Tata Consultancy Services has acquired 100% partnership interest in BBY Services India LLP for a cash consideration of ₹1 lakh. The deal, executed on October 1, 2026, aims to establish an AI Native Capability Center and enhance AI-led transformation capabilities.

The acquisition was approved by the Investment Committee empowered by the Board of Directors. The completion of the transaction is subject to the fulfilment of conditions precedent specified in the agreement, with an indicative timeline of 3 to 4 weeks from the date of signing. The target entity, incorporated in Bengaluru in 2023, operates in the Information Technology and IT Enabled Services sector.

Strategic Rationale and Capabilities

The primary objective of the acquisition is to deliver services through a Human + AI operating model and generate incremental revenue opportunities. BBY Services India LLP employs approximately 450 professionals engaged in Engineering, Data & Analytics, and AI capabilities. This move aligns with TCS's strategy to deepen its expertise in artificial intelligence and data analytics domains.

The transaction does not fall within the ambit of related party transactions, and promoter or promoter group companies do not hold any interest in the entity being acquired. No governmental or regulatory approvals are required for this acquisition.

Financial Performance of Target Entity

BBY Services India LLP has demonstrated rapid revenue growth since its incorporation. The entity reported nil turnover in FY24, followed by significant expansion in subsequent years.

What the Numbers Show

The acquisition price of ₹1 lakh contrasts sharply with the target’s FY26 turnover of ₹294.53 crore. This disparity suggests that the valuation may be driven by strategic asset acquisition, such as intellectual property, talent retention, or contractual rights, rather than traditional earnings multiples. The rapid scaling from zero revenue in FY24 to nearly ₹300 crore in FY26 indicates a high-growth trajectory, making the low entry cost a notable feature of the deal structure disclosed in the regulatory filing.

Tata Consultancy Services has fixed Wednesday, October 14, 2026 as the record date for the second interim dividend, subject to approval by the Board of Directors.

The Board meeting to consider the declaration is scheduled for Thursday, October 8, 2026. Shareholders whose names appear in the Register of Members or depository records on the record date will be eligible for the payout.

Tax Compliance and Document Submission

Under the Income Tax Act, 2025, dividend income is taxable in the hands of shareholders, and the company is required to deduct tax at source (TDS) at prescribed rates. The applicable rate varies based on residential status and submitted documents. Individual shareholders with incorrect, invalid, or unlinked PAN details may face higher TDS rates, with potential loss of credit under Section 397 of the Act.

To avail tax exemptions for dividends declared in FY26-27, eligible shareholders must submit specific documents by Friday, October 9, 2026, at 11:59 pm IST. Submissions can be made via depository platforms (CDSL/NSDL) or directly to the company’s registrar.

Required Documents for Tax Exemption

Payment Logistics

Dividends for shareholders holding physical shares will be paid exclusively through electronic mode. This payment is contingent upon the folio being KYC compliant, which requires registering PAN, contact details, bank account information, and specimen signatures with the Registrar and Share Transfer Agent. The company encourages all shareholders to provide nomination choices to ensure smooth transmission of securities and prevent unclaimed assets.