Tata Consultancy Services (TCS) said the ongoing geopolitical tensions in the Middle East have had a limited and localised impact on its operations so far, with no broader spillover across other geographies or industry verticals, even as it continues to monitor the evolving situation closely.
During its earnings conference call for the March quarter, TCS management said any direct impact from the geopolitical situation has largely been restricted to the Middle East region and, to some extent, the travel and transportation sector.
K Krithivasan, Chief Executive and Managing Director, said the impact has been restricted to the Middle East and to some extent into our travel and transportation industry, and we have not seen a major impact in other industries so far.
However, a prolonged conflict leading to supply-chain disruptions could create secondary effects over time. “If thingscontinue and if it results in further supply chain disruption or any other secondary issues, it may have an impact,” he highlighted.
From a people perspective, TCS said all its employees and their families stationed in the Middle East are safe. Sudeep Kunnumal, Chief Human Resources Officer, told analysts that the company remains in constant touch with its staff in the region and is providing necessary support amid the uncertain environment.
“All our employees and their families in the Middle East are safe, and we are in constant touch with them, providing the necessary support,” he said.
Despite the geopolitical backdrop, TCS reported a steady March-quarter performance, delivering its third consecutive quarter of sequential growth. The company posted constant-currency growth of 1.2% quarter-on-quarter, supported by strong deal wins and sustained demand for AI-led services.
Management underlined that while global uncertainty remains elevated, including conflicts in West Asia, client decision-making has not seen a broad-based slowdown. Spending caution, where visible, has been very geo-specific, not a broad-based caution, it said.
TCS added their performance in FY26 reflects not just strong execution, but enduring trust—from clients who are committing to longer-term partnerships, and from associates who continue to drive transformation at scale.
“With a robust order book, expanding client relationships across revenue bands, accelerating AI momentum, and foundational investments like HyperVault, we are building the next phase of TCS with conviction,” they said.
