Tata Consultancy Services , Tata Group's largest company and India's largest IT services provider, reported Q3 results on January 12 that were largely in line with street expectations across most parameters. While revenue growth remained steady and margins held firm, one-time costs significantly impacted the company's net profit for the quarter.

Financial Performance Overview

The company's quarterly performance reflected mixed results, with revenue meeting projections but profitability facing headwinds from regulatory and legal provisions.

One-time Impact on Profitability

Net profit for the quarter declined 12% sequentially from ₹12,075 crore in September to ₹10,657 crore. This decline was primarily attributed to significant one-time charges that affected the bottom line.

These provisions totaling over ₹3,100 crore substantially impacted the company's profitability for the quarter, despite operational performance remaining stable.

AI Services Drive Growth Momentum

TCS highlighted significant progress in artificial intelligence services during its recent analyst day. The company has successfully executed over 5,000 AI engagements, demonstrating strong client adoption of AI-powered solutions.

The management emphasized that AI services are growing significantly ahead of overall revenue growth, with 16.3% sequential growth and 38.2% year-on-year growth in constant currency terms.

New Age Services Outlook

TCS expressed confidence in its new age services portfolio, projecting these offerings to contribute nearly $11 billion in annualized revenue. This represents a substantial portion of the company's revenue base and indicates strong positioning in emerging technology areas.

Market Response

Shares of TCS recovered from intraday lows to close 0.8% higher at ₹3,233.30 before the earnings announcement, suggesting investor confidence despite the one-time profit impact.

Tata Consultancy Services has announced a dividend of ₹57.00 per share according to an exchange filing dated Monday, January 12, 2026. The dividend declaration by the IT services major follows standard regulatory disclosure requirements for listed companies.

Dividend Declaration Details

The dividend announcement was communicated through an official exchange filing, ensuring transparency and compliance with market regulations. The declared amount represents the per-share payout that eligible shareholders will receive.

Regulatory Compliance

The announcement follows proper regulatory channels through exchange filings, ensuring all stakeholders receive timely information about the dividend declaration. Such filings are mandatory for listed companies to maintain transparency in corporate actions affecting shareholders.

Shareholders and market participants can access the complete details through the official exchange filing dated January 12, 2026. The dividend declaration reflects the company's commitment to returning value to its shareholders through regular distributions.