The Directors present this Integrated Annual Report of Tata Consultancy Services Limited ("the Company" or "TCS") along with the
audited financial statements for the financial year ("FY") ended March 31, 2026.

The consolidated performance of the Company and its subsidiaries has been referred to wherever required.

1. Financial results

Note: The above figures are extracted from the audited standalone and consolidated financial statements of the Company prepared
in accordance with the Indian Accounting Standards ("Ind AS").

2. Return of surplus funds to Shareholders

In line with the practice of returning substantial free cash flow to shareholders and based on the Company's performance, the
Company declared/recommended dividends as under:

The total Dividend on equity shares for FY 2026 is 11,000%
of the paid-up value of each share.

The Dividend Distribution Policy, in terms of Regulation 43A
of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015
("SEBI Listing Regulations"), is available on the Company's
website athttps://on.tcs.com/Dividend.

3. Transfer to reserves

The closing balance of the retained earnings of the Company
for FY 2026 after all appropriation and adjustments was
H84,329 crore.

4. Company's performance and state of affairs

On a consolidated basis, the revenue from operations for
FY 2026 was ?2,67,021 crore, higher by 4.6% over the
previous year's revenue from operations of ?2,55,324 crore.
The profit for the year attributable to shareholders
(excluding exceptional items) for FY 2026 was ?52,820 crore,
registering a growth of 8.8% over the profit for the year
attributable to shareholders of ?48,553 crore in FY 2025.

On a standalone basis, the revenue from operations for
FY 2026 was ?2,20,938 crore, higher by 2.8% over the
previous year's revenue from operations of ?2,14,853 crore.
The profit for the year attributable to shareholders (excluding
exceptional items) in FY 2026 was ?52,391 crore, registering
a growth of 9.0% over the profit for the year attributable to
shareholders of ?48,057 crore in FY 2025.

The Company did not undergo any change in the nature of its
business during FY 2026.

There have been no material changes and commitments,
affecting the financial position of the Company, that have
occurred between the end of the financial year to which the
financial statements relate and the date of this Report.

5. Subsidiary companies

As on March 31, 2026, the Company had 65 subsidiaries
with 24 direct subsidiaries and 41 step-down subsidiaries.
During the year under review, the Company has acquired,
incorporated or merged the following subsidiaries:

Acquired:

• ListEngage Midco, LLC (USA)

• ListEngage, LLC (USA)

• Coastal Cloud Holdings, LLC (USA)

• Coastal Cloud NA LLC (USA) [formerly known as SCP V-B
Blocker III LLC]

• Coastal Cloud, LLC (USA)

• CC StructureCo, LLC (USA)

• Coastal Cloud Intermediate, LLC (USA)

• Coastal Cloud Canada Corp. (Canada)

Incorporated:

• HyperVault AI Data Center Limited (India)

• 3-101-951221 S.A. (Costa Rica)

• Tata Consultancy Services BT Private Limited (Bhutan)

• Tata Consultancy Services Regional Headquarters
(Saudi Arabia)

• Tata Consultancy Services Maroc SARL AU (Morocco)

• TCS North America Corporation (USA)

• Trident LE LLC (USA)

Merged:

• Trident LE LLC merged into Coastal Cloud
Holdings, LLC (USA)

• TCS Solution Center S.A. merged with TCS
Uruguay S.A. (Uruguay)

Further, the Company does not have any material subsidiary.
There has been no material change in the nature of business
of the subsidiaries. There are no associates or joint venture
companies within the meaning of Section 2(6) of the
Companies Act, 2013 ("the Act").

Key developments during the year under review:
ListEngage Midco, LLC & ListEngage, LLC

On October 10, 2025, an Equity Purchase Agreement was
executed between the Company, ListEngage Midco, LLC and
ListEngage Holdings, LLC for acquisition of 100% ownership
interest in ListEngage Midco, LLC, incorporated in the State of
Delaware, USA, along with its subsidiary ListEngage, LLC, for
a consideration of US$69 million (?612 crore). This acquisition
positions the Company to capitalize on ListEngage's strong
Salesforce ecosystem presence, including advisory board
participation across Marketing Cloud, Data Cloud and
Agentforce, as well as its close alignment with Salesforce's
sales teams. ListEngage leverages the Company's expansive
customer base to accelerate growth.

Coastal Cloud

On December 10, 2025, the Company executed Securities
Purchase Agreement and Plan of Merger ("Agreement")
for acquisition of 100% ownership interest in Coastal
Cloud Holdings, LLC ("Coastal Cloud") in the USA with its
subsidiaries, through ListEngage Midco, LLC ("ListEngage
Midco"), a wholly owned subsidiary of the Company.

Subsequently, on December 15, 2025, ListEngage Midco
incorporated two wholly owned subsidiaries in the USA
viz. TCS North America Corporation and Trident LE LLC, to
consummate the aforesaid acquisition.

On January 14, 2026, ListEngage Midco acquired 86%
ownership interest in Coastal Cloud through merger of
Trident LE LLC with Coastal Cloud and remaining 14%
through acquisition of SCP V-B Blocker III LLC ("SCP Blocker")
via TCS North America Corporation, for a consideration of
US$707 million (?6,386 crore). The name of SCP Blocker was
changed to Coastal Cloud NA LLC in February 2026.

The acquisition of ListEngage and Coastal Cloud would
significantly strengthen the Company's global salesforce
aspirations by bringing together comprehensive, multi-cloud
Salesforce expertise across industries globally with enhanced
talent and complementary delivery capabilities. The Company
is now better equipped to deliver stronger client outcomes
and accelerate growth across all key global markets.

HyperVault AI Data Center Limited

HyperVault AI Data Center Limited ("HyperVault") was
incorporated as a wholly owned subsidiary on October 29,
2025 in India. Subsequently, on November 20, 2025, the
Company entered into a Securities Subscription Agreement
and a Shareholders' Agreement ("Transaction Documents")
with TPG Terabyte Bidco Pte. Ltd. ("TPG") and HyperVault
for an investment by the Company and TPG in HyperVault
up to ?18,000 crore over the next few years, in the ratio of
51:49 respectively.

Upon satisfaction of all conditions precedent under the
Transaction Documents (as amended), TPG subscribed to
49% of the total paid-up share capital amounting to
?199.4 crore on a diluted basis, of HyperVault on
March 9, 2026. Consequently, HyperVault ceased to be
a wholly owned subsidiary of the Company.

Through this partnership, the Company seeks to support
HyperVault's Gigawatt-scale AI-ready infrastructure build
with a plan to create AI-ready data centres, having capacity
in excess of a Gigawatt over the next few years. HyperVault
aims to facilitate AI-led innovation while aligning its operations
with the principles of sustainability, governance and
long-term value creation. This aligns with the Company's
aspiration of becoming world's largest AI-led technology
services company.

Other updates

• TCS Solution Center S.A., a step-down wholly owned
subsidiary of the Company was merged with

TCS Uruguay S.A., w.e.f. October 1, 2025, to simplify
the structure and operations.

• TCS Iberoamerica S.A., a wholly owned subsidiary of
the Company, incorporated 3-101-951221 S.A. in
Costa Rica on December 15, 2025, to establish an
operational presence in Costa Rica and expand the
Company's footprint in a jurisdiction recognised for
hosting captive centres of multinational corporations
and for its strong talent pool, particularly in relation to
servicing North American clients.

• Tata Consultancy Services Asia Pacific Pte. Ltd., a
wholly owned subsidiary of the Company, incorporated
Tata Consultancy Services BT Private Limited as a
wholly owned subsidiary in Bhutan on December 16,
2025, to expand the Company's business presence

in South-east Asia and to support the demand for
digital transformation in Bhutan and to undertake
activities relating to the provision of information
technology solutions, including initiatives for
employment generation and training to support local
talent development.

• Tata Consultancy Services Netherlands B.V., a wholly
owned subsidiary of the Company, incorporated:

O Tata Consultancy Services Regional Headquarters
in the Kingdom of Saudi Arabia ("KSA") as a
wholly owned subsidiary on January 18, 2026,
in pursuance to KSA's Regional Headquarters
("RHQ") Programme which requires multinational
companies to maintain a licensed RHQ in
Riyadh, Saudi Arabia.

O Tata Consultancy Services Maroc SARL AU in
Morocco as a wholly owned subsidiary on
January 23, 2026, to establish a nearshore
delivery capability to serve French speaking
regions across Europe and global customers
covering service offerings including application
development and maintenance, data and AI
transformation, infrastructure and engineering
services, enterprise applications and cloud based
digital transformation.

Pursuant to the provisions of Section 129(3) of the Act, a
statement containing the salient features of financial
statements of the Company's subsidiaries in Form No. AOC-1
is attached to the financial statements of the Company.

Further, pursuant to the provisions of Section 136 of the Act
read with Regulation 46 of the SEBI Listing Regulations, the
financial statements of the Company, consolidated financial
statements along with relevant documents and separate
audited financial statements in respect of subsidiaries, are
available on the Company's website and can be accessed by
clicking here.

6. Directors' Responsibility Statement

Based on the framework of internal financial controls and
compliance systems established and maintained by the
Company, the work performed by the internal, statutory and
secretarial auditors and external consultants, including the
audit of internal financial controls over financial reporting by
the statutory auditors and the reviews performed by
the management and the relevant Board Committees,
including the Audit Committee, the Board is of the opinion
that the Company's internal financial controls were
adequate and effective during FY 2026. Pursuant to Section
134(5) of the Act, the Board of Directors, to the best of its
knowledge and ability, confirm that:

i. In the preparation of the annual accounts, the
applicable accounting standards have been followed
and there are no material departures;

ii. They have selected such accounting policies and
applied them consistently and made judgements and
estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the
Company at the end of the financial year and of the
profit of the Company for that period;

iii. They have taken proper and sufficient care for
the maintenance of adequate accounting records
in accordance with the provisions of the Act for
safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;

iv. They have prepared the annual accounts on a
going concern basis;

v. They have laid down internal financial controls to be
followed by the Company and such internal financial
controls are adequate and operating effectively;

vi. They have devised proper systems to ensure
compliance with the provisions of all applicable
laws and that such systems are adequate and
operating effectively.

7. Directors and Key Managerial Personnel

The Board of Directors comprises distinguished professionals
of proven integrity and competence, who provide strategic
direction, guidance and leadership to the Company.

As on March 31, 2026, the Board of Directors of the Company
comprised of eight Directors with an optimum balance
of Executive and Non-Executive Directors, including two
Women Directors. Of these, six Directors were Non-Executive
Directors, five of whom were Independent Directors.

During the year under review, the Members approved the
appointment of Sanjay V Bhandarkar (DIN 01260274) as
Non-Executive, Independent Director of the Company for
a term of five years commencing from March 4, 2025 to
March 3, 2030, through Postal Ballot for which the results
were declared on April 24, 2025.

Further, the Members approved the appointment of
Aarthi Subramanian (DIN 07121802) as Whole-time Director
designated as Executive Director - President and Chief
Operating Officer ("ED-President & COO") of the Company
for a term of five years commencing from May 1, 2025 to
April 30, 2030, at the previous Annual General Meeting
("AGM") held on June 19, 2025.

N Chandrasekaran (DIN 00121863) retires by rotation and
being eligible, offers himself for re-appointment. A resolution
seeking Members' approval for his re-appointment along with
other required details forms part of the Notice of this AGM.

Pursuant to the provisions of Section 149(7) of the Act, the
Independent Directors have submitted declarations that each
of them meets the criteria of independence as provided in
Section 149(6) of the Act along with Rules framed thereunder
and Regulation 16(1)(b) of the SEBI Listing Regulations.

The Board has taken on record the said declarations
submitted by the Independent Directors after undertaking
due assessment of the veracity of the same. There has been
no change in the circumstances affecting their status as
Independent Directors of the Company.

During the year under review, the Non-Executive Directors of
the Company had no pecuniary relationship or transactions
with the Company, other than sitting fees, commission and
reimbursement of expenses, if any.

Pursuant to the provisions of Section 203 of the Act,

K Krithivasan, Chief Executive Officer and Managing Director
("CEO & MD"), Aarthi Subramanian, ED-President & COO,

Samir Seksaria, Chief Financial Officer and Yashaswin Sheth,
Company Secretary and Compliance Officer are the Key
Managerial Personnels ("KMPs") of the Company as on
March 31, 2026.

8. Meetings of the Board and its Committees

Eight meetings of the Board were held during the year
under review. The necessary quorum was present for all the
meetings. The maximum interval between any two Board
meetings did not exceed 120 days. For details of meetings
and composition of the Board and Committees of the Board,
please refer to the Corporate Governance Report, which
forms part of this Report.

9. Familiarization Program for Independent
Directors

Pursuant to the provisions of Regulation 25(7) of the SEBI
Listing Regulations read with Schedule IV of the Act, the

Company has in place a Familiarization Program for its
Independent Directors to acquaint them with the Company,
their roles and responsibilities, the business model,
operational aspects and governance framework of the
Company. Through this program, the Independent Directors
are provided with relevant information and insights to
enable them to gain a comprehensive understanding of the
Company's business and to contribute effectively to the
Board and its Committees.

The familiarization sessions are conducted through
presentations, briefings and interactions with senior
management, as and when required. Details of the
Familiarization Program for Independent Directors are also
disclosed on the Company's website and can be accessed by
clickinghere.

10. Board evaluation¹

The Board of Directors has carried out an annual evaluation
of its own performance, board committees and individual
directors pursuant to the provisions of the Act and SEBI
Listing Regulations. The criteria is broadly based on the
Guidance Note on Board Evaluation issued by the SEBI.

The performance of the Board was evaluated by the Board
after seeking inputs from all the Directors on the basis
of criteria such as the board composition and structure,
effectiveness of board processes, information and
functioning, etc.

The performance of the Committees was evaluated by the
Board after seeking inputs from the Committee Members on
the basis of criteria such as the composition of committees,
effectiveness of committee meetings, etc.

In a separate meeting of Independent Directors, performance
of Non-Independent Directors, the Board as a whole and
Chairman of the Company was evaluated, taking into account
the views of Executive and Non-Executive Directors.

The Board and the Nomination and Remuneration
Committee ("NRC") reviewed the performance of individual
directors on the basis of criteria such as contribution of the
individual director to the Board and Committee meetings
like preparedness on the issues to be discussed, meaningful
and constructive contribution and inputs in meetings, etc.

At the Board meeting that followed the meeting of
the Independent Directors and meeting of NRC, the
performance of the Board, its Committees and individual
directors was also discussed. Performance evaluation of
Independent Directors was done by the entire Board.

The overall outcome of the Board evaluation process was
positive and the Directors expressed satisfaction with the
performance and effectiveness of the Board, its Committees
and Individual Directors. For further details, please refer
to the Corporate Governance Report, which forms part
of this Report.

11. Policy on Directors' appointment and
remuneration

The Company has adopted the following policies:

i. Policy on Appointment of Directors and Board Diversity
including the criteria for determining qualifications,
positive attributes, independence of a director and
other matters which is available on the Company's
website athttps://on.tcs.com/ApptDirectors.

ii. The policy on remuneration and other matters
provided in Section 178(3) of the Act has been
disclosed in the Corporate Governance Report,
which forms part of this Report and is also available
on the Company's website athttps://on.tcs.com/
remuneration-policy.

12. Corporate Social Responsibility ("CSR")

The Company's CSR initiatives and activities are aligned to
the requirements of Section 135 of the Act.

The Annual Report on CSR activities for the year under
review is set out in Annexure I of this Report in the format
prescribed in the Companies (Corporate Social Responsibility
Policy) Rules, 2014. The CSR Policy is available on the
Company's website athttps://on.tcs.com/Global-CSR-Policy.

For other details regarding the CSR Committee, please refer
to the Corporate Governance Report, which forms part
of this Report.

13. Audit Committee

The Audit Committee performs the roles and functions
as mandated under the Act, the SEBI Listing Regulations
and such other matters as prescribed by the Board
from time to time.

All the Members of the Audit Committee are Independent
Directors and possess strong accounting and financial
management expertise.

The composition of the Audit Committee is given below:

The extract of terms of reference of the Audit Committee,
attendance at its meetings and other details are provided
in the Corporate Governance Report, which forms part
of this Report.

During the year under review, all the recommendations
made by the Audit Committee were accepted by the Board.

14. Auditors

Statutory Auditors

At the twenty-seventh AGM held on June 9, 2022, the
Members approved the re-appointment of B S R & Co.

LLP, Chartered Accountants (ICAI Firm Registration No.
101248W/W- 100022) as Statutory Auditors of the Company
to hold office for a period of five years from the conclusion
of that AGM till the conclusion of the thirty-second AGM to
be held in the year 2027.

Based on the recommendation of the Audit Committee, the
Board of Directors at its meeting held on February 28, 2026 has
recommended the appointment of Walker Chandiok & Co LLP,
Chartered Accountants (ICAI Firm Registration No. 001076N/
N500013), as the Statutory Auditors of the Company, for a
term of five consecutive years, from the conclusion of the
thirty-second AGM of the Company to be held in the year
2027 till the conclusion of the thirty-seventh AGM to be held
in the year 2032. The proposed appointment will be placed
before the Members for their approval at the thirty-second
AGM to be held in the year 2027.

Secretarial Auditors

During the year under review, the Members approved the
appointment of Parikh & Associates, Practising Company
Secretaries (Firm Registration No. P1988MH009800) as the
Secretarial Auditors of the Company, to hold office for a
term of five consecutive years up to FY 2030.

Cost Records and Cost Auditors

Maintenance of cost records and requirement of cost audit
as prescribed under the provisions of Section 148(1) of the
Act are not applicable for the business activities carried out
by the Company.

15. Statutory Auditor's report and Secretarial Audit
report

The Statutory Auditor's report and the Secretarial Audit
report do not contain any qualifications, reservations,
adverse remarks or disclaimer. Secretarial Audit report, i.e.,
Form No. MR-3 is attached to this Report as Annexure II.

During the year under review, the Statutory Auditors and
Secretarial Auditors of the Company have not reported any
fraud to the Audit Committee committed by its officers or
employees as specified under Section 143(12) of the Act.

16. Internal financial control systems and its
adequacy

The Company's internal control systems are commensurate
with the nature of its business, the size and complexity
of its operations and such internal financial controls with
reference to the financial statements are adequate.

The details in respect of internal financial controls and its
adequacy are included in the Management Discussion and
Analysis, which forms part of this Report.

17. Risk management

The Board of Directors of the Company has a Risk
Management Committee to frame, implement and monitor
the risk management plan for the Company.

The Committee is responsible for monitoring and reviewing
the risk management plan and ensuring its effectiveness.
The Audit Committee has additional oversight in the area
of financial risks and controls. The major risks identified by
the businesses and functions are systematically addressed
through mitigating actions on a continuing basis.

The development and implementation of risk management
policy has been covered in the Management Discussion and
Analysis, which forms part of this Report.

18. Particulars of loans, guarantees and
investments

Loans, guarantees and investments covered under
Section 186 of the Act have been disclosed in
the financial statements, which forms part of this
Integrated Annual Report.

19. Valuation for one time settlement

There was no instance of one time settlement with any bank
or financial institution.

20. Transactions with related parties

None of the transactions with related parties fall under
the scope of Section 188(1) of the Act. Accordingly, the
disclosure of related party transactions as required under
Section 134(3)(h) of the Act in Form AOC-2 is not applicable
to the Company for FY 2026 and hence, does not form part
of this Report.

The Policy on Related Party Transactions is available
on the website of the Company at
https://on.tcs.com/tcs-related-party-transactions.

21. Deposits from public

The Company has not accepted any deposits from public
and as such, no amount on account of principal or interest
on deposits from public was outstanding as on the date
of the balance sheet. Accordingly, disclosing the details of
deposits which are not in compliance with the requirements
of Chapter V of the Act is not applicable.

22. Annual Return

Pursuant to Section 92(3) read with Section 134(3)(a)
of the Act, the Annual Return as on March 31, 2026
is available on the Company's website at
https://on.tcs.com/annual-return-25-26.

23. Disclosure requirements

As per SEBI Listing Regulations, the Management Discussion
and Analysis, the Corporate Governance Report with the
Auditors' Certificate thereon and the Business Responsibility
and Sustainability Report ("BRSR") forms part of this
Board's Report.

The BRSR indicates the Company's performance against
the principles of the 'National Guidelines on Responsible
Business Conduct'. This would enable the Members to
have an insight into Environmental, Social and Governance
initiatives of the Company.

24. Integrated Report

The Company has voluntarily provided Integrated Report,
which encompasses both financial and non-financial
information to enable the Members to take well-informed
decisions and have a better understanding of the Company's
long-term perspective. The Report also touches upon aspects
such as organisation's strategy, governance framework,

performance and prospects of value creation based on the
five forms of capital viz. financial capital, human capital,
intellectual capital, social capital and natural capital.

25. Vigil Mechanism

The Company has a Whistle Blower Policy and has
established the necessary vigil mechanism for Employees,
Directors and Stakeholders in conformation with the
provisions of Section 177(9) of the Act and Regulation 22 of
SEBI Listing Regulations, to report genuine concerns about
unethical behaviour and to ensure strict compliance with
ethical and legal standards across the Company.

This Policy is available on the Company's website and can be
accessed by clicking here.

26. Disclosures under the Sexual Harassment of
Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013 ["POSH Act"]

The Company follows a zero-tolerance approach towards
sexual harassment and remains firmly committed to
ensuring the safety, dignity and well-being of all employees.
It strives to foster a safe, inclusive and respectful workplace
across all its global operations.

The Company has implemented a Global Policy on the
Prevention of Sexual Harassment, aligned with the POSH
Act and other applicable laws across the jurisdiction in
which it operates. Internal Committees ("ICs") have been
constituted in accordance with the requirements of the POSH
Act. Multiple reporting channels are available for reporting
concerns, including the Company intranet for TCS employees
and a dedicated email address (ic.posh@tcs.com) for others.

All complaints are addressed with due sensitivity, fairness
and confidentiality, with appropriate safeguards to protect
the privacy and reputation of all individuals involved.

Based on the findings of the inquiry, suitable corrective
& disciplinary actions including warning, apology,
reassignment, separation or other remedial measures are
taken as warranted.

The Company continues to strengthen awareness and
prevention through regular training of IC members,
structured awareness programmes, induction sessions
for new employees and ongoing e-learning modules for

employees, trainees and associates. Approximately 97%
of employees were covered through these initiatives in
FY 2026. Regular communications, including emails and
workplace collaterals are also used to reinforce the expected
standards of professional conduct.

The details of complaints received, disposed and pending,
during FY 2026 are as follows:

^includes complaints specific to the Company and its Indian subsidiaries, by
the employees in India, as per the POSH Act

27. Compliance with Maternity Benefit Act, 1961

The Company is compliant with the applicable provisions of
the Maternity Benefit Act, 1961 and has policies, systems
and processes in place to ensure ongoing compliance.

28. Secretarial Standards

The Company has devised proper systems to ensure
compliance with the provisions of all applicable Secretarial
Standards issued by the Institute of Company Secretaries
of India and that such systems are adequate and
operating effectively.

29. Significant and material orders

There were no significant and material orders passed by
the regulators or courts or tribunals impacting the going
concern status and the Company's operations in future.

30. Proceedings under the Insolvency and
Bankruptcy Code, 2016

No proceedings are initiated/pending against the Company
under the Insolvency and Bankruptcy Code, 2016.

31. Particulars of employees

The information under Section 197 of the Act read with Rule 5 of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 is provided below:

a. The ratio of the remuneration of each director to the median remuneration of the employees of the Company and percentage
increase in remuneration of each Director and KMPs in the financial year:

Note: The ratio of remuneration to median remuneration relates to the employees of the Company excluding its subsidiaries.
@ As a policy, N Chandrasekaran, Chairman, has abstained from receiving commission from the Company and hence
not stated.

^A Remuneration received in FY 2026 is not comparable with remuneration received in FY 2025 which was for part of the
year and hence not stated.

$ Remuneration received in FY 2026 is for part of the year and hence not stated.

b. The percentage increase in the median remuneration
of employees in the financial year is 5.1%.

c. The number of permanent employees on the rolls of
Company are 5,84,519.

d. The average annual increase for junior and mid-level
employees was in the range of 4.5 - 7.0%, with top
performers receiving double digit increment in India.
However, during the course of the year, the total
increase is in the range of 5.0 - 8.0%, after accounting
for promotions and other event based compensation
revisions. Junior and mid-level employees outside India
received a wage increase varying from 1.5 - 6.0%.

The increase in remuneration is in line with the
market trends in the respective countries. In order
to ensure that remuneration reflects the Company's
performance, the variable pay is also linked to
organisation performance and individual utilisation in
addition to individual performance.

Increase in managerial remuneration for CEO & MD for
the year was 6.3%. Remuneration for ED-President &
COO is for part of the year and hence not considered.

e. The Company affirms that the remuneration is as per
the remuneration policy of the Company.

f. The statement containing names of top ten employees
in terms of remuneration drawn and the particulars of
employees as required under Section 197(12) of the
Act read with Rule 5(2) and 5(3) of the Companies
(Appointment and Remuneration of Managerial
Personnel) Rules, 2014, is provided in a separate
annexure forming part of this Report.

Further, the report and the accounts are being sent
to the Members excluding the aforesaid annexure.

In terms of Section 136 of the Act, the said annexure
is open for inspection and any Member interested
in obtaining a copy of the same may write to the
Company Secretary atinvestor.relations@tcs.com.

32. Conservation of energy, technology absorption,
foreign exchange earnings and outgo

Conservation of energy

The Company is committed to reducing the impact on
the environment from its operations by proactively
taking targets and driving initiatives at strategic as well as
operational levels. The Company has identified resource
use optimisation, carbon footprint reduction and waste
management as key priority areas. The Environmental
Sustainability Policy can be accessed by clickinghere.

Energy and Climate Action

The strategic initiatives over the last few years have helped the
Company to reduce the carbon footprint (across Scope 1 and
Scope 2) by 84% over the base year of FY 2016. The Company
has envisioned a detailed plan of action by leveraging the key
carbon mitigation drivers that include green building office
infrastructure focusing on energy and resource efficiency,
operational energy efficiency, green IT and transitioning to
renewable energy through procurement and onsite generation.

Green infrastructure and energy efficiency

All new campuses owned by the Company are designed
according to green building standards for energy and
resource efficiency and have roof-top solar photovoltaic
installations to reduce the carbon footprint. The percentage
of green building certified area in India has increased
significantly over the years through conscious efforts and
in FY 2026, the green certified area in India is 79.4% of
the total built-up area compared to 71% in FY 2025. This
accounts for 52 TCS offices and campuses with over
32.58 Million sq.ft. of area under certified green building
by Indian Green Building Council ("IGBC"). This has been
instrumental in decoupling the Company's carbon footprint
from the growth in infrastructure footprint.

The Company has undertaken several operational energy
efficiency measures in the building infrastructure such as
upgradation of the Heating, Ventilation and Air Conditioning
("HVAC") systems by installing latest technology Variable
Refrigerant Flow ("VRF") systems, use of high efficiency
VRF based chillers, modular Uninterruptible Power Supply
("UPS"), life cycle-based replacement of HVAC equipment
like chillers, pumps and cooling towers, installation of
LEDs to improve energy efficiency in lighting systems,
energy optimisation through iOT based solutions,
remote monitoring, analytics and automated feedback
mechanisms (TCS Clever Energy™). The Company's
Resource Optimisation Center ("ROC") continues to help
monitor the energy use on a real-time basis to optimise it
better by leveraging AI & ML. As a commitment to energy
conservation and management, the Company continues
to implement initiatives, monitor and measure energy
performance across all its locations. During the year under

review, the Company's Energy Management Systems were
certified to ISO 50001:2018 across 21 campuses in India,
as against 22 campuses in FY 2025. The reduction is due to
closure of one previously certified campus in FY 2026.

Green IT:

The Company has undertaken several initiatives on green IT
which include data centre and IT infrastructure consolidation
and optimisation. Initiatives in green IT focused on data
centre improvement through pre-engineered, self-contained
data centre solutions such as Sustain POD, fueled with Hyper
Converge Infrastructure ("HCI") and IT device consolidation
to reduce the IT carbon footprint. These initiatives
have helped reduce the weighted average Power Usage
Effectiveness ("PUE") of the Company's centres to 1.58 in
FY 2026 when compared to 1.59 in FY 2025.

TCS' IoT-based Real-time Energy Management System
(TCS Clever Energy™) initiative involves real-time monitoring
to optimise the operational energy efficiency across all offices.
The smart, scalable, analytics driven IoT solution uses TCS
Connected Universe Platform ("TCUP") IoT platform, enabling
visualisation of data and real-time control. Other energy
optimisation initiatives include IT equipment optimisation
such as rack consolidation, server consolidation, use of energy
efficient devices, UPS optimisation, use of modular UPS,
cooling optimisation and leakage reduction. The data centres
of the Company operated on 100% renewable energy during
the year under review. The Company also ensures that green
attributes are considered in every IT asset procurement that
helps reduce the operational energy requirements.

Renewable energy:

The Company has onsite solar photovoltaic installations
of 13.1 MWp capacity at its campuses, contributing to
about 2.6% of the Company's electricity use during the
year under review. The plan of the Company is to optimise
the solar power generation at its campuses, where
feasible. The Company has continued its procurement of
renewable energy through Power Purchase Agreements
("PPAs"), availing green tariffs in India for few locations,
and procurement of Energy Attribute Certificates ("EACs")
in both India and overseas geographies. The onsite
solar generation and renewable energy procurement
have resulted in total renewable energy use of 79%
during the year.

The energy efficiency in building and IT infrastructure
has resulted in energy savings of 8,093 MWh, equivalent
to reduction of 5,759 tCO₂e emissions. There would be
further avoidance of energy consumption by about
2,656 MWh annually at new sites on account of enhanced
design and use of energy efficient equipment. The overall

capital investment in the above energy conservation
measures including that in building infrastructure and IT
infrastructure was about ?34.5 crore.

The Company has achieved 84% reduction in absolute
emissions (Scope 1 and Scope 2) when compared to the
base year of FY 2016. The electricity consumption across
the Company's operations decreased by 3% during the year
under review compared to the previous year.

Continued focus on the above initiatives will enable
the Company's aspiration to achieve its SBTi-approved
near term targets.

Technology absorption, adoption and
innovation:

Research & Development ("R&D"): Specific
areas in which R&D was carried out by the
Company

TCS Research and Innovation ("R&I") continues to develop novel
methods, technologies and platforms that can transform the art
of becoming perpetually adaptable into systematic engineering.

During the year under review, the Company undertook
several R&I projects, which include:

• A platform to expedite the modernisation of
enterprises' cryptographic systems to quantum-safe
cryptography protocols.

• An intelligent hybrid workspace platform to design,
build and orchestrate the integration of robots
(physical AI) and human workers in areas such as
warehouse operations and logistics.

• A platform to accelerate time to discover drug
molecules for novel disease targets.

• A platform for personalized treatment of cancer
patients, significantly improving treatment
effectiveness.

• An intelligent platform to facilitate the discovery and
exchange of energy assets among energy prosumers
across administrative boundaries, thereby accelerating
energy transition.

• An AI-first platform for the investigation and
intelligence value streams in law enforcement,
transforming public safety.

• A platform to create AI-powered, participatory and
immersive digital experiences to transform customer
engagement in art galleries and museums.

Strengthening IP Base

As of March 31, 2026, the Company has filed 9,596 patents
cumulatively, of which 5,500 have been granted. This
includes 1,833 patents filed for AI-led inventions, of which
573 patents have been granted.

Co-innovation with customers and partners

The Company's flagship co-innovation programme,

TCS Innovation Ecosystem continues to serve as the go-to
platform for co-innovation and business transformation.

The Company expanded the Pace footprint by launching three
innovation hubs this year - two Pace Ports in Singapore and
Sao Paulo, Brazil and a Pace Studio in Stockholm (Sweden).
The Company's ecosystem development programme,

TCS COIN™ (co-innovation network), expanded its global
footprint this year. The Company today boasts partnerships
with more than 3,000 startups and 50 academic institutes.
The Company partnered with several top-tier global
universities (including MIT, CMU, Yale, London School of
Economics, University of Tokyo, among others), as well as
Indian universities (e.g., IIT Madras, IIT Delhi, IIT Kharagpur,

IIT Bombay, IIT Kanpur, IISc Bengaluru, IIIT Hyderabad,
among others). The Company and IIT Kanpur signed MOU
of partnership to pioneer AI-powered Urban Planning for
sustainable cities.

The Company also partnered with IBM, the Government of
Andhra Pradesh and the National Quantum Mission ("NQM")
to establish Amaravati Quantum Valley ("AQV"), bringing
IBM Quantum System Two, a 133 qbit Quantum Computer
to India. AQV will be the hub of innovation and capability
building in the emerging area of Quantum Computing in India.

Creating a culture of innovation

The Company continues to focus on building a culture
of innovation across its talent value chain, through
programs like:

• TCS TechVantage Program: Launched for fostering
engineering talent within the Company. The program
recognizes technology talent within the Company by
encouraging them to submit technical papers that are
adjudged and awarded by a jury of peers. Through this
programme, over 22,000 technologists were engaged
across the Company. The Company has filed for over
700 patents this year and published over 300 papers in
top-tier international conferences and journals.

• The 13^th season of TCS CodeVita™, a global programming contest saw huge global participation. TCS CodeVita™ 2025 was

recognized with the Guiness Book of World Record as the largest programming contest. The Company broke its own record
that was established a few years ago.

Future course of action

The Company will continue to invest in the areas of AI (Gen AI and Physical AI), quantum computing, engineering, products &
platforms and sovereign, thereby staying ahead of the curve in technologies of relevance to its customers.

Technology absorption

The Company has not imported any technology during the year under review. Accordingly, the disclosures relating to technology
absorption are not applicable.

Expenditure on R&D

The Company's R&I centres are in India and other parts of the world. The research centres in India function from Pune,

Chennai, Bengaluru, Delhi-NCR, Hyderabad, Kolkata and Mumbai. The Company's Pace Port and Pace Studio innovation hubs
operate in Amsterdam, Toronto, Pittsburgh, Tokyo, New York, London, Paris, Singapore, Sao Paulo, Riyadh, Letterkenny, Sydney,
Stockholm and Manila.

Expenditure incurred in the R&D centres and innovation centres of the Company during FY 2026 and FY 2025 is given below:

Foreign exchange earnings and outgo

Export revenue constituted 93.2% of the total standalone revenue in FY 2026 (90.0% in FY 2025).

33. Acknowledgements

The Directors thank the Company's employees, customers, vendors, investors and academic partners for their continuous support.

The Directors also thank the Government of India, Governments of various states in India, Governments of various countries and
concerned Government departments and agencies for their co-operation.

The Directors appreciate and value the contribution made by every member of the TCS family.

On behalf of the Board of Directors

N Chandrasekaran

Chairman

Mumbai, April 9, 2026 DIN: 00121863