TCS Q4 Results Preview: Will Tata Group's TCS Turnaround Its Net Profit In Q4? Dividend Announcement Ahead

Tata Consultancy Services (TCS) will begin the March 2026 quarter season on April 9, 2026. TCS is the first to announce Q4 results compared to its peers. During the fourth quarter, TCS is expected to perform better among Tier-1 tech players, with topline growth to be driven by BFSI, Hi-tech and cross-currency tailwinds. EBIT margins are also likely to improve. However, order book may decline on a year-on-year basis. Apart from Q4 results, TCS is also going to declare a final dividend for FY26.

TCS Q4 Results Expectations:

"We expect topline growth by 2.6% QoQ, led by growth in BFSI, Hi-tech, and cross-currency tailwinds. EBIT Margins are likely to improve by 23 bps QoQ," analysts at Axis Securities said in their note.

Meanwhile, analysts at Kotak Institutional Equities forecast a 1.2% constant currency growth in revenue during Q4FY26, which is likely to be driven by 0.8% on organic basis and 40 bps contribution from Coastal cloud acquisition.

On a geographical basis, earnings in international business is expected to grow faster, while earnings in India could decline mildly. Nonetheless, EBIT margins are expected stable overall.

However, analysts at Kotak believe that TCS could post deal TCV to $9-10 billion, which will be down from Q4FY25.

"Note that the base quarter had benefit of a large deal renewal. Deal TCV will likely decline 22% yoy and stable on qoq basis. Note there was no mega-deal closure in the quarter. Focus will be on company's renewed aggression and investments to accelerate growth," said analysts at Kotak.

For the October-December 2025 quarter, TCS reported a consolidated net profit of Rs 10,657 crore, registering a decline of 11.74% QoQ and 13.91% YoY basis. The profitability took a major hit due to the statutory impact of new labor codes to the tune of Rs 2,128 crore in the quarter. In terms of top-line front, TCS garnered Rs 67,087 crore as revenue from operations in Q3FY26, registering a growth of 1.97% QoQ and 4.87% YoY.

In Q3FY26, on constant currency basis, the revenue growth stood at 0.8% sequentially. Meanwhile, annualized AI services revenue came in at $1.8 billion, registering an upside of 17.3% QoQ in constant currency.

TCS Q4 Results Key Focus Areas:

In Kotak analysts opinion, investors should focus on:

(1) progress in agentic AI in the past three months and whether than leads to change in AI deflation assumption,

(2) timeframe for convergence of growth with peers and that the
factors that may drive the same,

(3) impact of GCC ramp-up on growth of companies and GCC as a
growth lever,

(4) progress on planned data center investments,

(5) areas of strategic importance for
inorganic investments, especially after a couple of acquisitions in the past two quarters and

(6) margin aspirations in light of elevated competitive intensity.

TCS Final Dividend:

As per the regulatory filing, TCS has proposed to consider final dividend for FY26 on April 9. The record date and payment date will be announced on Thursday most likely.

If the final dividend is approved, then it would come after special dividend of Rs 46 and third interim dividend of Rs 11 per share payout in January 2026. TCS also delivered second and first interim dividends of Rs 11 each in October and July last year.

So far, in the past 12 months, TCS has delivered up to Rs 109 dividend per share. Its current dividend yield is at 4.26%.

TCS Share Price:

Ahead of the earnings, TCS share price stood at Rs 2559.80 apiece on BSE, up by 0.8% on April 8 with market cap at Rs 9,26,158.04 crore.

BUY TCS Stock?

Analysts at Kotak have recommended BUY with target price at Rs 3,090. Meanwhile, analysts at Centrum have also recommended BUY with target price of Rs 4,457.

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