₹2.67 lakh crore
Revenue, FY2025-26
25.0%
Operating margin
5,84,519
Employees, 31 March 2026
₹9.35 lakh crore
Average market value, Jan to Jun 2026
Tata Consultancy Services reported revenue of ₹2,67,021 crore for the year ended 31 March 2026. In US dollars that was $30,017 million, 0.5% lower than the year before, and in constant currency it was 2.4% lower. Net income, before exceptional items, was ₹52,820 crore.
This analysis uses the company's own fourth-quarter fact sheet, which breaks revenue down by market and by industry, together with AMFI's market capitalisation data.
TCS SWOT at a glance
Strengths
- Operating margin of 25.0% and net margin of 19.8%
- Cash from operations was 111% of net profit
- 66 clients worth over US$100 million a year
- Majority-owned by Tata Sons
Weaknesses
- Constant-currency revenue fell 2.4%
- Headcount down by 23,460 in a year
- Voluntary attrition of 13.7%
- India is only 5.9% of revenue
Opportunities
- US$40.7 billion of contracts signed in FY2025-26
- 270,000 staff with advanced AI and machine learning skills
- Room to grow outside North America and the UK
- More US$50 million clients: 139, up nine
Threats
- North America and the UK are 66% of revenue
- Banking and financial services are 32%
- Average market value fell 17.2% in six months
- Currency movements can mask or magnify results
Strengths
High and steady margins
TCS reported an operating margin of 25.0% and a net margin of 19.8% for FY2025-26, both before exceptional items. In the final quarter the operating margin was 25.3%.
Profit that turns into cash
Cash flow from operations was ₹54,638 crore, equal to 111% of net profit, and free cash flow was ₹42,983 crore. The company paid ₹39,571 crore in dividends during the year.
Large, long-standing clients
TCS had 66 clients each bringing in more than US$100 million a year, two more than a year earlier, and 139 bringing in more than US$50 million, nine more.
Size and backing
TCS is India's most valuable IT company by a wide margin: at ₹9.35 lakh crore it is worth more than Infosys and HCLTech combined, as our ranking of IT companies shows. Tata Sons owns about 71.7% of it.
Weaknesses
Underlying revenue went backwards
The 4.6% rise in rupee revenue came from the exchange rate. In dollars, revenue fell 0.5%, and in constant currency it fell 2.4%. The fourth quarter was a little better, with constant-currency revenue 0.6% lower than a year earlier and 1.2% higher than the previous quarter.
A smaller workforce
Headcount was 5,84,519 on 31 March 2026, down from 6,07,979 a year earlier. That is 23,460 fewer people, a fall of 3.9%. Voluntary attrition in IT services over the previous twelve months was 13.7%.
Little revenue from its home market
India accounted for 5.9% of revenue. TCS is an Indian company that earns almost all its money abroad, which leaves it exposed to conditions in a few foreign economies.
Opportunities
A large order book
TCS signed contracts with a total value of US$40.7 billion in FY2025-26, including US$12.0 billion in the fourth quarter. North America accounted for US$19.0 billion of the year's total and banking and financial services for US$13.4 billion. Contracts signed are not yet revenue, but they indicate work to come.
AI skills at scale
The fact sheet says more than 270,000 employees have what the company calls higher proficiency in AI and machine learning. It does not report how much revenue comes from AI work, so the commercial value of that training is not yet visible in the numbers.
Markets where it is small
Asia Pacific contributes 8.3% of revenue, India 5.9%, the Middle East and Africa 2.5% and Latin America 1.9%. Growth in any of these would reduce the dependence on two markets.
Threats
Dependence on two markets and one industry
North America brought in 48.6% of revenue and the United Kingdom 17.4%, or 66% together. Banking, financial services and insurance clients accounted for 32.0%. A slowdown in technology spending by American or British banks would be felt across the company.
Investors have turned cautious
TCS had the steepest fall in the top ten of AMFI's list: its average market value went from ₹11.30 lakh crore in the second half of 2025 to ₹9.35 lakh crore in the first half of 2026, down 17.2%. Every one of the ten largest Indian IT companies lost value in that period, so this is a judgment on the sector as much as on TCS.
Currency
Most of TCS's revenue is in dollars, pounds and euros while its accounts are in rupees. In FY2025-26 a weaker rupee turned a fall in revenue into a reported rise. A stronger rupee would do the opposite.
How to read this analysis
A SWOT analysis sorts what is known about a company into four boxes: strengths and weaknesses, which are internal, and opportunities and threats, which come from outside.
Every figure here comes from the company's own results for the year ended 31 March 2026 or from AMFI's market capitalisation list. The sorting into boxes, and the judgment about what matters most, is ours. It is a way of organising public information. It is not investment advice and it is not the company's own view of itself.
TCS: company facts
Frequently asked questions
What are TCS's main strengths?
High margins and strong cash flow. Its operating margin was 25.0% in FY2025-26, and cash from operations was 111% of net profit.
What is TCS's biggest weakness?
Underlying growth. Revenue fell 2.4% in constant currency in FY2025-26, and the workforce shrank by 23,460 people.
Where does TCS earn most of its revenue?
North America (48.6%) and the United Kingdom (17.4%). India accounts for 5.9%. By industry, banking, financial services and insurance is the largest at 32.0%.
How many employees does TCS have?
5,84,519 on 31 March 2026, down from 6,07,979 a year earlier.
Sources
- Q4 2025-26 fact sheet, Tata Consultancy Services. tcs.com. Accessed 11 October 2026. Source of the financial, client and workforce figures.
- Average market capitalisation of listed companies during the six months ended 30 June 2026, Association of Mutual Funds in India (AMFI). portal.amfiindia.com. Accessed 11 October 2026. Source of every market capitalisation figure and rank in this article.
- Average market capitalisation of listed companies during the six months ended 31 December 2025, Association of Mutual Funds in India (AMFI). amfiindia.com. Accessed 11 October 2026. Used for the comparison with the previous six months.
- Tata Consultancy Services, Wikipedia. en.wikipedia.org. Accessed 11 October 2026. Company background. Secondary source.
