Tata Consultancy Services Ltd. posted a net profit of Rs 10,657 crore in the quarter ended December 2025, which marked a slump of 11.7% as against Rs 12,075 crore in the preceding quarter.
The bottom-line has fallen short of the estimate of Rs 12,868 crore, as projected by the analysts tracked by Bloomberg.
The IT major’s revenue, however, edged 2% higher sequentially at Rs 67,087 crore, which was in line with the estimate of Rs 66,893 crore.
The earnings before interest and taxes also rose 2% to Rs 16,889 crore, as compared to Rs 16,565 crore in the preceding quarter. This was also in line with the estimates.
The EBIT margin stayed flat sequentially at 25.2%, marginally higher as against the estimate of 24.9%.
The company declared a bumper dividend of Rs 57, which comprises a third interim dividend of Rs 11 per share and a special dividend of Rs 46 a share.
TCS Q3 Results (Consolidated, QoQ)
-
Net profit down 11.7% at Rs 10,720 crore versus Rs 12,131 crore (Estimate of Rs 13,006 crore).
-
Revenue up 2% at Rs 67,087 crore versus Rs 65,799 crore (Estimate of Rs 66,849 crore).
-
EBIT margin flat at 25.2% (Estimate: 24.9%)
-
EBIT up 2% at Rs 16,889 crore versus Rs 16,565 crore (Estimate of Rs 16,732 crore)
Dividend Tops Estimates
India’s largest IT exporter announced a cumulative dividend of Rs 57 per share, which is higher than the consensus estimate of Rs 34.19 projected by the analysts tracked by Bloomberg.
The company has fixed Jan. 17 as the record to determine the shareholders eligible for the dividend payment. The amount will be paid on Feb. 3, according to the regulatory filing.
So far in the current financial year, the company has paid dividends totalling Rs 22 per share. For the full year, analysts tracked by Bloomberg expect a payout of Rs 115.72 per share.
This implies that the market expects close to Rs 94 per share in dividends over the remaining part of the financial year.
Employee Count Dips
TCS lost a total of 11,151 employees in the third quarter, with its attrition rate rising to 13.5% from 13.3% in the July-December period.
The overhaul headcount reduced to 582,163 in Q3 from 593,314 in Q2. Since the restructuring announcement in the June quarter, the employee count has slipped by 30,906.
. Read more on Earnings by NDTV Profit.