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Why TCS is walking a tightrope

Mint New Delhi

|

November 28, 2025

Tata Consultancy Services Ltd recently outlined an ambitious multiyear $6-7 billion investment plan to build artificial intelligence (AI)-focused data centres and is already making progress in that area.

- Ananya Roy

Last week, it bagged a $1 billion investment from private equity firm TPG Terabyte Bidco Pte Ltd for scaling its data centre platform HyperVault. But, legal troubles are also brewing.

A longstanding legal dispute with US-based CSC (now part of DXC Technology) over an insurance platform's trade secrets, landed against TCS this week. A US appeals court upheld the 2024 judgement by a US district court, levelling $194.2 million in damages on TCS.

Calling it an adverse ruling, TCS, in an exchange filing, said it is evaluating various options, including review and appeal before appropriate courts, and intends to vigorously defend its position. The levelled damages stand at less than ₹2,000 crore, against the firm's ₹12,075 crore consolidated profit in the September quarter (Q2FY26).

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