Tata Consultancy Services announced its audited financial results for the quarter and nine-month period ended December 31, 2025, revealing mixed performance amid significant exceptional charges. The IT services giant reported consolidated revenue growth but faced profitability pressures due to one-time expenses and regulatory impacts.

Financial Performance Overview

The company's consolidated financial results showed revenue from operations of ₹67,087 crore for Q3FY26, representing growth from ₹63,973 crore in the corresponding quarter of the previous year. However, net profit attributable to shareholders declined to ₹10,657 crore from ₹12,380 crore in Q3FY24.

For the nine-month period ended December 31, 2025, the company reported revenue from operations of ₹1,96,323 crore compared to ₹1,90,845 crore in the corresponding period of the previous year, while net profit stood at ₹35,492 crore versus ₹36,329 crore.

Exceptional Items Impact

The quarter's performance was significantly affected by exceptional items totaling ₹3,391 crore, which included three major components:

The restructuring expenses relate to the company's initiative announced in July 2025 to release certain associates whose deployment may not be feasible. The statutory impact of new Labour Codes stems from the Government of India's notification of four consolidated labour laws on November 21, 2025, primarily affecting gratuity and long-term compensated absences due to changes in wage definition.

Segment Performance

The company's segment-wise revenue performance showed varied results across different verticals:

Banking, Financial Services and Insurance remained the largest segment, contributing ₹25,889 crore in revenue, while Communication, Media and Technology experienced a decline from the previous year.

Legal Developments and Acquisitions

The company made a provision of ₹1,010 crore related to the ongoing legal case with Computer Sciences Corporation (CSC). On November 21, 2025, the Fifth Circuit affirmed the District Court's liability rulings but vacated the previously granted injunction. The company has filed petitions for rehearing, which were denied on December 19, 2025.

On the acquisition front, TCS completed the purchase of ListEngage Midco, LLC and its subsidiary ListEngage, LLC on October 10, 2025, for $69 million (₹610 crore). The company also signed a definitive agreement to acquire Coastal Cloud Holdings, LLC for $700 million (₹6,294 crore).

Dividend Declaration

Despite the challenging quarter, the Board of Directors declared a third interim dividend of ₹11.00 per equity share and a special dividend of ₹46.00 per equity share. The combined dividend of ₹57.00 per share will be paid on February 3, 2026, to shareholders on record as of January 17, 2026.

The results were approved by the Board of Directors at their meeting held on January 12, 2026, and have received an unmodified audit opinion from the statutory auditors.

Tata Consultancy Services announced its financial results for the December quarter on Monday, January 12, showing a decline in profitability compared to the same period last year. The IT major's consolidated profit fell to ₹10,657.00 crore, marking a significant year-on-year decrease.

Financial Performance Overview

The company's quarterly results demonstrate the impact of market conditions on its bottom line during the December quarter of the current financial year.

Quarter-on-Quarter Analysis

The 14% year-on-year decline in consolidated profit represents a substantial decrease of ₹1,723.00 crore compared to the December quarter of the previous financial year. This performance reflects the operational challenges and market dynamics that influenced TCS's financial results during the reporting period.

The results announcement on January 12 provides stakeholders with insights into the company's performance during the third quarter, though comprehensive details regarding revenue figures and other operational metrics were not disclosed in the initial reporting.