Mumbai: India’s leading IT services firm, Tata Consultancy Services (TCS) became the first blue-chip company to report its Q3 results for the FY 2025-26. The company reported a 13.92% year-on-year decline in net profits to ₹10,657 crore this time from ₹13,024 crore in the same period last year. The company attributed this to a one-time cost of ₹1,135 crore as it laid off almost 12,000 employees or 1% of its total workforce.
Despite this, the company’s revenues increased 4.9% to ₹67,087 crore, surpassing analysts’ expectations of ₹66,676 crore based on data compiled by LSEG.
“The growth momentum we witnessed in Q2FY26 continued in Q3FY26. We remain steadfast in our ambition to become the world’s largest AI-led technology services company, guided by a comprehensive five-pillar strategy. Our AI services now generate $1.8 billion in annualized revenue, reflecting the significant value we provide to clients through targeted investments across the entire AI stack, from Infrastructure to Intelligence.” K Krithivasan, Chief Executive Officer and Managing Director, TCS, said in a press release.
During the quarter, TCS won deals worth $9.3 billion, lower than its record $10.2 billion in the same period last year. The biggest deals announced were with British food retailer Morrisons and Danish telecom operator Telenor. Over the quarter, AI-related services generated $1.5 billion in revenues, about 5% of the total. For the software giant, this remains a positive sign, as AI revenues have grown faster than its core businesses, growing 16.3% quarter on quarter.
In November, the company announced a partnership with venture capital firm TPG to invest almost ₹18,000 crore in AI data centers in India. Besides that, the company spent $700 million to acquire a US-based Salesforce consultancy firm, Coastal Cloud, in December.
Along with the results, TCS has announced a dividend of ₹11 per share, its third interim dividend this year.
TCS’s shares were trading at ₹3,243 per share following the news on January 12.
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