Thank you, operator. Good evening, and welcome, everyone.

Thank you for joining us today to discuss TCS's financial results for the fourth quarter and full year FY 2026 that ended on March 31st, 2026. This call is being webcast through our website, and an archive including the transcript will be available on the site for the duration of this quarter.

The financial statements, quarterly fact sheet, and press releases are also available on our website. Our leadership team is present on this call to discuss our results.

We have with us today Mr. K.

Krithivasan, Chief Executive Officer and Managing Director.

Hi, everyone.

Ms. Aarthi Subramanian, Chief Operating Officer and Executive Director.

Good evening, everyone.

Mr. Samir Seksaria, Chief Financial Officer.

Hello, everyone.

Mr. Sudeep Kunnumal, Chief HR Officer.

Hello, everyone.

Our management team will give a brief overview of the company's performance, followed by a Q&A session. As you are aware, we don't provide any specific revenue or earnings guidance, and anything said on this call which reflects our outlook for the future or which could be construed as a forward-looking statement must be reviewed in conjunction with the risks that the company faces.

We have outlined these risks in the second slide of the quarterly fact sheet available on our website and emailed out to those who have subscribed on our mailing list. With that, I would like to turn the call over to Krithi.

Thank you, Nehal. Good day, everyone, and thank you for joining us today.

I would like to open with five key messages for the quarter and the year. First, about Q4.

We are very pleased to announce the third consecutive quarter of sequential growth. We delivered a strong 1.2% sequentially on a constant currency basis in the backdrop of intensifying geopolitical conflicts and macroeconomic uncertainty.

This momentum was broad-based across major markets, with North America growing 1.4% Q-o-Q, UK growing 2.4%, and Europe growing 1% on CC basis. Most of the industry segments also grew.

Our order book performance was also very strong in Q4, with $12 billion in TCV, including three mega deals, win from Marks & Spencer, a leading telecom operator in UK, and a leading American healthcare and pharmacy chain. This underscores the strength of our five-pillar strategy and our AI-led positioning across services.

The second key message is on our client metrics. You will see from the fact sheet that every revenue band saw healthy additions this quarter after a gap of about two years.

This speaks to the early signs of stability and growth returning to our mid-sized and large accounts. The number of accounts where we generate more than $100 million annually increased by 4 quarter-on-quarter, bringing the total to 66.

We added three more clients in the $50 million band, bringing the total to 139, and 14 more clients in the $1 million+ band, bringing the total to 1,397 from last quarter. The third message is on the announcement of salary increments.

We announced salary increment for all eligible associates across all grades, effective 1st of April. Fourth, the momentum we see in our AI services.

This continues to accelerate very impressively, standing at $2.3 billion on an annualized basis. Lastly, the promise we see in our Hypervault business, which has made significant progress this quarter on its journey to build out 1 GW of capacity.

This includes winning customer commitments, land parcel finalizations, and partnering agreements. We are actively engaging across the full ecosystem of hyperscalers, semiconductor companies, and model providers, while TCS is the integration partner across infrastructure, engineering, and AI-led services.

Demand signals remain strong and are translating into structured engagements and commitments, positioning TCS at the forefront of this build-out. As we progress, this infrastructure layer is forming the foundation of TCS's full-spectrum play for infrastructure to intelligence.

Coming to our full-year performance, even though our FY 2026 revenue declined by 2.4% in constant currency, we delivered a strong $40.7 billion in TCV, including five mega deals. We maintained a strong focus on execution to deliver an operating margin of 25%.

This is the highest operating margin achieved in the last four years. As enterprises navigate increasing complexity across technology, operating models, and business transformation, the role of trusted system integrators has become even more vital.

Clients are looking for partners who can bring deep technology excellence, strong enterprise and industry context, and take end-to-end accountability with confidence on the outcome and ROI. In FY 2026, TCS was uniquely positioned to meet these expectations through sustained investments in AI-led engineering, a highly skilled and scalable talent base, differentiated solution, and a strong partner ecosystem.

This has translated into the major highlights I talked about earlier: broad-based client additions across revenue bands, strong TCV, and continued momentum in large deals, with clients showing greater willingness to commit to long-term, multi-year, multi-million-dollar partnerships, reflecting the trust they place in TCS to deliver certainty on value at scale over extended transformation journeys. I will now invite Samir, Aarthi, and Sudeep to go over different aspects of our performance during the quarter.

I'll step in later to provide more color on the demand trends we are seeing in our key verticals and our outlook for the next year. Over to you, Samir.

Thank you, Krithi. Good day to all.

I'll start with the commentary on the recent quarter and then proceed to the full-year numbers. In the fourth quarter of financial year 2026, our revenue was ₹70,698 crore, which is a quarter-on-quarter growth of 5.4%.

In dollar terms, revenue was $7.621 billion, a quarter-on-quarter growth of 1.5%. In constant currency, we had a sequential revenue growth of 1.2%.

Our Q4 operating margin stood at 25.3%, a sequential increase of 10 basis points. During the quarter, we saw an improvement in realization driven by continued focus on value-led delivery.

Currency was also supportive during the quarter, providing a translation tailwind. These factors contributed to a benefit of around 40 basis points and 110 basis points, respectively.

Consistent with the Build, Partner, Acquire strategy that we shared at our Analyst Day, we consciously reinvested these tailwinds back into strengthening our capabilities and growth engines. Under Build, we saw higher external consultant costs of 40 basis points to capture the demand and to ensure delivery timelines and quality were protected while we continue to scale internal capabilities.

In parallel, we made targeted interventions in critical talent, certifications, upskilling, and creation of niche delivery pods. These investments are aimed at building a scalable, future-ready AI delivery model that straddles the entire stack across our infra to intelligence strategy layer.

Also, the ongoing impact of India wage code is included. Together, these two accounted for an impact of 40 basis points.

Under Partner, we stepped up investments in ecosystem partnerships, reflected in multiple announcements such as OpenAI, AMD, and ServiceNow made during the quarter. These investments are focused on industrializing AI solutions, increasing cross-sell opportunities, and improving speed to value for clients through deeper hyperscaler and platform collaborations.

We also increased go-to-market activity with higher participation in client events, showcases, and industry forums. This is directly linked to expanding demand pipeline and improving conversions by demonstrating our AI and platform-led offerings.

Together, these two accounted for a margin impact of 50 basis points. Finally, aligned to Acquire, we incurred integration-related investments of approximately 10 basis points as we embedded acquired capabilities in our operating model.

This included talent alignment, platform integration, go-to-market enablement, and delivery readiness, all aimed at accelerating synergy realization and scaling new offerings. Net margins for Q4 were 19.4%, and our EPS grew 12.2% year-on-year.

Our accounts receivable stood at 74 DSO in dollar terms for Q4, down two days sequentially. Our cash conversions this quarter continues to be strong, exceeding 100% of our net profits.

Net cash from operations was $1.6 billion, which is 106.7% of our net income. Invested funds at the end of the period stood at $5.3 billion.

Coming to the full year FY 2026, our revenue was ₹267,021 crore, which is a growth of 4.6% on a year-on-year basis. In dollar terms, the reported revenue was $30.017 billion, a decline of 50 basis points.

In constant currency terms, revenue declined 2.4% on an annual basis. For FY 2026, our operating margin was 25%, an expansion of 70 basis points over the prior year and a four-year high.

In FY 2026, our investments in talent and capability building led to a 200 basis points headwind. We also incurred an additional 100 basis points headwind on account of other investments from strengthening ecosystem partnerships and increasing our GTM pipeline.

We successfully mitigated these by improving our business mix, productivity, and realization by 100 basis points. Rebalancing of pyramid helped by 80 basis points, and support from currency also benefited margins by another 190 basis points.

The operating margin for the year excludes a few one-offs recognized during this year. These exceptional items relate to severance-related expenses, legal provisions, and the impact of changes in India wage code.

Net margins for FY 2026 were 19.8%, and our EPS grew 8.8% year-on-year. Effective tax rate for the year was 24.6%.

Going forward, we continue our investments to maximize growth. Our operational rigor will continue to focus on optimizing margins, robust cash conversion, and strengthening the balance sheet.

We remain firmly committed to returning substantial free cash flows to our shareholders through a consistent and shareholder-friendly dividend policy, while prudently expanding investments under the Build, Partner, Acquire framework to strengthen long-term growth. The board has recommended a final dividend of ₹31 per share, taking the total dividend in the year to ₹110.

I'll now invite Aarthi.

Thank you, Samir. Good evening to all of you.

FY 2026 was a pivotal year for enterprise AI adoption across industries. For the first time since the advent of GenAI in late 2022, the shift from experimentation to scaled AI deployment showed a marked improvement.

AI became a core part of our every customer conversation and solutioning, creating a tailwind for enterprise AI adoption. In Q4, our annualized AI revenue surpassed $2.3 billion, driven by the accelerated deployment of AI solutions across industries.

We experienced strong deal momentum across new services in enterprise transformation, digital engineering, and cloud modernization. Our Hypervault business has made significant progress since the announcement in October 2025.

Last quarter, I spoke about our two-pronged approach to engaging deeply with our customers on AI: one, to help them get ready with AI, and two, to partner with them to lead with AI. Let me share some more detailed updates on both of these areas.

While our customers want to accelerate AI adoption, their current enterprise stack lacks the readiness for what it takes to scale. We're working with our customers to address this gap by upgrading their infrastructure to be scalable and secure, modernizing their core applications, and setting up modern data foundations.

Significant part of the technology spend is being invested in these areas. Let me share a few examples.

TCS modernized mission-critical crew management systems with generative AI for a European airline. We reverse-engineered complex legacy systems to reconstruct the core business logic embedded in these systems.

This modernization was powered by Google Gemini platform. The airline now has a scalable foundation to build new-age crew operations solutions.

For a car rental company in US, we executed a complex, high-stake legacy data warehouse migration, moving over 20 TB of mission-critical data to a modern data platform. This program decommissioned their legacy systems, delivering an estimated $2.5 million savings, but more importantly, it established a scalable data foundation for them to get ready for AI.

To help our customers implement AI in their own context, we have created an AI acceleration playbook: Innovate with AI, Build with AI, and Scale with AI. This year, we deployed this playbook across a significant number of our customers to solve high-value business problems in rapid deployment cycles of 12 to 16 weeks.

For a leading utility company in the US, we conducted CXO-level AI immersion programs to identify challenges that can be best solved with AI. We also built their enterprise AI platform, which provides a secure, scalable foundation to industrialize AI adoption.

Physical AI deployment is also gaining traction in industrial sector. Digital twins, computer vision, quadruped-based solutions are driving efficiencies, throughput, and safety.

For an electronics manufacturer in the fabrication facility, we are integrating NVIDIA Omniverse-driven digital twins with autonomous quadruped-based inspection systems. This physical AI solution is driving better construction accuracy and proactively identifying safety hazards.

Redefining every service line is central to our five-pillar strategy. TCS has created a Services Redesign Framework, which we call our Human+AI Service Autonomy Model.

This model integrates service line-specific industry-leading tools which are integral to delivering value in the customer context. This is resonating well with our customers as it provides well-defined framework for consistent deployment across the enterprise.

We are taking AI-led redesigned services proactively to our existing customers and new prospects. In last two years, AI model capabilities have evolved tremendously and rapidly.

Yet, there is a gap in enterprises realizing the true potential of these technologies. One of the challenges our customers face is that they have invested in these tools but not yet reaping the expected productivity benefits.

Our goal is to systematically help our customers address these gaps with our Human+AI Service Autonomy Model. For a retailer in UK, we deployed the AI engineering framework with agents through the software life cycle from translating unstructured requirements into structured specifications, as well as executing spec-driven coding, testing, and deployment.

Our human-plus-AI approach accelerated software delivery and reduced the deployment cycle time by about 40%. Business process services is becoming a fast adopter of agentic AI.

We're working with multiple customers on their AI-led GBS transformations. For a steel major, TCS proactively deployed AI agents in procurement rate management process, resulting in order-to-invoice cycle reducing from 28 days to under 10 days.

In FY 2026, all next-gen services delivered strong growth across industries and markets, backed by our continued investments in AI talent and innovative solutions. In FY 2026, we invested significantly in strengthening our AI partnerships.

This includes enterprise partners, hyperscalers, deep tech, AI-native partners, and domain-specific partners. In Q4, we forged several strategic partnerships that have expanded our joint collaborations.

This includes our partnership with ServiceNow, Google Cloud, and with NVIDIA. With OpenAI, we announced a partnership spanning multiple high-impact areas: empowering Tata Group employees with ChatGPT Enterprise, building industry-specific agents, joint go-to-market initiatives, and creating a state-of-the-art AI infrastructure.

Finally, I would like to provide an update on TCS Hypervault. Our engagements with hyperscalers and frontier AI model companies have moved beyond early exploration into design alignment, security frameworks, site due diligence, and commercial structuring.

We see the demand converging around large anchor AI workloads in the 100 to 200 MW range per customer. Hypervault has aligned a deep partner ecosystem including Tata Power, Tata Projects, Tata Communications, as well as GE, Honeywell, ABB, Siemens, and many of our customers to cover EPC, power, cooling, controls, networks, and security and many such areas.

Some of the key announcements we made this quarter, as I said earlier, is the OpenAI partnership to build 100 MW capacity with an option to scale to 1 GW. In collaboration with AMD, we're combining their world-class Helios rack-scale AI architecture with Tata Group synergies to create high-density AI capacity in India.

We also signed an MoU with ABB to strengthen joint collaboration across IT infrastructure, applications, digital and industrial AI initiatives, as well as data centers and other emerging technologies. In summary, FY 2026 saw a good momentum on AI and new services.

As we move into FY 2027, we will continue to accelerate deployment of our five-pillar AI strategy. We are well-positioned to support our customers with the deep knowledge of the enterprise context that we possess and our ability to integrate AI into the customer business and technology landscape to create customer value.

Thank you. I would now like to hand it over to Sudeep.

Thank you, Aarthi. Hello again, everyone.

At the outset, I would like to thank all our employees and their families stationed in West Asia for their utmost dedication and resilience during these tough times. All our employees and their families in the Middle East are safe, and we are in constant touch with them providing the necessary support.

At the end of March 2026, our global headcount stood at 584,519, with associates from 149 nationalities, of whom 35.2 percentage are women. We have announced annual increments to all eligible employees across grades effective April 1st, with top performers getting a double-digit increase.

We are focused on building a future-ready organization by strategically hiring both fresh graduates and experienced professionals. Our recruitment efforts have been concentrated on individuals with expertise in AI, data, enterprise solutions, software engineering, cloud, cybersecurity, and digital engineering.

In FY 2026, we also hired over 750 employees with deep advisory and consulting expertise. We stepped up our investment in talent development initiative as well.

In FY 2026, a total of 69 million learning hours has been completed and 5.2 million competencies have been attained by our associates. Over 470,000 associates now possess advanced proficiencies in AI and machine learning.

TCS demonstrates its commitment to innovation by being its own Customer Zero, adopting and refining AI technologies across internal HR practices before deploying them externally. Within the human resources function, we are embracing AI as follows: Nearly half of the internal resource allocations occurs through our internal talent marketplace, which uses AI-driven recommendations to match demand and supply.

Our GenAI-powered learning coach platform has helped over 100,000 TCS employees improve their proficiencies through targeted, role-specific learning. Our GenAI-enabled interviewer accelerates hiring with technical assessments, while our AI recruitment platform enhances post-offer engagement to help answer very specific queries.

The AI assistant provides instant, multilingual, contextual HR policy support, improving employee experience. We have further strengthened our position as employer of choice globally and are pleased to have been recognized as an enterprise-wide top employer for the 11th consecutive year by the Top Employers Institute, reflecting our commitment to foster an inclusive and engaging workplace where our people can thrive and grow.

I would now like to invite back Krithi.

Thank you, Sudeep. Scaling enterprise AI adoption requires organizations to address technology debt, data readiness, and operating model complexity.

AI will enable clients to rapidly move from end-customer feedback to demand identification to code. With every tech cycle, clients have realized far greater value and TCS has scaled its business.

With AI, TCS aspires to be the world's largest AI-led tech services company. This aspiration is powered by capitalizing on AI-led renewals, vendor consolidation, and cost optimization deals, resulting in market share gains; using new-age services and adjacencies that enable enterprises to get ready for AI; becoming a full-stack AI services player, that is infrastructure to intelligence, thereby delivering maximum ROI to clients on their AI investments through end-to-end industry value chains reimagination; and building new revenue streams such as building AI infrastructure.

In FY 2026, we made good progress across all the above opportunities. The strong order book closure was led by vendor consolidation, AI-led modernization, scaling AI across enterprise, digital core and digital core and data platform modernization, operating model transformation, and regulatory compliance.

Let me share now share some specific details of our industry-wise performance during this quarter. In BFSI, the BFSI vertical continued to grow this quarter.

In BFSI, client-specific demand remained tech remained technology-led and outcome-focused through Q4, shaped by heightened macro and geopolitical volatility. Increased uncertainty around interest rates, inflation, and central bank actions influenced client sentiment, resulting in cautious investment decision-making.

Despite this backdrop, BFSI clients continued to prioritize core and legacy modernization, data estate transformation, cloud migration, and scaled AI/GenAI deployments, productivity-led operating model transformation, and vendor consolidation. Spending patterns increasingly shifted from experimentation to industrialized, business-driven transformation with a strong emphasis on cost discipline, regulatory resilience, and measurable outcomes.

Our Consumer Business Group saw another quarter of good growth, supported by market share gains and emerging pockets of technology conviction, resilience, and guarded optimism. Retail globally and TTH in UK and MEA led the growth, while CPG and TTH North America segments declined.

Enterprises continue to tightly align spending to initiatives delivering near-term efficiency, cost control, and operational resilience, with growing emphasis on vendor consolidation, technology simplification, legacy modernization, and selective AI and GenAI adoption. CBG had two mega deal wins this quarter, which helped propel its TCV to an all-time high.

One of the two mega deals was a renewal and expansion of our services to Marks & Spencer, a customer of TCS for well over a decade. The deal is a testimony to the deep trust and strong partnership between the two organizations.

The other mega deal is a leading American healthcare and pharmacy retailer, with another long-standing and trusted strategic partnership of TCS that we are proud to be we are very proud to have retained this particular partnership as well. Clients are appreciating TCS's track record of successfully delivering transformation programs more than ever.

An excellent example is what we are doing for this pharma retailer. For them, TCS partnered with the to modernize its mission-critical claims processing system.

Operating at a massive scale, processing over 5 million prescriptions daily, the platform underpins core pharmacy operations including claims validation, accumulation and track tracking of patients' out-of-pocket expenses, ordering, replenishment, and reporting. As prescription volumes continue to rise, the legacy architecture began to limit performance, real-time visibility, and scalability, creating operational bottlenecks across the ecosystem.

Leveraging deep domain expertise and contextual knowledge, TCS reimagined process flows and led the comprehensive cloud-native re-architecture of the platform. The transformation introduced event-driven processing, complex multi-system integration, and world-class enterprise-grade security to ensure resilience and compliance.

This has enabled near real-time processing, compressing claims cycle from 48 hours to just 12 hours; data-driven decisioning leveraging AI; and auto-scaling to support growing prescription volumes and rapid onboarding of new entities, positioning the client for sustained future growth. Now let me talk about our Life Sciences and Healthcare group, which saw a marginal growth this quarter.

Healthcare payers are managing rising costs and growing friction with providers due to prior authorization and claims issues. Key priorities there include affordability, transparency, simplicity, and better patient experience.

Organizations are focusing on data marketplaces, cyber resilience, and AI to boost productivity, while regulatory changes add to compliance costs and administrative burdens, prompting selective modernization focused on efficiency. The pharmaceutical industry is streamlining pipelines and adopting AI to tackle growth and pricing pressures.

Companies in the Americas and UK and EU are focusing on efficiency through vendor consolidation, tech modernization, and enterprise-wide transformation. The Manufacturing vertical also saw good growth this quarter despite the macro uncertainties and the impact to the global supply chains.

Client demand across manufacturing remained cautious in Q4, shaped by macroeconomic uncertainty, tariff volatility, recalibration of EV demand, and continued restraint in cap capital expenditure across automotive, industrial, and chemicals. Customers prioritize near-term cost optimization and operational resilience, with sustained focus on AI-led productivity including predictive maintenance and quality automation, alongside ERP and cloud modernization to streamline operations and improve reliability.

The Technology and Software segments saw reasonable growth this quarter given the environment. Client demand in Q4 remained disciplined amid a challenging macro environment, shaped by heightened geopolitical tensions, tariff-related uncertainty, and increasingly stringent manufacturing and data sovereignty requirements.

Customers continue to prioritize cost rationalization to fund a strategic pivot towards AI-led transformation, with spend focused on vendor consolidation, GCC expansion, and structural efficiency, and the resulting savings reinvested into scaling AI across core operations and product portfolios. Incremental investments were also directed towards digital sovereignty and supply chain resilience.

CMI saw a modest decline this quarter, but we are witnessing promising signs of a rebound in IT spending in CMI. Telecommunication companies are advancing their journeys to expand into adjacent businesses while simultaneously enhancing the efficiency of their core operations.

This strategic shift is paving the way for growth and innovation. Momentum remains strong in securing large deals within the telecommunication telecom telecommunication sector.

We have signed our first mega deal in CMI this quarter, a significant expansion of its long-standing partnership with a leading UK-based telecom operator. This five-year contract will see TCS lead the operator's comprehensive IT transformation IT transformation journey for its consumer business, leveraging advanced AI, cloud, and digital engineering capabilities.

The expansion builds on the strength of years of trusted partnership and demonstrated delivery. We'll see TCS take end-to-end responsibility for running the entire IT system of the operator's consumer base and become its strategic technology partner, consolidating the entire landscape previously spread across multiple service providers.

ERU demonstrated robust growth this quarter. Within ERU, the Energy and Resources segment performed well, led by supply chain modernization initiatives gathering momentum in the near term.

However, the Utilities segment is experiencing stress, and significant cost optimization opportunities are opening up. In summary, even in a year marked by global uncertainty, we have demonstrated resilience, discipline, and the ability to lead through complexity.

Our performance in FY 2026 reflects not just strong execution, but enduring trust from clients who are committing to longer-term partnerships and from associates who continue to drive transformation at scale. With robust order book, expanding client relationships across revenue bands, accelerating AI momentum, and foundational investments like Hypervault, we are building the next phase of TCS with conviction.

As enterprises increasingly seek partners who can deliver certainty, accountability, and outcomes end-to-end, TCS stands exceptionally well-positioned, combining technology excellence, deep contextual knowledge, and scale to help our clients navigate change and create sustainable value. We enter the new year with confidence, clarity of purpose, and an unwavering focus on delivering growth with resilience and trust.

With this, I will now open the lines for questions.

Hi, Krithi. Thanks for the opportunity.

My first question: is there any perceivable change in quantity or quality of client inquiries or even bookings around agentic AI implementation post first week of Feb when Anthropic announced a string of agentic AI launches?

Sudheer, I won't say there is. Definitely clients are curious to know about the capabilities and expanding capabilities of all the models, and they also want to leverage their models to achieve their both productivity as well as business value chain reimagination.

Is it because post Anthropic, I won't say that. As the model capability improve, there'll be more and more interest in seeing how they can leverage.

Client interest and demand actually increases with new capabilities coming out of the model providers.

Fair enough. The second question, many of these frontier model companies, they are just announcing a new project or agent, which may be in their development pipeline, but not yet launched, the latest example being Claude Metos.

Is this in any way leading to clients sort of deferring their existing IT spends to maybe wait and watch once the product actually hits the shelf maybe a few months or a year down the line?

We have not seen that, Sudheer. As I said, our clients are quite interested in leveraging AI.

They know this will be constantly evolving, and there is no major benefit in waiting for the next best model to come. Clients are willing to invest now, and we have been helping them with a overall philosophy of their architecture is built for change.

We are helping them in building that architecture so that they can exploit and leverage the models as they come in. Perfect.

Last question from my side. How do we think of FY 2027 growth given the exit run rate and where our order booking is and also expectations around some AI-led deflation?

As you also mentioned, we have a good order book getting into FY 2027. We have strong three mega deals booked in this quarter.

As we also described, most of the industry verticals we see a positive momentum, and our new-age services are also gaining traction. Overall, we are getting into our next year with a lot of positivity and confidence.

Thank you. That's it from my side.

Thank you, Sudheer.

Hey, hi. Good evening, and thank you for taking my question.

My first question, Krithi, was around what you were just talking about, that getting into FY 2027, we are exiting at a healthy growth. We are also exiting with bulk of multiple mega deals, and across verticals as well, it seems like demand has started improving, at least growth for TCS has started improving.

Would you call out and say that we should start getting back to 3%, 4% sort of a growth in the international business where we used to be, or better than that, or the recovery is going to be far more gradual this year?

Kumar, I don't want to put a number, but I would say that again, as I was telling Sudheer, we are quite positive about FY 2027, quite positive about the international growth.

Got it. Thanks for that.

My second question was around margins. SG&A, the second half has been elevated.

Is this the new normal we should now start looking at, or it should normalize back to below 15% where it used to be? Yes.

As we have been investing on the Build, Partner, Acquire strategy, and incremental investments like on partnerships, on recruitment and training, on the new businesses are all reflecting on the SG&A side. Some part of it will see an elevated both on the absolute amount as well as a percentage of revenue.

Got that. Just for a clarification, our restructuring is done, or there's more cost associated to that that has to come through?

If you look at Q4, we have not called out any one-offs. It is business as usual.

There is a restructuring charge which you have booked in the quarter, right?

We have not called off any one-off, that one-off we had called off was only in Q3 of about 1,300 combined for the year is ₹1,300 crore. No one-offs in Q4.

Kumar, just to get the clarity, to be specific, the program that we started, we have completed that program. The program towards restructuring has been completed.

Got it. Perfect.

Thanks a lot for that.

Hi. Thanks.

Krithi, just firstly on the next few quarters, can we expect the similar type of seasonality going forward or because the reason I'm asking is there's not been much headcount additions. The typical seasonality of better first half, does that still work going forward?

See, I don't know what you mean by seasonality. Essentially, more likely to be regular Q1, regular Q2 that we are used to seeing is the way we are looking at as we stand now, Yogesh.

No, Krithi, I was asking so usually the first and the second quarter are stronger than the fourth, right?

That is what I'm saying. Our planning assumption is along those lines only.

Great. Secondly, just going back to this AI stuff, usually in the past, you had all these relationships and partnerships with software companies like SAP and all these diamond, platinum ratings.

Can you talk a little bit about what are these partnerships with the AI models, especially Anthropic, what is the level of tiering with them, and does it really matter anymore? Thanks.

No, Yogesh, I think with all the model companies, we are building strategic partnerships. We have announced with OpenAI.

We are already working significantly with Anthropic and we'll be announcing strategic partnerships with them in the near future. We're very closely working with Mistral.

With all model companies, it's extremely important for us to build the strategic partnership. I would say that we're all trying to shape these partnerships differently than the traditional GTM partnerships of the past.

We want to make them 360-degree partnerships. One is because of our investment in Hypervault, we have very unique opportunity where they can become our customers.

You saw the announcement that we made with OpenAI where there is a committed capacity of 100 MW and the opportunity to grow that to 1 GW. Similar conversations are opportunities with these model companies and hyperscalers.

That's one new pillar of collaboration, right, of strategic collaboration. Apart from that, using their products, right, ChatGPT Enterprise, we made an announcement, using Anthropic Claude.

That's the second pillar of collaboration. Third is industry-specific solutions with them.

The fourth one is again GTM, very specific GTM motions, which is very sort of what you take away from how we do strategic partnerships of the past. That definitely is a pillar.

This again, like I said, we're trying to shape these partnerships differently, more deep, more strategic, and value for both.

Got it. Thank you.

Thank you so much.

Hi. Good evening.

Thank you for the opportunity. Krithi, initially you mentioned some caution in BFSI during the quarter.

Just wanted your thoughts on how clients are actually thinking about spending going forward considering the macro. Do you think this ends up like last year where you had deliberation day and we thought we were probably getting into a good start, but then you had all these headwinds?

In the context of what you see today, what are the conversation with clients? Will be great to have your perspective there maybe across a few key sectors at least.

See, at this time, if you look at our direct impact from the geopolitical situation so far has been restricted to Middle East and to some extent into our travel and transportation industry. We have not seen major impact in other industries so far.

Nitin, as you would know, if things continue and if it results in further supply chain disruption or any other secondary issues, it may have an impact. At this time, I think the impact will be limited to our travel and transportation and probably the work we do in Middle East.

We have not been hearing any other specific concerns from our clients in other industries or other geographies.

The caution that you mentioned was very geo-specific, it's not a broad-based caution? Also,

yeah, that's correct, yeah.

Sure, perfect. That's very helpful.

The second is from a margin perspective, how should we think about margins going forward? Because on one hand, you do have the currency giving you a tailwind, and on the other side, you have to invest on capabilities and multiple other things.

Just how should we broadly think from a margin perspective as we get into the next year?

Nitin, we are exiting FY 2026 at a four-year high on annual margins at 25%, and we see continued positive momentum. Our focus will be to ensure growth with profitability, we'll not be shying away from making the right investments for ensuring strategic growth.

If you look at stepping into FY 2027, the immediate headwinds would be the annual increments which we have talked about. Also, as you rightly mentioned, we'll continue our focus on the Build, Acquire, and Partner framework, and investments around that would be part of it, while some of those we would want to mitigate through better operational rigor in terms of the usual levers which we have called out, and also look at optimization on some of the non-employee expenses.

As you rightly called out, the rupee depreciation does help, not guaranteed always. Overall, we'd want to balance it and keep within a tighter range.

We'd like to move towards 26%, but on a longer-term basis.

Perfect. That's helpful.

Just one last from my end. Overall, coming out of last year and getting into the next, do you believe that all known client-specific headwinds are behind and we should see better revenue accretion from deal wins and from a deal win momentum perspective as well, do you think that that is on an accelerating trajectory?

That's the last one. Thank you.

By and large, most of the headwinds we know probably are behind us, excepting few that may come up or that we have already accounted for. At this time, we are not expecting of course, nobody can predict what will happen down the line, but I think most of the issues are behind us.

That's helpful. Thank you so much, and all the best.

Thank you.

Hi. Thanks for taking my questions.

Just two questions from my side. One is, Krithi, we mentioned our AI revenue to be around $2.3 billion annualized.

That's basically almost 6.5% to 7% of our total revenue. Just wanted to basically understand, if I were to draw a parallel to the last digital cycle, there also I think after a certain stage we had started quantifying our digital revenue, and the way we saw that cycle play out is that initially there was cannibalization of revenue and at the same time we had growth from the digital revenues, and gradually the growth from the digital revenue was able to more than compensate the cannibalization of revenue.

Are we seeing a similar trend this time? Do we expect a similar cycle to follow this time also, that there are productivity gains that we are passing on to the clients because of which we are losing out revenue, on the other hand, your $2.3 billion is going to grow much strongly, and at some point of time in the coming quarters will probably reach an inflection point?

Is that a good way to look at the GenAI cycle? How similar or different would it be from the last cycle?

That would be really helpful.

See, structurally what you are saying is correct. I don't know whether it will be the same time period in which the whole thing will change, but otherwise structurally what you're saying is correct.

You'd expect the AI revenues to increase. You'd expect some of the traditional revenues to slowly taper down and AI revenue to overcompensate for the reduction in the revenue in other service lines.

Timelines probably can vary. I'm not able to predict the timelines on how all these different cycles will move.

Aarthi, you want to add?

Yes. Thank you, Krithi.

Vibhor, if I may just add to that, when you look at, here to compare to the digital transformation that you alluded to, where is the transformation budget, right, largely bucketed as AI going, right? There are three buckets.

One is enterprise transformation. There is still lot to be done on digital which is still to be done in companies, whether it's cloud adoption, migrating to cloud, data modernization, cybersecurity, enterprise systems upgrade, whether it's S/4HANA, Salesforce.

All those are ongoing, right? That's a transformation bucket.

The second one, which is very purely AI-led, is the modernization opportunities that we see. Tech debt reduction was always a priority, but that was always postponed by enterprises because it would take long, it would cost a lot, but I think AI is playing in there and helping customers clear tech debt better, faster.

That's begun, long way to go, but that's the second sector of opportunity. The third is the pure play AI transformation, what Krithi earlier alluded to as industry value chain transformation, where you're really doing AI engagements that create direct business impact.

Got it. That was really helpful, Aarthi.

Krithi, one more question from my side. It's probably more at a strategy level, maybe you and basically the team can answer on that.

If you look at FY 2026, we ended the year at -2.5% CC Y-o-Y decline. If I compare our revenue growth this year with our closest competitor, the difference would be almost 5 to 6 percentage points.

This probably the widest that the gap has ever been. On the other side, our margins are very, very strong, probably one of the highest margins that we have and we of course remain at the highest margin level in the industry.

We are very strong in margins while the entire industry is facing a lot of margin pressure. What is the company-level strategy at this point of time?

We want to continue to focus on the profitable growth part? Have we ever discussed about that should we be ready to compromise a bit of margins to maybe boost growth?

What is the direction in which the board and the management is thinking in terms of balance between a better growth and margin?

Vibhor, I get the question. One, fundamentally we believe our focus on margin is not affecting our revenue growth.

Of course, at the same time, in fact, we believe a good margin we have gives us greater flexibility to approach new deals and be more competitive in gaining market share. We have probably been able to prove that time and again.

It's not that we don't lose deals on pricing. We work with our customers, we ensure that we give the best solution, and we've been able to win deals.

This is our overall thesis. We believe margin and growth are not conflicting with one another.

We should be able to do well on both. We continue to stay close to our customers.

We continue to invest. The margin we have helps us to invest like what you saw in the last two acquisitions and the investment on Hypervault.

They are all possible because we are able to generate margin and gives us ability to invest for growth. We don't believe these are at loggerheads with one another.

Got it. Krithi, thank you so much for answering my questions, and all the best.

Hi. Thanks for the opportunity.

One question from Samir: what is the impact of wage hikes that we see in terms of our margins next quarter? Secondly, any color in terms of this deal flow that we've announced, which is pretty strong, what is the renewal share in terms of that given that they're quite a few deals in the press release where we've extended our relationship with these clients?

On the wage increments, you should expect a similar thing on what we have seen in the past annual increment cycle, which has been in the range of 150 to 200 basis points.

Ashwin, in terms of color or the characteristics of the deals TCV, I would say about mostly a 50-50 or 45-55 kind of in terms of between renewal and new programs. I think this quarter maybe about 50% to 55% could be on renewals, around 40% to 45% around 45% would be on new programs.

This varies typically in a smaller band. Between 40% to 60% band, it varies one way or other.

Thanks, Krithi. Just one follow-up.

In terms of deals, are you seeing early renewals, wherein vendors like yourself as well are going in for early renewals, or the deals are largely getting renewed on time?

By and large on time, but when we also see a opportunity to go back to a customer and provide ensured that earlier renewal can be done with greater AI infusion, greater productivity delivered, and at the same time with the expansion in scope, we do go to the customers and we offer to renew early whenever we see value and whenever it's mutually beneficial, Ashwin.

Thanks, Krithi. Thanks, Samir, and all the best.

Thanks for the opportunity. I think my questions have been answered, but maybe just a quick clarification.

Just if you think about your thought process around wage hikes, right, we've deferred it twice in the last five, six years since COVID. This time, we have reinstated it after when we announced it in September back to the April cycle.

Just wanted to understand what's the thought process behind that given that the overall demand environment, the supply-side environment, and the macro uncertainties largely remain there and haven't seemed to be changing materially over the past six to nine months.

Rishi, it's a reflection as first is we want to ensure that we properly reward all the associates who have been working tirelessly for us. As you know that while in September we were able to give increments to 80% of associates, the senior executive associates we did not give at that time.

We wanted to ensure that when we restart our increment cycle, we reset it and start for everyone. It's also a reflection of the fact that we believe that we have enough deal momentum and demand on our side so that we'll be able to handle the increased wage bill because of increments.

Got it. One very quickly, while you've started giving annualized AI revenues, would it be possible to throw some color on AI deals as well just to get some sense how those are progressing?

Rishi, you look at it, AI deals are, I would say, of two kinds. One is many of the mega deals that Krithi spoke about today, they have a significant amount of AI embedded into them in terms of how we deliver the service, also in terms of how we transform client's business, right?

Apart from this, when we are saying AI revenue, we are only calling out the specific AI for business transformation revenue, which we said has exceeded 2.3 on an annualized billion on an annualized basis. When you look at the nature of programs, it's across industries, across markets, and we see that a lot of these programs are rapid build, 12 to 16-week delivery type of solutions.

These are high-impact problems that the customers are choosing that we can deliver in faster cycles with forward deployment engineers. That is included.

Some of the AI modernization I talked about, which is starting to gain momentum, is all included as part of that.

Understood. Thank you, and all the best.

One last thing is agentic BPS, which I missed talking about. I think that's something which is gaining traction, right, agentic AI in business process services.

We see that earlier in FY 2025 the time taken to implement AI in business process versus this year, we're seeing faster adoption cycles from customers because customers are more confident now putting AI into production, but obviously with all the guardrails, focus on security, governance, and all of that.

Hi. Thank you for taking my questions.

I have two questions for Krithi and one for Samir. My first question for Krithi is your comment that you made on the growth in the revenue bands in mid and large size, and you talked about stability returning.

Is this due to a lower leakage compared to the past, or is it more led by better macro, which is improving the spend in these accounts? The second question is on AI.

If you keep the macro aside for the moment, would you expect the new AI services to be accretive to revenue growth in fiscal 2027 net of all the deflation that you see in your existing business, or is it too early to confirm any such trend? The last question for Samir is that AI for business, when you look at the revenue productivity and the margins in that portion of the business, how does it compare to company average?

Is it better, is it in line, is it lower? Thank you.

Gaurav, first on the client metric improvement, see it's a combination of all the factors because you will not be able to grow if there's no stability or if there's no revenue coming in. It's essentially a reflection of the fact overall at a high level, the clients are more comfortable in getting into larger transformation programs or some amount of discretionary spend improving.

Of course, it's also possible there are some cases vendor consolidation happening where you gain market share. Definitely it indicates there's a stability and more confidence from the clients as well.

For your question about AI, again, our expectation is AI will be net accretive. See, the initial year our attempt would be to ensure that arrest the degrowth while the AI revenue slow increase.

Of course, over a period of time, AI revenue or AI-related revenue, because it will become very difficult to classify after some time on what is AI, what is AI-adjacent revenue, but ensure that we expect them to grow much faster. At that time, the deflation in the other part may not matter materially.

Same cycle whatever happened during the digital transformation cycle, that trend will resume.

Gaurav, on the AI and data part, the revenue productivity is definitely much better than the TCS average or the traditional business both at onsite and offshore. Margin I will not call out because there would be investments which could be temporary or in the initial phase, it wouldn't be like-to-like to compare.

Thank you very much, and all the very best. Thank you, Gaurav.

Thank you.

Thank you, operator. We are very pleased with the continuous revenue growth momentum we have seen in the last three quarters.

In Q4, our revenue grew by 1.2% quarter-on-quarter in constant currency, with an operating margin of 25.3% at a net margin of 19.4%. We had a very strong TCV of $12 billion in Q4 with three mega deals.

Annualized AI services revenue crossed to $2.3 billion. We remain dedicated to our goal of establishing ourselves as the world's premier AI-driven technology services provider.

Our robust five-pillar strategy, combined with sustained investments across infrastructure to intelligence, continues to advance this objective. I extend my appreciation to all TCS employees for their unwavering commitment and professionalism, which has been instrumental to the company's continued success.

This concludes our call today. Thank you for participation.

Thank you.