Tata Consultancy Services (TCS), India’s largest IT services company, on Monday reported a sharp fall in profit for the third quarter of FY26, even as revenue posted modest growth.
The company’s consolidated net profit declined 13.9 percent year-on-year to ₹10,657 crore in the third quarter of 2025-26 (Q3FY26), compared with ₹12,380 crore in the same period last year. On a sequential basis, profit fell 11.7 percent from ₹12,075 crore in the September quarter.
Revenue from operations rose 4.9 percent year-on-year to ₹67,087 crore from ₹63,973 crore in Q3FY25. Compared with the previous quarter, revenue increased 2 percent from ₹65,799 crore. In constant currency terms, revenue growth stood at 0.8 percent during the quarter.
TCS said its bottom line was hit by exceptional items, including provisions linked to the implementation of new labour codes, legal claims and restructuring costs.
The company provided ₹2,128 crore towards the statutory impact of the new labour codes. This included ₹1,816 crore for gratuity and ₹312 crore for long-term compensated absences, largely due to changes in the definition of wages under the new rules.
Despite the profit decline, TCS announced a generous shareholder payout. The board approved an interim dividend of ₹11 per share along with a special dividend of ₹46 per share, taking the total dividend to ₹57 per share.
