TCS Q3 Results: Profit Declines Year-on-Year, Revenue Shows Steady Growth
Tata Consultancy Services (TCS) India's biggest IT service company, reported on Monday unsatisfactory results from the quarter that ended in fiscal year that ended in December 2025. Consolidated net profits fell as revenue grew.
TCS's Cons PAT sank 14 percent year-over-year, to Rs 10,657 crore in the third quarter, a decrease from 12,380 crore during the same period in last year's and reflects the pressure on margins and earnings, despite overall market trends.
Revenue from operations was up 5% from the previous year to Rs 67.087 crore which was up from 63,973 crore in the corresponding time period of the prior year's financial year that indicates continued interest in TCS earnings Q3 across the globe. Investors responded to the increase in revenue as an indication of longevity in the business model of TCS despite the fact that profit figures did not match expectations.
Alongside its TCS Q3 results, TCS declared a total interim dividend of Rs 57 per equity share for the fiscal year 2025-26. It includes a third interim dividend at Rs. 11 for each share as well as an additional rate of dividends at Rs.46 per share with the date of record set for the 17th of January, 2026 and the dividend due the 3rd of February, 2026.
Management highlighted the ongoing investment in digital transformation and artificial intelligence and noted that AI-related services remain a significant contributor to the company's revenue. The board also stressed its strategy to make use of new technologies to fuel the future growth.
The quarterly results of TCS highlight the present challenges facing Indian IT giants, which include the pressure to cut costs as well as global economic uncertainty even as the industry responds to the changing needs of clients with regard to cloud services, data and AI services.
