Tata Consultancy Services Ltd. (TCS) will record a one-time exceptional expense of $70 million (around Rs 665 crore) in the first quarter of FY27 after the US Supreme Court declined to hear the company’s appeal in its trade secrets case involving Computer Sciences Corporation (CSC), now part of DXC Technology.
The company disclosed the development through a Regulation 30 filing submitted to the stock exchanges on June 16, 2026.
The Supreme Court rejected TCS’ petition for a writ of certiorari on June 15, 2026, effectively ending all remaining legal options in the case.
Shares of TCS were trading at Rs 2,196, up 1.57 percent from the previous close of Rs 2,162. The company commands a market capitalisation of Rs 7,94,532 crore.
Case dates back to 2019
The dispute began in 2019, when Computer Sciences Corporation (CSC) filed a lawsuit against TCS.
CSC later became part of DXC Technology following a merger.
According to the allegations, TCS hired around 2,200 employees from Transamerica, a customer using CSC’s proprietary life-insurance software.
CSC claimed that TCS used access obtained through these hires to develop a competing platform and misappropriated trade secrets.
Verdict upheld through multiple courts
A jury awarded $210 million in damages in 2023.
Later, a federal judge reduced the amount to $168 million, comprising:
- $56 million in compensatory damages.
- $112 million in punitive damages.
TCS challenged the ruling on two grounds:
- The information involved did not qualify as legally protected trade secrets.
- DXC should not be entitled to punitive damages without proving actual financial losses.
The US Court of Appeals for the Fifth Circuit rejected both arguments and upheld the award.
TCS subsequently approached the US Supreme Court, which has now refused to hear the case.
Total financial exposure reaches $220 million
Including legal costs and accrued interest, TCS’ total financial exposure from the litigation has increased to $220 million, equivalent to about Rs 2,089 crore.
The company had already provided $150 million (around Rs 1,424 crore) over earlier periods, as disclosed in previous filings dated:
- June 14, 2024
- November 22, 2025
Following the Supreme Court’s decision, the remaining amount will now be recognised.
TCS will record:
- $70 million (around Rs 665 crore) as an exceptional item in Q1 FY27.
- The charge will include additional damages, interest and legal expenses.
- The amount will be disclosed separately from operating expenses.
Impact on earnings
The charge comes after TCS reported its strongest quarterly profit of FY26.
Q4 FY26 highlights
- Revenue: Rs 70,698 crore
- Net profit: Rs 13,784 crore
For the full year, the company reported:
- Revenue of Rs 2,67,021 crore
- Net profit of Rs 49,454 crore
- Free cash flow of Rs 48,013 crore
The additional Rs 665 crore charge represents roughly 4.8 percent of the company’s Q4 FY26 net profit.
About the company
Tata Consultancy Services, a flagship company of the Tata Group, provides IT services, consulting and business solutions across industries including:
- Banking, financial services and insurance (BFSI)
- Manufacturing
- Life sciences
- Communications and media
The company derives 31.9 percent of its revenue from the BFSI segment, according to Q3 FY26 data.
TL;DR:
TCS will book a one-time charge of Rs 665 crore in Q1 FY27 after the US Supreme Court refused to hear its appeal in the DXC Technology trade secrets case. The decision leaves intact a $168 million court award and brings the litigation to a close.
AI Summary:
- US Supreme Court rejected TCS’ appeal on June 15, 2026.
- TCS will record a Rs 665 crore exceptional expense in Q1 FY27.
- The dispute originated from a lawsuit filed by CSC in 2019.
- Total financial exposure has risen to $220 million.
- TCS reported FY26 net profit of Rs 49,454 crore.
