TCS Q4 net profit up 12%; Wipro, Infosys ADRs fall 2%
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- TCS reported 12% YoY growth in Q4 net profit to Rs 13,718 crore, with revenues from operations rising 10% to Rs 70,698 crore.
- TCS bagged three mega deals in Q4 with a total contract value of $12 billion, which analysts flagged as the standout positive on the earnings card.
- TCS said its annualised AI revenue crossed $2.3 billion in Q4FY26, with management framing AI as embedded across core service lines rather than a separate vertical.
- Wipro and Infosys ADRs dropped about 2% in early US trading after the TCS print, suggesting a muted opening for Indian IT stocks when markets reopen Friday.
- CEO K Krithivasan credited AI-led positioning across services for Q4 growth, while COO Aarthi Subramanian called FY26 a pivotal year for enterprise AI adoption with accelerated deployment driving revenue scale.
- CFO Samir Seksaria said TCS continued investing in AI-led growth while maintaining operational discipline, noting AI spending is not yet dilutive to profitability as margins expanded for the year.
- Arihant Capital Markets has an Accumulate rating on TCS, with Head of Research Abhishek Jain noting the stock trades at a PE of 17.6x its FY28E EPS of Rs 147.2 at a CMP of Rs 2,590.
Why it matters: For Indian IT investors, the peer sell-off matters more than the TCS headline beat: Wipro and Infosys ADRs falling 2% on in-line numbers from the sector bellwether signals that $2.3 billion in AI revenue and $12 billion in mega-deal TCV are now the floor, not the catalyst, for a sector re-rating. With AI investments described as not yet margin-dilutive, the market is pricing the AI pivot as table stakes rather than a competitive edge.
