Tag: TCS

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SBI rises above TCS to claim fourth spot in India

The State Bank of India (SBI) has overtaken Tata Consultancy Services (TCS) to become the fourth-largest listed company in India. This marks a rare moment when a public sector bank has climbed ahead of a major IT firm in market value.

SBI’s leap comes on the back of a record-breaking quarterly profit of ₹21,028 crore, a rise of nearly 25% compared to the same period last year. Strong growth in loans, higher interest and fee income, and better asset quality have helped the bank shine, even as other sectors faced pressure.

Investors responded enthusiastically. SBI’s shares surged over 3% to a 52-week high, while TCS saw a modest dip amid broader IT sector weakness. The rise in SBI’s market value to around ₹10.9 lakh crore nudged TCS, at ₹10.5 lakh crore, down a notch in the rankings.

While Reliance Industries, HDFC Bank, and Bharti Airtel continue to hold the top three spots, SBI’s climb reflects renewed confidence in the banking sector, particularly in India’s public banks. Analysts say the move signals that investors are paying closer attention to domestic financial growth, even in a market often dominated by technology companies.

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N Chandrasekaran leads TCS’ AI shift

Tata Sons chairman N. Chandrasekaran has stepped into a more active leadership role at Tata Consultancy Services (TCS) to drive its transition towards artificial intelligence.

Addressing employees in Dubai, he stressed that AI is reshaping the global technology landscape and warned that traditional IT service models face disruption. Chandrasekaran urged TCS to rethink its operating model, embed AI across all offerings, and focus strongly on reskilling talent.

He also highlighted the need for agility, innovation, and selective acquisitions to stay competitive. The push aims to position TCS as a leader in AI-driven digital transformation worldwide.

 

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TCS Q3 steady as AI, IT spend rise

Tata Consultancy Services (TCS), India’s largest IT services exporter, is expected to post a steady performance for the third quarter ended December 2025, with analysts forecasting modest growth in both revenue and profit. The slow growth reflects typical seasonal softness at year-end, cautious IT spending by clients, and global economic uncertainties.

According to estimates from brokerage firms, TCS’s dollar revenue is expected to increase only around 0.3% sequentially to $7.49 billion. In Indian rupee terms, revenue may rise about 1.4% to ₹66,715 crore, while net profit is seen growing roughly 1% to ₹13,035 crore. Operating margins could improve slightly due to favorable currency movements, even as fluctuations in the British pound, euro, and rupee against the dollar add some volatility to reported results.

While headline numbers are likely to be modest, investors are paying closer attention to TCS’s commentary on broader trends, particularly corporate IT spending and artificial intelligence (AI) adoption. With many companies prioritizing AI-led transformation projects, management insights on 2026 IT budgets and the strength of TCS’s order pipeline will be key indicators of future growth.

Peer companies such as HCL Technologies are also expected to show modest sequential revenue growth, supported by gains in their products and platforms segments. Analysts note that execution on AI solutions and gaining more share in existing clients’ IT budgets could become critical growth drivers for Indian IT firms, especially in a cautious spending environment.

Overall, TCS’s Q3 performance may appear steady rather than spectacular. However, the real focus for investors will be on the company’s strategic direction, AI initiatives, and the outlook for client spending, which together could set the tone for growth in the coming quarters.

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TCS AI revenue reaches $1.5 billion

Tata Consultancy Services (TCS) has reported $1.5 billion in annual AI revenue, highlighting the growing demand for artificial intelligence services.

The company has successfully completed over 5,500 AI projects across various sectors, strengthening its position as a leading AI-driven technology provider. To support this growth, TCS is hiring specialized “AI-native” talent, investing in data centers, and pursuing strategic acquisitions.

These moves aim to expand its AI capabilities and integrate advanced technologies into client solutions globally. The disclosure marks TCS’s first separate reporting of AI revenue, underlining its commitment to AI-led transformation and digital innovation worldwide.

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TCS to buy US firm Coastal Cloud for $700 million

Tata Consultancy Services (TCS), India’s largest IT services company, will acquire Coastal Cloud, a US-based Salesforce consulting and AI advisory firm, for $700 million in an all-cash deal. The deal is expected to close by January 31, 2026, after receiving the necessary regulatory approvals.

Coastal Cloud, founded in 2012, specializes in Salesforce consulting, multi-cloud integration, and AI-driven digital transformation. The firm employs around 400 Salesforce experts and recorded revenues of $132 million in 2024, growing to $141 million in the year ending September 2025. Coastal Cloud helps businesses across industries implement Salesforce solutions, improve customer experiences, and leverage AI for smarter decision-making.

This acquisition is part of TCS’s plan to expand its Salesforce and cloud services globally. The addition of Coastal Cloud will strengthen TCS’s position among the top five global Salesforce consulting firms and enable the company to serve both mid-market and enterprise clients more effectively.

TCS Chief Operating Officer Aarthi Subramanian said the deal supports the company’s “AI-led transformation strategy” and enhances its Salesforce expertise. Coastal Cloud CEO Eric Berridge said joining TCS will allow the combined team to deliver better solutions at a larger scale.

The deal follows TCS’s recent acquisition of ListEngage, a US-based AI advisory firm, in October 2025. Together, these moves highlight TCS’s focus on cloud, AI, and digital transformation services, reinforcing its position in the global consulting market.

The acquisition also brings TCS new industry experience and expands its client base in the US, a key market for Salesforce consulting. Analysts expect the move to accelerate TCS’s growth in digital solutions and strengthen its competitive position in the fast-evolving IT services sector.

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TCS faces $194 million penalty in US trade-secrets case

Tata Consultancy Services (TCS) has run into a major legal challenge in the United States. A federal appeals court has upheld a $194.2 million penalty in a trade-secrets dispute with Computer Sciences Corporation (CSC), which is now part of DXC Technology.

The court confirmed the damages awarded by a lower court in Dallas, including $56 million in direct compensation, $112 million in punitive damages, and $25.8 million in pre-judgment interest. On the brighter side for TCS, the appeals court overturned a ban on using certain CSC-owned software and sent that part of the case back to the lower court for review.

The dispute dates back to 2019, when CSC alleged that TCS misused confidential software while onboarding employees from Transamerica, who had previously worked on CSC systems. According to CSC, TCS used this insider knowledge to develop a competing insurance software platform.

TCS has expressed disagreement with the ruling and is considering its next legal moves, including possible further appeals. The company also said it will reflect the financial impact of the judgment in its accounts.

While the $194 million penalty still stands, the temporary lifting of the software-use ban gives TCS some breathing room as the lower court re-examines the injunction.

This case brings to light, the growing scrutiny faced by global IT firms handling sensitive client information and highlights the high stakes of intellectual property disputes in the technology sector.

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TCS, TPG join hands for $1 billion AI data centre investment

Tata Consultancy Services (TCS) has partnered with global private equity firm TPG, raising $1 billion to expand its AI-focused data centre business, HyperVault. The total investment in the venture could reach ₹18,000 crore over the coming years.

Under the deal, TPG may hold 27.5–49% of HyperVault. The funds will help TCS develop gigawatt-scale AI-ready data centres, equipped for high-performance computing, low-latency networking, and rapid data storage for AI applications.

India’s current data centre capacity is around 1.5 GW, but the demand for AI infrastructure is expected to push this figure to 10 GW by 2030, according to TCS.

HyperVault centres will feature energy-efficient designs, liquid cooling, and high-density racks, making them ideal for AI workloads. TCS Chairman N. Chandrasekaran said the partnership will strengthen the company’s ability to serve “hyperscalers and AI companies.”

TPG Executive Chairman Jim Coulter highlighted the venture as a “climate-positive” opportunity, sitting at the intersection of technology, real estate, and green energy.

This collaboration marks a major step for TCS in its ambition to become a leader in AI infrastructure and services, leveraging next-generation data centres to support emerging technologies.

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