Tata Consultancy Services (TCS) has reported a 0.5% year-on-year decline in dollar revenue for the fiscal year 2026, totaling $30,017 million. This decline is notable as it marks the first instance in TCS's history where dollar revenue growth has decreased. In constant currency terms, the revenue fell by 2.4%. Despite the decline, TCS reported a 5.4% quarter-on-quarter increase in rupee revenue, reaching ₹70,698 crore, with a total revenue growth of 4.6% year-on-year in rupee terms, amounting to ₹267,021 crore. The depreciation of the Indian rupee against the US dollar, which fell by 4% during the March quarter, typically benefits software service companies like TCS, as they bill in foreign currencies. However, demand has softened, leading clients to cut discretionary spending and extend deal cycles, focusing on cost optimization and AI-led projects. TCS's net profit for FY26 rose marginally by 1.35% to ₹49,210 crore. The company's shares have declined 20% year-to-date, significantly underperforming the 9% drop in the NSE Nifty 50 Index, reflecting investor sentiment impacted by developments in AI technology.