TCS Q4 profit rises 12.22 pc to Rs 13,718 crore, margins improve

TCS reported a 12.22 per cent rise in Q4 net profit to Rs 13,718 crore, driven by margin expansion and steady revenue growth. The company added over 2,300 employees, marking a turnaround in hiring after two consecutive quarters of decline

Mumbai: Country’s largest IT services company TCS on Thursday reported a 12.22 per cent jump in its March quarter net profit to Rs 13,718 crore.

The Tata Group company reported a net profit of Rs 12,224 crore in the January-March period last year and Rs 10,657 crore in the preceding December quarter.

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For fiscal year 2025-26, TCS’ PAT inched up 1.35 per cent to Rs 49,210 crore, as against Rs 48,553 crore in FY25.

From a headcount perspective, the company added 2,356 jobs in Q4, taking the overall number of employees to 5,84,519 as on March 31, 2026, marking the first quarter of net addition after two consecutive quarters of decline.

The company’s employee base declined by 23,460 in FY26, a year in which it began an exercise to cut 12,000 jobs due to changes in the technology landscape.

TCS is the first company in the USD 315 billion Indian IT sector to report its earnings for the fiscal year 2025-26, which saw a deepening of artificial intelligence (AI) technologies and subsequent concerns over employee intensity in the sector, which produces some of the best quality jobs in the economy.

In the reporting quarter, its revenue from operations jumped 9.64 per cent to Rs 70,698 crore from Rs 64,479 crore in the year-ago period, while the same for the full fiscal rose 4.58 per cent to Rs 2.67 lakh crore.

The operating profit margin expanded to 25.3 per cent in the March quarter, up from 24.2 per cent in the year-ago period.

Its chief executive and managing director K Krithivasan said this is the third consecutive quarter of sequential growth and added that the momentum was broad-based across major markets and industries.

“While the macro-economic headwinds continue, we see sustained customer conviction in technology investments, which positions us well for the opportunities ahead,” he said.

It signed new deals worth USD 12 billion in the three months, led by North America at USD 5.4 billion and the banking, financial services and insurance business at USD 2.8 billion.

The voluntary attrition stood at 13.7 per cent at the end of the quarter, and the company’s chief human resources officer Sudeep Kunnumal said it will revert to implementing salary hikes across the organisation from April 1 onwards.

Its board has proposed a final dividend of Rs 31 per share, which will have to be approved by shareholders at the annual general meeting.

The company scrip closed 1.09 per cent up at Rs 2,587.75 a piece on the BSE on Thursday, as against a 1.20 per cent decline on the benchmark.