Tata Consultancy Services (TCS) reported a 0.5% year-on-year decline in dollar revenue for FY26 at $30,017 million, while in constant currency terms, it was down 2.4%. This marks the first time the company has reported a decline in dollar revenue growth in any fiscal year, CNBC-TV18 reported.
Even during the Covid-hit fiscal year 2021, the company posted a marginal increase of 0.6%. Growth in four of the last five financial years prior to FY26 has been in single digits for TCS, according to the report.
The company reported rupee revenue growth of 5.4% QoQ, reaching ₹70,698 crore, while constant currency growth stood at 1.2%. For the fiscal year ended March 31, revenue in rupee terms ₹267,021″>rose 4.6% YoY to ₹267,021 crore but declined 2.4% in constant currency terms.
The Indian rupee fell 4% against the US dollar during the March quarter, sliding to record low levels. Software services companies typically benefit from such currency movements, as they bill in foreign currencies while incurring most costs in rupees, boosting reported earnings when dollar revenues are converted.
The $315 billion sector, employing about 5.9 million people, last reported double-digit revenue growth in the March 2023 quarter. Since then, demand has softened as clients cut discretionary spending, deal cycles lengthened, and spending shifted towards cost optimisation and AI-led projects.
The software giant announced its financial performance for the March-ended quarter after market hours on Thursday, with numbers largely coming in line with Street estimates.
The company posted a net profit of ₹13,718 crore for the quarter ended in March, marking a 12.22% increase from the ₹12,224 crore reported in the same period last year, while the same for FY26 improved marginally by 1.35% to ₹49,210 crore, as against ₹48,553 crore in FY25.
The company also announced a ₹31 per equity share”>dividend of ₹31 per equity share. Earlier in January, the Tata Group company paid a dividend of ₹57 per share, which included a special dividend of ₹46 and an interim dividend of ₹11 per share.
Stock slides 20% YTD, lags Nifty’s 9% decline
TCS shares have dropped about 20% this year so far, declining from ₹3,215 apiece to ₹2,589, while eroding ₹2,26,465 crore in market value and bringing its total market capitalisation down to ₹9,36,722 crore.
The decline reflects significant underperformance compared to the 9% fall in the benchmark NSE Nifty 50 Index.
Sentiment around the tech services giant has been weighed down by AI developments, including Meta Platforms Inc.’s latest model launch and Anthropic’s new tools for building AI agents.
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