IT major Tata Consultancy Services (TCS) announced its third-quarter financial results for the October–December period of the current financial year on Monday. The company reported a net profit of ₹10,657 crore, marking a 14 percent decline compared to ₹12,380 crore recorded in the same quarter last year.
However, revenue growth remained steady during the quarter. TCS posted a 5 percent rise in revenue, which increased to ₹66,087 crore, up from ₹63,973 crore in the corresponding period of the previous year. This performance highlights the company’s ability to maintain topline growth despite pressure on margins.
Meanwhile, on a quarter-on-quarter basis, net profit also declined. Compared to the second quarter net profit of ₹12,075 crore, Q3 profit dropped by 12 percent. At the same time, revenue improved by nearly 2 percent, showing stable demand across key markets.
Double Dividend Announcement Boosts Investor Sentiment
Along with the Q3 results, TCS announced a double dividend, offering relief to shareholders. The company declared a third interim dividend of ₹11 per share. In addition, the board approved a special dividend of ₹46 per equity share.
The company fixed January 17 as the record date for dividend eligibility. TCS confirmed that dividend payments will be made on February 3.
Strong Order Book and AI Growth
Speaking on the results, TCS CEO and Managing Director K. Krithivasan expressed confidence in future growth. He stated that the company continues to see strong demand across sectors. Notably, revenue from artificial intelligence-related services grew 17 percent, reaching $1.8 billion during the quarter.
Moreover, TCS secured new deals worth $9.3 billion, strengthening its order pipeline and long-term growth prospects.
Workforce Declines, Labour Code Impact Noted
At the same time, TCS reported a decline in its workforce. During the December quarter, the company reduced its employee count by 11,151, bringing the total workforce to 5,82,163.
Additionally, TCS revealed that the new labour code had an adverse impact of ₹2,128 crore on its financials.
Share Price Reaction
Following the announcement of results, TCS shares closed 0.86 percent higher on the BSE at ₹3,235.70, reflecting cautious optimism among investors.
Overall, while profit margins faced pressure, steady revenue growth, strong deal wins, and generous dividends helped TCS maintain investor confidence.
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