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As on : 12-Jan-2026
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12-Jan-2026     17:05


TCS Q3 PAT drops 12% QoQ; board declares special dividend of Rs 46/ share

The decline in profitability was impacted due to one-time exceptional charges including Rs 2,120 crore related to the statutory impact of new labour codes and it also made a provision towards a legal claim of of Rs 1,010 crore during the December quarter.

On year on year (YoY) basis, the company's consolidated net profit declined 13.92%, while revenue from operations increased 4.87% in Q3 FY26. The company's YoY performance was supported by growth in key verticals, led by Life Sciences & Healthcare (+2.2%), along with steady gains in Energy, Resources and Utilities (ERU) (+2.2%) and Technology & Services (+1.7%) in Q3 FY26.

The company's order book total contract value (TCV) stood at $9.3 billion in Q3 December 2025, lower than $10 billion in Q2 September 2025 and $9.4 billion in Q1 June 2025.

In constant currency terms, revenue growth stood at 0.8% QoQ in the Q3 FY26. Revenue from annualized AI Services stood at $1.8 billion, registering a 17.3% QoQ growth in constant currency. Operating and net margins stood at 25.2% and 20% during the quarter.

Meanwhile, the company's board declared a third interim dividend of Rs 11 per share and special dividend of Rs 46 per equity share of Rs 1 each of the company. The record date has been fixed as on Saturday, 17 January 2026 and payout will be made on Tuesday, 3 February 2026.

K Krithivasan, chief executive officer (CEO) and managing director (MD), said 'The growth momentum we witnessed in Q2FY26 continued in Q3FY26. We remain steadfast in our ambition to become the world's largest AI-led technology services company, guided by a comprehensive five-pillar strategy. Our AI services now generate $1.8 billion in annualized revenue, reflecting the significant value we provide to clients through targeted investments across the entire AI stack, from Infrastructure to Intelligence.'

Sudeep Kunnumal, chief HR officer, said 'Our associates are at the heart of our transformation into an AIfirst enterprise. As of this quarter, there are over 217,000 associates with advanced AI skills, directly powering client success at scale. We doubled our intake of fresh graduates with higher order skills, rapidly expanding our next-generation talent pool. The passion and commitment our associates show in mastering next-gen capabilities gives us the confidence to innovate responsibly and deliver sustainable value as AI reshapes the services landscape.'

TCS is a digital transformation and technology partner of choice for industry-leading organizations worldwide.

The counter rose 0.86% to end at Rs 3235.70 on the BSE.

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