Tata Consultancy Services FY26 profit rise and dividend cut narrows Tata Sons cash flow

Tata Consultancy Services reported consolidated revenue of ₹267,021 crore for FY26, a 4.6% increase year‑on‑year, with net income of ₹52,820 crore and an operating margin of 25%, the highest in four years. The company highlighted an annualised AI services revenue run rate of $2.3 billion and signed contracts worth more than $40.7 billion during the year. Its shares rose about 1.9% on the Indian stock market as IT stocks rebounded.

The FY26 dividend was set at ₹110 per share, down from ₹124 in FY25, resulting in Tata Sons – which holds roughly 71.7% of TCS – receiving approximately ₹28.3 billion, compared with ₹32.2 billion the previous year. The lower cash payout impacts the holding company’s ability to fund group investments such as Air India, Tata Digital and Tata Electronics.