TCS Q3 Results: Net Profit Drops 11.7% to ₹10,657 Crore, Misses Estimates; Revenue Grows 2%

Tata Consultancy Services delivered mixed results for the quarter ended December 2025, with net profit declining significantly while revenue showed modest growth. The IT services major's bottom line fell short of analyst expectations, though operational margins remained resilient.

Financial Performance Overview

The company's financial metrics for Q3 present a contrasting picture of sequential performance:

Metric	Q3 Performance	Previous Quarter	Sequential Change
Net Profit	₹10,657.00 crore	₹12,075.00 crore	-11.7%
Revenue	₹67,087.00 crore	₹65,791.00 crore*	+2.0%
EBIT	₹16,889.00 crore	₹16,565.00 crore	+2.0%
EBIT Margin	25.2%	25.2%	Flat

*Previous quarter revenue calculated based on sequential growth

Analyst Expectations vs Actual Results

The quarterly results showed mixed performance against market expectations. Net profit of ₹10,657.00 crore significantly missed the Bloomberg analyst consensus of ₹12,868.00 crore, representing a shortfall of approximately 17.2%. However, revenue performance aligned closely with projections:

Parameter	Actual Result	Analyst Estimate	Variance
Net Profit	₹10,657.00 crore	₹12,868.00 crore	-17.2%
Revenue	₹67,087.00 crore	₹66,893.00 crore	+0.3%
EBIT Margin	25.2%	24.9%	+30 bps

Operational Metrics and Margins

Despite the decline in net profit, Tata Consultancy Services maintained operational stability. Earnings before interest and taxes grew 2.0% sequentially to ₹16,889.00 crore, demonstrating resilient operational performance. The EBIT margin remained flat at 25.2%, which exceeded analyst expectations of 24.9% by 30 basis points.

Dividend Declaration

Alongside the quarterly results, the company announced a substantial dividend of ₹57.00 per share, marking a significant return to shareholders despite the sequential profit decline.

The mixed quarterly performance reflects the challenging operating environment while highlighting the company's ability to maintain revenue growth and operational margins. The substantial dividend declaration demonstrates management's confidence in the business fundamentals and commitment to shareholder returns.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.99%	-0.34%	+0.98%	-4.26%	-19.79%	+1.99%

Tata Consultancy Services reported mixed financial results for the December quarter, with consolidated net profit declining despite revenue growth. The IT services major posted a 14% year-on-year decline in profit after tax attributable to shareholders, highlighting the challenging operating environment in the technology sector.

Financial Performance Overview

The company's Q3 FY26 results showed contrasting trends in profitability and revenue metrics:

Metric	Q3 FY26	Q3 FY25	YoY Change
Consolidated Net Profit	₹10,657.00 crore	₹12,380.00 crore	-14%
Revenue from Operations	₹67,087.00 crore	₹63,973.00 crore	+5%

Sequential Quarter Comparison

Comparing with the immediate previous quarter, TCS showed modest revenue growth but continued pressure on profitability:

Parameter	Q3 FY26	Q2 FY26	QoQ Change
Net Profit	₹10,657.00 crore	₹12,075.00 crore	-12%
Revenue	₹67,087.00 crore	₹65,799.00 crore	+2%

Dividend Announcement

The company announced significant shareholder returns through dividend distribution for FY26:

Dividend Component	Amount per Share
Third Interim Dividend	₹11.00
Special Dividend	₹46.00
Total Interim Dividend	₹57.00

Key Dates and Payment Details

Shareholders should note the following important dates for dividend eligibility and payment:

Record Date: Saturday, January 17, 2026
Payment Date: Tuesday, February 3, 2026

The dividend comprises both regular interim distribution and a special dividend component, reflecting the company's commitment to returning value to shareholders despite the current quarter's profit decline. The substantial dividend announcement of ₹57.00 per equity share demonstrates management's confidence in the company's cash generation capabilities and long-term prospects.