TCSNSETata Consultancy Services Limited· Computers - SoftwareCriticalPositive
Announced Mon, 12 Jan · 15:50 IST

Tata Consultancy Services Limited has submitted to the Exchange, the financial results for the period ended December 31, 2025.

Exceptional ItemEbitda Margin CompressionContingent Liabilities IncreasedResults View source PDFExplain this filing

TCS · price

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Price reaction · full curve 14 horizons · vs prior close
-1.4%1-day move
₹3243.00
prior close
₹3245.00
base price
After-mkt
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AI summary

TCS reported consolidated revenue of ₹67,087 crore for Q3 FY26, up about 4.9% year-on-year from ₹63,973 crore. Nine-month revenue rose to ₹1,96,323 crore versus ₹1,90,845 crore last year. However, net profit for the quarter fell roughly 13.8% YoY to ₹10,720 crore, dragged by three large exceptional items: ₹2,128 crore for the new Labour Codes, ₹1,010 crore as a provision for the CSC legal claim in the US, and ₹253 crore in restructuring expenses. The board declared a third interim dividend of ₹11 per share along with a special dividend of ₹46 per share (total ₹57), with a record date of January 17, 2026 and payment on February 3, 2026. TCS also completed the ListEngage acquisition ($69M) and signed a deal to buy Coastal Cloud for $700M.

Likely market impact

Strong revenue growth was overshadowed by heavy one-time charges, pushing Q3 profit down meaningfully and squeezing operating margins. The generous dividend payout (₹57/share) signals strong cash returns to shareholders, but the CSC lawsuit provision and labour-code impact are near-term overhangs on profitability.