Tata Consultancy Services announced a dividend of ₹57.00 per share on Monday, including a special dividend of ₹46.00, reflecting the company's strong cash generation capabilities despite measured growth in the global technology spending environment. The record date has been fixed as January 17, with the dividend payout scheduled for February 3.

Financial Performance Overview

The country's largest IT services exporter reported mixed financial results for the December quarter. Revenue stood at ₹67,087.00 crore, representing a 5% increase from ₹63,973.00 crore in the same quarter last year. On a sequential basis, revenue grew 2% quarter-on-quarter with constant currency growth of 0.8%.

Net profit attributable to shareholders declined 14% to ₹10,657.00 crore from ₹12,380.00 crore a year earlier. However, net income for the quarter reached ₹13,438.00 crore, reflecting an 8.5% year-on-year increase, with net margin improving by 40 basis points sequentially to 20.00%.

Operational Metrics and Cash Generation

TCS demonstrated robust cash flow generation, with operating cash flows equivalent to 130.4% of its net income during the December quarter. Operating margin remained stable at 25.20% compared with the previous quarter, indicating disciplined cost control amid uneven demand conditions across global markets. The company's total contract value (TCV) for the quarter stood at $9.30 billion.

AI Services Drive Growth

Artificial intelligence-led services continued to be a key growth driver for the company. TCS reported annualised AI services revenue of $1.80 billion, up 17.3% quarter-on-quarter in constant currency terms. Management reiterated its ambition to become the world's largest AI-led technology services company, guided by a five-pillar strategy spanning infrastructure, platforms, applications, data, and intelligence.

Chief Executive Officer K Krithivasan emphasized the company's focus on scaling its artificial intelligence-led services portfolio, which is increasingly becoming a key driver of long-term growth and client engagement.

Market Environment and Outlook

TCS operates in an environment where clients are increasingly prioritising cost optimisation and targeted digital investments rather than large-scale transformation projects. While this approach has tempered headline growth, the company's scale, diversified client base, and strong execution capabilities continue to support margins and cash generation. The dividend announcement underscores TCS's commitment to returning excess cash to shareholders, backed by robust operating cash flows and a resilient balance sheet.

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