TCS to Record $70 Million Exceptional Expense After U.S. Legal Setback
New Delhi — Tata Consultancy Services said Tuesday it will make an additional provision of $70 million toward damages, interest and legal costs after the U.S. Supreme Court declined to review a lower court judgment in its long-running legal dispute with Computer Sciences Corporation, now known as DXC Technology.
In a regulatory filing, the IT services major said the U.S. Supreme Court denied its petition for a writ of certiorari seeking a review of a judgment passed by the U.S. Court of Appeals for the Fifth Circuit on June 15.
The decision marks another setback for TCS in the litigation involving DXC Technology.
TCS said it had already provided $150 million in its books of accounts related to the matter in accordance with applicable accounting standards.
Following the Supreme Court’s decision, the company will make an additional provision of $70 million toward damages, interest and legal costs. The amount will be recorded as a one-time exceptional expense in the first quarter of FY2026-27.
The company had previously updated investors on the case through regulatory filings in June 2024 and November 2025.
TCS had earlier suffered a legal setback after the Fifth Circuit upheld a damages award of $194.2 million and ruled in favor of CSC in a long-running trade secrets dispute.
The company did not provide further details on the financial impact beyond the additional provision to be recognized in the June quarter.
Meanwhile, shares of TCS were trading more than 2 percent higher at Rs 2,208.50 apiece on the BSE on Tuesday.
The stock has touched a 52-week high of Rs 3,539.45 and a 52-week low of Rs 2,110.00 on the exchange. (Source: IANS)
