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TCS Reports First Dollar Revenue Decline, But Margins Climb
Tata Consultancy Services (TCS) concluded fiscal year 2026 with its fourth-quarter results, showing mixed performance. While reported revenue for Q4 FY26 grew a modest 1.2% quarter-over-quarter in constant currency (CC), the annual performance marked a turning point. For the entire fiscal year 2026, TCS's constant currency revenue contracted by 2.4%. This marks the first full-year decline in its dollar revenue history.
This contraction contrasts with 4.6% year-over-year revenue growth in Indian Rupees, highlighting the impact of currency depreciation. Despite these revenue challenges, TCS demonstrated strong operational efficiency, achieving its highest operating margin in four years. The operating margin for FY26 stood at 25.0%, a 70 basis point improvement year-over-year, with the Q4 margin reaching 25.3%. This margin growth stemmed from cost management and efficiency, supported by productivity gains and currency tailwinds. These benefits were reinvested or passed on, rather than boosting profit directly.
The company's net profit for Q4 FY26 rose 12.2% year-on-year to ₹13,718 crore, and for the full year, it increased by 1.35% to ₹49,210 crore. This shows a stable bottom line despite revenue pressures. TCS's stock saw a modest gain of 1.16% on April 9, 2026, closing at ₹2,559.2.