 10 Oct 2024
- S15Q1 FY25 audited financial results (standalone + consolidated, incl. segment information) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 11 Jul 2024
- S16Q4 FY24 audited financial results (standalone + consolidated, incl. segment information) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 12 Apr 2024
- S17Q3 FY24 audited financial results (standalone + consolidated, incl. segment information) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 11 Jan 2024
- S19Q2 FY27 results press release (Ind AS & IFRS) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 8 Oct 2026
- S20Q1 FY27 results press release (Ind AS & IFRS) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 9 Jul 2026
- S21Q4 FY26 results press release (Ind AS & IFRS) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 9 Apr 2026
- S22Q3 FY26 results press release (Ind AS & IFRS) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 12 Jan 2026
- S24Q1 FY26 results press release (Ind AS & IFRS) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 10 Jul 2025
- S25Q4 FY25 results press release (Ind AS & IFRS) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 10 Apr 2025
- S31Q2 FY27 earnings call transcript · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 14 Oct 2026
- S32Q1 FY27 earnings call transcript · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 15 Jul 2026
- S33Q4 FY26 earnings call transcript · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 14 Apr 2026
- S34Q3 FY26 earnings call transcript · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 16 Jan 2026
- S37Q2 FY26 earnings call transcript · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 15 Oct 2025
- S39Q4 FY25 earnings call transcript · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 12 Apr 2025
- S48Business Responsibility and Sustainability Report FY26 (filed separately with NSE) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 15 May 2026
- S50Shareholding pattern as on Sep 2026 (XBRL filed with NSE) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 19 Oct 2026
- S51Shareholding pattern as on Jun 2026 (XBRL filed with NSE) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 21 Jul 2026
- S52Shareholding pattern as on Mar 2026 (XBRL filed with NSE; revised filing) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 17 Sep 2026
- S53Shareholding pattern as on Dec 2025 (XBRL filed with NSE) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 21 Jan 2026
- S54Shareholding pattern as on Sep 2025 (XBRL filed with NSE) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 20 Oct 2025
- S55Shareholding pattern as on Jun 2025 (XBRL filed with NSE) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 21 Jul 2025
- S56Shareholding pattern as on Mar 2025 (XBRL filed with NSE) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 18 Apr 2025
- S57Shareholding pattern as on Dec 2024 (XBRL filed with NSE) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 17 Jan 2025
- S58Shareholding pattern as on Sep 2024 (XBRL filed with NSE) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 14 Oct 2024
- S59Shareholding pattern as on Jun 2024 (XBRL filed with NSE) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 20 Jul 2024
- S60Shareholding pattern as on Mar 2024 (XBRL filed with NSE) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 18 Apr 2024
- S61Shareholding pattern as on Dec 2023 (XBRL filed with NSE) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 19 Jan 2024
- S62Shareholding pattern as on Sep 2023 (XBRL filed with NSE) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 12 Oct 2023
- S63NSE equity bhavcopy (UDiFF), 30 Jun 2026 · NSE · Tier 1: company or exchange filing · 30 Jun 2026
- S64NSE security-wise bhavdata with delivery, 30 Jun 2026 · NSE · Tier 1: company or exchange filing · 30 Jun 2026
- S66General Updates: completion of acquisition of BBY Services India LLP · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 15 Oct 2026
- S67Updates: 'Statement of the Company regarding the announcement by the US Government on the Permanent Labor Certification Program'. · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 9 Oct 2026
- S71General Updates: Press Release titled TCS HyperVault to establish large-scale AI data center campus in Telangana being issued by HyperVault AI Data Center Limited, a subsidiary of the Company. · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 5 Sep 2026
- S72Bagging/Receiving of orders/contracts: Bagging/Receiving of orders/contracts · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 24 Aug 2026
- S73Acquisition: Acquisition · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 24 Aug 2026
- S75Clarification to NSE on news reports, enclosing a statement by N Chandrasekaran, Chairman of Tata Sons (12 Aug 2026) · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 12 Aug 2026
- S81General Updates: Disclosure Under Regulation 30 Of The SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015 · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 16 Jun 2026
- S83Updates: 'Credit Rating'. · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 29 May 2026
- S89General Updates: General Updates · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 9 Mar 2026
- S91Appointment: Appointment of Walker Chandiok & Co LLP, Chartered Accountants as Statutory Auditors of the company. · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 28 Feb 2026
- S95Acquisition: Acquisition · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 14 Jan 2026
- S102Acquisition: Acquisition · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 10 Dec 2025
- S103General Updates: General Updates · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 22 Nov 2025
- S104Agreements: Agreements · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 20 Nov 2025
- S122Updates: 'Intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015'. · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 21 May 2025
- S132Appointment: Appointment of Ms Aarthi Subramanian as Executive Director President and Chief Operating Officer of the company w.e.f. May 01, 2025. · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 10 Apr 2025
- S158Closure of Buy Back: Closure of Buy Back with effect from December 13, 2023 · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 13 Dec 2023
- S164Buyback: Buyback · Tata Consultancy Services Ltd (filed with NSE) · Tier 1: company or exchange filing · 11 Oct 2023
- S172Infosys Ltd: Annual Report FY26 (competitor evidence) · Infosys Ltd (filed with NSE) · Tier 1: company or exchange filing · 30 May 2026
- S173HCL Technologies Ltd: Annual Report FY26 (competitor evidence) · HCL Technologies Ltd (filed with NSE) · Tier 1: company or exchange filing · 20 Jul 2026
- S174Wipro Ltd: Annual Report FY26 (competitor evidence) · Wipro Ltd (filed with NSE) · Tier 1: company or exchange filing · 22 Jun 2026
- S175Tech Mahindra Ltd: Annual Report FY26 (competitor evidence) · Tech Mahindra Ltd (filed with NSE) · Tier 1: company or exchange filing · 23 Jun 2026
Changes to this page (v1 · 25 Oct 2026)
- v1 · 25 Oct 2026First version. (first version)
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