Tata Consultancy Services is expected to report steady but muted growth in the December quarter, with brokerages forecasting cautious performance amid ongoing client spending constraints. An average of five brokerages projects revenue growth of about 5% year-on-year and profit growth of around 6%, reflecting the challenging operating environment for IT services companies.

Financial Performance Projections

Based on brokerage estimates, TCS's Q3 performance is expected to show modest growth across key metrics:

Revenue Outlook: Currency and Regional Dynamics

YES Securities expects TCS to post revenue of about ₹67,390 crore, implying 5.3% year-on-year and 2.4% quarter-on-quarter growth. In constant currency terms, growth is expected to remain muted, reflecting weak discretionary spending and softness in the India business.

Axis Securities estimates 2.6% sequential topline growth, supported by traction in BFSI, hi-tech sectors and favourable cross-currency movements. However, Kotak Equities expects flat revenues quarter-on-quarter, with growth in international markets offset by a decline in domestic business.

Margin Pressure from Multiple Factors

Margins are expected to remain under pressure during the quarter due to several operational factors:

Kotak Equities expects margins to remain broadly stable, with rupee depreciation partly offsetting the impact of investments and employee-related costs.

Deal Pipeline and Strategic Focus Areas

Brokerages expect total contract value (TCV) of $10-11 billion for the quarter. Kotak Equities noted unconfirmed media reports of a large telecom deal win, which could support medium-term growth visibility.

Key areas of investor focus include:

• Management commentary on deal momentum and client budgets for CY26
• GenAI adoption progress and implementation
• GCC-related opportunities and expansion
• Clarity on margin aspirations and data centre investments
• Impact of rising competitive intensity in the IT services sector

Investors will closely track guidance on revenue acceleration, progress in large deal closures, and management's outlook on discretionary tech spending amid global macro uncertainty.

Three companies have announced dividend record dates for the current week, presenting opportunities for income-focused investors. Under India's T+1 settlement cycle, investors must purchase shares before the record date to qualify for dividend payments, as shares bought on the record date itself will not be eligible.

Key Dividend Announcements

The following companies have set their dividend record dates for this week:

Tata Consultancy Services Dividend Details

Tata Consultancy Services announced on December 23, 2025, that it will consider paying a third interim dividend for fiscal 2026 in January, pending board approval. The company has fixed January 17, 2026, as the record date for this potential dividend payment.

The dividend amount will be declared alongside the company's third-quarter financial results. According to the company's official statement, "The third interim dividend, if declared, shall be paid to the equity shareholders of the Company whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Saturday, January 17, 2026 which is the Record Date fixed for the purpose."

Other Dividend Announcements

Taal Tech Ltd. has declared a substantial interim dividend of ₹35.00 per equity share, with the board setting January 16, 2026, as the record date for dividend payment eligibility.

Jaro Institute of Technology Management and Research has also established January 16, 2026, as its record date for dividend payment purposes, though the specific dividend amount has not been disclosed.

Important Investment Considerations

Investors interested in these dividend payments must understand the T+1 settlement mechanism. For shares with a record date of January 16, 2026, investors must purchase the stock by January 15, 2026, to be eligible for the dividend. The ex-dividend date, which precedes the record date, marks when the share price typically adjusts to reflect the upcoming dividend payout.

This adjustment ensures that new buyers after the ex-dividend date do not receive the dividend payment, while existing shareholders who held the stock before this date remain eligible for the distribution.