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Tata Consultancy Services Q3 FY26 results: net profit down 13.9% to ₹10,720 crore, revenue up 4.9%
Tata Consultancy Services Limited reported consolidated Q3 FY26 revenue of ₹67,087 crore, up 4.9% from Q3 FY25, while EBITDA rose to ₹18,269 crore and margin expanded to 27.2%. Net profit fell to ₹10,720 crore and basic EPS declined to ₹29.45, affected by a ₹3,391 crore exceptional charge.
Key points
- Revenue was ₹67,087 crore, up 4.9% from ₹63,973 crore in Q3 FY25 and 2.0% from ₹65,799 crore in Q2 FY26.
- EBITDA was ₹18,269 crore, up 7.3% year on year, while margin was 27.2%, 0.6 percentage points higher than Q3 FY25.
- The company reported a net profit of ₹10,720 crore, down 13.9% from ₹12,444 crore in Q3 FY25.
- Basic EPS was ₹29.45, down from ₹34.21 in Q3 FY25 and ₹33.37 in Q2 FY26.
- The board declared a third interim dividend of ₹11 per share and a special dividend of ₹46 per share.
How did Tata Consultancy Services perform in Q3 FY26?
Tata Consultancy Services reported consolidated revenue of ₹67,087 crore in Q3 FY26, up 4.9% from ₹63,973 crore in Q3 FY25 and 2.0% from ₹65,799 crore in Q2 FY26. EBITDA rose to ₹18,269 crore from ₹17,034 crore a year earlier, and the EBITDA margin increased to 27.2% from 26.6% in Q3 FY25. Against Q2 FY26, EBITDA was higher by ₹291 crore and margin was lower by 0.1 percentage point.
Net profit was ₹10,720 crore in Q3 FY26, down from ₹12,444 crore in Q3 FY25 and ₹12,131 crore in Q2 FY26. Basic EPS was ₹29.45, compared with ₹34.21 and ₹33.37, respectively. On the standalone basis, revenue was ₹55,567 crore, up 3.1%, while profit before tax was ₹10,190 crore against ₹11,832 crore in Q3 FY25.
| ₹ crore | Q3 FY26 | Q2 FY26 | Q3 FY25 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 67,087 | 65,799 | 63,973 | +4.9% | +2.0% |
| Other income | 1,118 | 867 | 1,243 | −10.1% | +29.0% |
| Total expenses | 50,736 | 49,463 | 48,550 | +4.5% | +2.6% |
| EBITDA | 18,269 | 17,978 | 17,034 | +7.3% | +1.6% |
| EBITDA margin | 27.2% | 27.3% | 26.6% | +0.6 pp | −0.1 pp |
| Profit before tax | 14,078 | 16,068 | 16,666 | −15.5% | −12.4% |
| Tax | 3,358 | 3,937 | 4,222 | −20.5% | −14.7% |
| Net profit | 10,720 | 12,131 | 12,444 | −13.9% | −11.6% |
| EPS (₹) | 29.45 | 33.37 | 34.21 | −13.9% | −11.7% |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What changed in Tata Consultancy Services' costs and profit?
Total expenses were ₹50,736 crore in Q3 FY26, up ₹2,186 crore or 4.5% from Q3 FY25. Employee cost rose ₹2,574 crore or 7.2% to ₹38,530 crore, while finance costs rose ₹304 crore or 129.9% to ₹538 crore and depreciation increased ₹3 crore or 0.2% to ₹1,380 crore. Other expenses declined ₹695 crore or 6.3% to ₹10,288 crore.
Other income was ₹1,118 crore, down ₹125 crore or 10.1% from Q3 FY25. The company reported a ₹3,391 crore exceptional charge, against no exceptional item in Q3 FY25. Tax was ₹3,358 crore, down ₹864 crore or 20.5%, while profit before tax fell ₹2,588 crore or 15.5% to ₹14,078 crore. Net profit consequently fell ₹1,724 crore or 13.9%.
| ₹ crore | Q3 FY26 | Q3 FY25 | Change | Change % |
|---|---|---|---|---|
| Cost of materials | 0 | 0 | 0 | |
| Employee cost | 38,530 | 35,956 | +2,574 | +7.2% |
| Finance costs | 538 | 234 | +304 | +129.9% |
| Depreciation | 1,380 | 1,377 | +3 | +0.2% |
| Other expenses | 10,288 | 10,983 | −695 | −6.3% |
| Total expenses | 50,736 | 48,550 | +2,186 | +4.5% |
| Other income | 1,118 | 1,243 | −125 | −10.1% |
| Tax | 3,358 | 4,222 | −864 | −20.5% |
| Exceptional items | −3,391 (charge) | none |
Source: Company's results filing (XBRL).
How did the first nine months of FY26 go?
For the first nine months of FY26, consolidated revenue was ₹1,96,323 crore, up ₹5,478 crore or 2.9% from ₹1,90,845 crore in 9M FY25. Total income rose ₹6,189 crore or 3.2% to ₹1,99,968 crore, while profit before tax fell ₹1,804 crore or 3.7% to ₹47,125 crore.
Net profit for 9M FY26 was ₹35,670 crore, down ₹834 crore or 2.3% from ₹36,504 crore in 9M FY25. Basic EPS declined to ₹98.09 from ₹100.4, a decrease of ₹2.31 or 2.3%.
| ₹ crore | 9M FY26 | 9M FY25 | Change |
|---|---|---|---|
| Revenue from operations | 1,96,323 | 1,90,845 | +2.9% |
| Profit before tax | 47,125 | 48,929 | −3.7% |
| Net profit | 35,670 | 36,504 | −2.3% |
| EPS (₹) | 98.09 | 100.40 | −2.3% |
Source: Company's results filing (XBRL).
How has Tata Consultancy Services done over the last 8 quarters?
Revenue has risen year on year in each of the last eight quarters. It peaked at ₹67,087 crore in Q3 FY26, compared with a low of ₹61,237 crore in Q4 FY24, and rose from ₹65,799 crore in Q2 FY26. Net profit moved in the opposite direction in the latest quarter, falling from ₹12,131 crore in Q2 FY26 to ₹10,720 crore.
The EBITDA margin bottomed at 26.0% in Q2 FY25 and reached 27.3% in Q2 FY26 before easing to 27.2% in Q3 FY26. Net profit peaked at ₹12,819 crore in Q1 FY26 and was lower in the two quarters that followed, at ₹12,131 crore and then ₹10,720 crore.
Which businesses drove the quarter?
Banking, Financial Services and Insurance reported revenue of ₹25,889 crore, up 10.3% from ₹23,481 crore in Q3 FY25, and EBIT of ₹6,861 crore against ₹6,403 crore. Its EBIT margin was 26.5%. Manufacturing revenue was ₹6,580 crore, up 6.2%, while EBIT was ₹1,910 crore against ₹2,042 crore and the EBIT margin was 29.0%.
Consumer Business reported revenue of ₹10,581 crore, up 5.4%, and EBIT of ₹3,089 crore against ₹2,971 crore, with an EBIT margin of 29.2%. Communication, Media and Technology revenue fell 17.4% to ₹9,902 crore, while EBIT rose to ₹2,913 crore from ₹2,390 crore; its EBIT margin was 29.4%.
Life Sciences and Healthcare reported revenue of ₹7,068 crore, up 10.0%, and EBIT of ₹1,982 crore against ₹1,816 crore, with an EBIT margin of 28.0%. Others recorded revenue of ₹7,067 crore, up 20.8%, and EBIT of ₹1,514 crore against ₹1,412 crore; the EBIT margin was 21.4%.
| Segment | Revenue | Revenue YoY | EBIT | EBIT margin |
|---|---|---|---|---|
| Banking, Financial Services and Insurance | 25,889 | +10.3% | 6,861 | 26.5% |
| Banking, Financial Services and Insurance | 25,889 | +10.3% | 6,861 | 26.5% |
| Manufacturing | 6,580 | +6.2% | 1,910 | 29.0% |
| Manufacturing | 6,580 | +6.2% | 1,910 | 29.0% |
| Consumer Business | 10,581 | +5.4% | 3,089 | 29.2% |
| Consumer Business | 10,581 | +5.4% | 3,089 | 29.2% |
| Communication, Media and Technology | 9,902 | −17.4% | 2,913 | 29.4% |
| Communication, Media and Technology | 9,902 | −17.4% | 2,913 | 29.4% |
| Life Sciences and Healthcare | 7,068 | +10.0% | 1,982 | 28.0% |
| Life Sciences and Healthcare | 7,068 | +10.0% | 1,982 | 28.0% |
| Others | 7,067 | +20.8% | 1,514 | 21.4% |
| Others | 7,067 | +20.8% | 1,514 | 21.4% |
Source: Company's results filing (XBRL segment data).
What else did the company announce?
The board approved the audited standalone and consolidated financial results for the quarter and nine-month period ended 31 December 2025. It declared a third interim dividend of ₹11 per equity share of ₹1 each and a special dividend of ₹46 per equity share.
Both dividends are payable on 3 February 2026 to shareholders whose names appear on the register of members or in the records of the depositories as beneficial owners on the record date of 17 January 2026. The company also filed the audio recording of the Q3 FY26 earnings conference call with the exchanges on 12 January 2026.
What did Tata Consultancy Services' management say?
Management maintained a no-specific-guidance stance for revenue and earnings. CEO and Managing Director K Krithivasan said, “Based on client conversation, strong deal momentum and the leadership we are gaining in AI, we are confident of a good CY2026.” He also said, “We believe this order book will help us in growing in FY '27 as well. We are now quite comfortable, Kumar, with the order book itself.”
Management reported AI services revenue of US$1.8 billion annualised, growing 17.3% quarter on quarter in constant currency. Executive Director, President and Chief Operating Officer Aarthi Subramanian said, “Our annualized AI revenue crossed US$1.8 billion with 17.3% quarter-on-quarter growth in constant currency.” Total contract value was US$9.3 billion, including a North America mega deal, while BFSI contract value was US$3.8 billion.
Management said operating margin was 25.2% and stable sequentially despite the full-quarter impact of the previous quarter’s wage increase. The CFO targeted progress towards the lower band of the 26–28% aspirational margin range. Management also cited geopolitical uncertainty, trade restrictions, evolving data and AI regulations, cautious agentic-AI implementation in BFSI, and possible Q4 wage-hike pressure on margins as risks.
How did Tata Consultancy Services shares react?
After the filing appeared after market hours, the stock was down 0.9% after five minutes, down 0.8% after 15 minutes and unchanged after 30 minutes. It closed the reaction day up 0.6% from the previous close. By the next day’s close, it was down 1.4% from its pre-results close, and by the fifth session it was down 3.7%.
The Computers - Software & Consulting industry’s other stocks recorded a median move of up 0.8% on the reaction day, up 0.0% by the next day’s close and down 4.1% by the fifth session. TCS therefore moved 0.1 percentage points below the sector median on the reaction day, 1.4 percentage points below it by the next day’s close and 0.4 percentage points above it by the fifth session.
Earlier results-day moves were mixed: the stock fell 1.1% on 9 October 2025 and 3.8% on 10 July 2025, rose 5.5% on 9 January 2025, fell 1.9% on 10 October 2024, rose 7.2% on 11 July 2024 and fell 1.6% on 12 April 2024.
| After the filing | Stock | Computers - Software & Consulting median |
|---|---|---|
| 5 minutes | −0.9% | |
| 15 minutes | −0.8% | |
| 30 minutes | +0.0% | |
| Reaction day | +0.6% | +0.8% |
| Next day | −1.4% | −0.0% |
| 5 days | −3.7% | −4.1% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
| Results filed on | Stock on the reaction day |
|---|---|
| 9 October 2025 | −1.1% |
| 10 July 2025 | −3.8% |
| 9 January 2025 | +5.5% |
| 10 October 2024 | −1.9% |
| 11 July 2024 | +7.2% |
| 12 April 2024 | −1.6% |
Source: MarketPing price-reaction measurement.
How did other Computers - Software & Consulting companies do?
Fifty-five Computers - Software & Consulting companies filed for the quarter, compared with TCS’s 4.9% revenue growth. The peer median revenue growth was 8.3%. Twenty peers grew more slowly than TCS and 35 grew faster than TCS.
Among the peers for which profit was compared, 23 reported higher profit. The peer data was as of 5 November 2026.
| Tata Consultancy Services revenue growth (YoY) | +4.9% |
|---|---|
| Median of 55 other Computers - Software & Consulting companies | +8.3% |
| Companies with slower revenue growth than Tata Consultancy Services | 20 of 55 |
| Companies with faster revenue growth than Tata Consultancy Services | 35 of 55 |
| Companies whose net profit rose | 23 of 59 |
Source: Filed results (XBRL) of the industry's companies.
Quick answers
What was Tata Consultancy Services' revenue in Q3 FY26?
Revenue from operations was ₹67,087 crore, up 4.9% from ₹63,973 crore in Q3 FY25 (consolidated).
Did Tata Consultancy Services make a profit in Q3 FY26?
Yes. Net profit was ₹10,720 crore, against a net profit of ₹12,444 crore in Q3 FY25.
What was Tata Consultancy Services' EPS in Q3 FY26?
Basic earnings per share were ₹29.45, against ₹34.21 in Q3 FY25.
How did Tata Consultancy Services shares react to the Q3 FY26 results?
On the reaction day the stock moved +0.6% from the previous close; the median Computers - Software & Consulting stock moved +0.8%.
When did Tata Consultancy Services announce its Q3 FY26 results?
On 12 January 2026, in a filing to the NSE.
Sources
- Outcome of Board Meeting (NSE, 12 January 2026) · PDF
- Dividend (NSE, 12 January 2026) · PDF
- General Updates (NSE, 12 January 2026) · PDF
- The earnings call (16 January 2026)
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
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