Forbes India
Indian IT bellwether Tata Consultancy Services (TCS) reported $2.3 billion in annualised Artificial Intelligence (AI) revenues with strong deal momentum marking the end of Q4 FY26.The company reported a revenue of Rs 2.67 lakh crore in FY26 at an annual growth of 4.6 percent. However, dollar revenue growth declined for the first time in the company’s history by 0.5 percent year-on-year at $30,017 million and by 2.4 percent in constant currency terms.Operating income stood at Rs 66,838 crore with an operating margin of 25 percent. The number of $100 million-plus clients went up by two for the year, with an order book Total Contract Value (TCV) of $40.7 billion. BFSI TCV grew to $13.4 billion for the year, maintaining its lead with a 32 percent contribution.During the earnings call, CEO and Managing Director K Krithivasan said that the company was seeing healthy revenue addition after a gap of nearly two years, signalling early signs of stability and growth returning with more mid-sized and large customer accounts falling in place.Krithivasan added that the company continued to see growth in its HyperVault business—a subsidiary aimed at building gigawatt-scale AI data centres in India, incorporated in October 2025. The business includes a planned investment of $2 billion to create compute infrastructure.Also Read: In charts: How India's new labour laws had more worker perks, but less pain for firms“Our HyperVault business has made significant progress this quarter on its journey to build out one gigawatt of capacity. This includes winning customer commitments, land parcel finalisations, and partnering agreements. They are actively engaging across the full ecosystem of hyperscalers, semiconductor companies and model providers, while TCS is the integration partner across infrastructure, engineering, and ALH services,” said the CEO, adding that structured engagements and commitments were falling in place.Calling FY26 a transformational year for the industry due to full-scale adoption of Gen AI, Executive Director – President and Chief Operating Officer Aarthi Subramanian said that TCS was helping its customers with application and infrastructure needs. “While our customers want to accelerate AI adoption, their current enterprise stack lacks the readiness for what it takes to scale. We are working with our customers to address this gap by upgrading their infrastructure to be scalable and secure, modernising their core application and setting up a modern data foundation. Significant part of the technology spend is being invested in these areas,” she added.The company closed the year at a headcount of 584,519, with attrition rising to 13.7 percent. CEO Krithivasan stated that the company had concluded its restructuring process as mentioned. At the beginning of the year, TCS had announced its plans to let go of 12,000 employees or 2 percent of its global workforce based on performance evaluation.Also Read: AI-led growth drives momentum for IT companies in slow Q3The company has also announced annual salary increases across all grades effective April 1, with high performers receiving double-digit hikes.“Our recruitment efforts have been concentrated on individuals with expertise in AI, data enterprise solutions, software engineering, cloud cyber security and digital engineering. In FY26 we also hired over 750 employees with deep advisory and consulting expertise and have stepped up on investments in talent development initiatives as well,” said Chief HR Officer Sudeep Kunnumal on the call.At the end of the day’s trade TCS shares closed at Rs 2,590 on the NSE, marking a gain of 1.2 percent following the Q4 FY26 results.
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