TCS faces $70 million exceptional expense after setback in US legal dispute

TCS will make an additional $70 million provision after the US Supreme Court declined to review its appeal in a trade secrets dispute with DCX Technologies. The expense adds to an earlier $150 million provision related to the litigation

New Delhi: IT services major Tata Consultancy Services (TCS) on Tuesday said it will make an additional provision of $70 million towards damages, interest and legal costs after the United States Supreme Court declined to review a lower court judgment in its long-running legal dispute with Computer Sciences Corporation (CSC) — now known as DXC Technology.

In a regulatory filing, the company said the US Supreme Court denied its petition for a writ of certiorari seeking a review of the judgment passed by the United States Court of Appeals for the Fifth Circuit on June 15.

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The latest development marks another setback for TCS in the litigation involving DXC Technology. TCS said it had already provided $150 million in relation to the matter in its books of accounts in accordance with applicable accounting standards.

Following the Supreme Court’s decision, the company will now make an additional provision of $70 million towards damages, interest and legal costs as a one-time exceptional expense in the first quarter of FY2026-27.

The company had earlier updated investors on the case through regulatory filings in June 2024 and November 2025.

Earlier, TCS had suffered a legal setback after the Fifth Circuit upheld a damages award of $194.2 million and ruled in favour of CSC in a long-running trade secrets dispute. However, the IT services major did not provide further details on the financial impact beyond the additional provision to be recognised in the June quarter.

Meanwhile, shares of TCS traded over 2 per cent higher at Rs 2,208.50 apiece on the BSE on Tuesday. The IT stock has touched a 52-week high of Rs 3,539.45 and a 52-week low of Rs 2,110.00 on the exchange.