TCS Q3 Results: Profit Down 11.7% Even as Revenue Rises; ₹57 Dividend Declared
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Tata Consultancy Services (TCS), India’s largest IT services company, reported mixed results for the October–December quarter (Q3 FY26). While revenue growth remained steady, the company’s bottom line took a hit. The Tata Group firm also announced a total dividend of ₹57 per share, signalling confidence in cash flows despite margin pressures.
The results were disclosed after market hours on Monday, January 12, 2026.
Key Financial Performance
According to the company’s exchange filing, consolidated revenue rose 2% quarter-on-quarter to ₹67,087 crore, reflecting stable demand across key markets. However, net profit declined 11.7% year-on-year to ₹10,657 crore, indicating pressure on profitability amid global macro uncertainty and investment-led costs.
On an operational level, EBIT (Earnings Before Interest and Tax) increased 2% QoQ to ₹16,889 crore, while the EBIT margin remained flat at 25.2%, suggesting cost controls helped offset some headwinds.
The quarter showed sustained growth momentum, but profit contraction highlighted the challenges facing the IT sector, including cautious client spending and higher transformation investments.
Dividend Announcement
Alongside its earnings, TCS declared a third interim dividend of ₹11 per share and a special dividend of ₹46 per share, taking the total payout to ₹57 per share of face value ₹1. The announcement reinforces TCS’s long-standing track record of rewarding shareholders through consistent dividends.
Market Reaction
On the day of the announcement, TCS shares rose 0.86% to close at ₹3,235.70 on the BSE, outperforming the broader market slightly. The benchmark Sensex ended 0.36% higher at 83,878.17 points. The positive stock movement suggests investors were encouraged by revenue stability and the dividend payout despite profit decline.
Strategic Focus
TCS said it continues to double down on artificial intelligence and digital transformation, positioning itself for long-term growth as enterprises modernise operations. The company believes AI-led services will be a key driver in the coming quarters, even as near-term margins face pressure.
Our Thoughts
TCS’s Q3 performance reflects a familiar industry pattern — steady revenue growth but profit stress in a cautious global environment. While the profit dip may concern investors in the short term, stable margins, continued AI focus, and a generous dividend underline the company’s resilience. For long-term investors, TCS remains a bellwether of India’s IT strength amid global uncertainty.