TCS Allocates Additional $70 Million Following Supreme Court Decision

Tata Consultancy Services (TCS) announced on 16 June 2026 that it will allocate an additional $70 million as a provision in relation to an ongoing legal matter with Computer Sciences Corporation (CSC), which is now part of DXC Technology. This decision follows the rejection by the United States Supreme Court to review a prior ruling from a lower court.

In a filing to the Bombay Stock Exchange, TCS indicated that it had previously made a provision of $150 million concerning this case, complying with applicable accounting standards. The company stated that it is now preparing to account for the extra $70 million to cover damages, interest, and legal expenses. This provision will be recorded as a one-time exceptional cost in the first quarter of fiscal year 2027.

The legal dispute dates back several years and involves trade secrets. TCS had disclosed relevant updates on the matter in earlier filings made in June 2024 and November 2025. Earlier decisions by the U.S. Court of Appeals for the Fifth Circuit had upheld a $194.2 million damages award in favour of CSC.

In the recent communication, TCS reiterated that the U.S. Supreme Court had denied its petition for a writ of certiorari to examine the judgment made by the Fifth Circuit. The company stated, “In continuation of our earlier communication... we wish to inform you that the United States Supreme Court has denied our petition for a writ of certiorari to review the judgment...”

This latest development underscores the ongoing complexities faced by TCS as it navigates legal challenges in the U.S. market. Investors will be closely monitoring further implications of this provision and how it affects the company's overall financial health moving forward.