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TCS · Tata Consultancy Services Limited · NSE · Filed 9 Jul · 1 min read

TCS declares ₹12 interim dividend, books further ₹668 crore charge on CSC case

With its June-quarter results, the board fixed an interim dividend and provided a fresh exceptional charge after the US Supreme Court declined to review the CSC dispute.

What was filed

At its meeting on July 9, 2026, the board of Tata Consultancy Services declared an interim dividend on each equity share of ₹1, payable on July 31, 2026 to shareholders on record as on July 15, 2026 (the record date). The declaration was filed alongside the company's audited standalone and consolidated interim financial results for the quarter ended June 30, 2026, on which the statutory auditors, B S R & Co. LLP, expressed an unmodified opinion.

Per the filing's dividend disclosures, the interim dividend sits below the final dividend paid for FY2025-26 but above the interim dividend declared a year earlier.

The quarter's numbers

On a consolidated basis, TCS reported higher revenue and profit for the June 2026 quarter than the same quarter a year earlier. Across segments, Banking, Financial Services and Insurance remained the largest contributor to segment revenue.

Profit for the period carried an exceptional item — a fresh provision tied to the CSC legal claim — disclosed under exceptional items in both the standalone and consolidated statements.

The CSC provision

The charge stems from a dispute dating to April 2019, when Computer Sciences Corporation sued TCS in a US court alleging misappropriation of trade secrets. After an advisory jury verdict, a 2024 trial-court judgement, and a 2025 affirmation by the Fifth Circuit, the US Supreme Court denied TCS's petition for review on June 15, 2026.

Following that denial, the company said it provided a further amount towards exemplary damages and costs, disclosed as "Settlement of legal claim" under exceptional items, plus an additional sum towards interest under other interest costs. This is over and above the provision the company had already made in FY2025-26.

Interim dividend per share (year-ago quarter)
₹11.00 → ₹12.00Q1 FY26 → Q1 FY27+9%
Consolidated revenue from operations (year-ago quarter)
₹63,437 → ₹72,275 crQ1 FY26 → Q1 FY27+14%
Consolidated profit for the period (year-ago quarter)
₹12,819 → ₹13,420 crQ1 FY26 → Q1 FY27+5%
Net margin
20.2% → 18.6%Q1 FY26 → Q1 FY27−1.6 pp
Consolidated profit before tax
₹17,944 crore
Basic and diluted EPS (consolidated)
₹36.90
Fresh CSC settlement provision (exceptional item)
US $70 million (₹668 crore)
Additional CSC interest provision
US $7 million (₹69 crore)

‡ Computed by us from the filing’s own figures — not a company-stated number.

The filing fixes two things for holders: a cash return, via the interim dividend with a July 15 record date and July 31 payment, and the closing of a multi-year US litigation, with TCS having provided for the awarded damages and costs following the Supreme Court's refusal to review the case.

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