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Informist, Monday, Jan. 12, 2026

 

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--Oct-Dec consol net profit INR 106.57 bln
--Analysts saw TCS Oct-Dec consol net profit at INR 129.79 bln
--Oct-Dec consol revenue INR 670.87 bln
--Analysts saw TCS Oct-Dec consol revenue at INR 668.01 bln
--Oct-Dec consol net profit INR 106.57 bln vs INR 120.75 bln quarter ago
--Oct-Dec consol revenue INR 670.87 bln vs INR 657.99 bln quarter ago
--To pay INR 11/share interim dividend, INR 46/share special dividend
--Q3 consol employee expense INR 385.30 bln vs INR 386.06 bln quarter ago
--Apr-Dec consol net profit INR 354.92 bln vs INR 363.29 bln year ago
--Interim dividend, special dividend record date is Saturday
--Apr-Dec consol revenue INR 1.96 tln vs INR 1.91 tln year ago
--Oct-Dec consol BFSI revenue INR 258.89 bln vs INR 257.17 bln quarter ago
--Oct-Dec consol mfg revenue INR 65.80 bln vs INR 66.31 bln quarter ago
--Oct-Dec PAT includes one-time cost of INR 21.28 bln on new labour codes
--Oct-Dec consol consumer sales INR 105.81 bln vs INR 103.51 bln quarter ago
--Oct-Dec PAT includes one-time cost of INR 10.10 bln towards legal claim
--Q3 consol comm, media, tech sales INR 99.02 bln vs INR 98.02 bln QoQ
--Oct-Dec PAT includes one-time restructuring cost of INR 2.53 bln
--Q3 consol life, health sales INR 70.68 bln vs INR 68.84 bln QoQ
--Oct-Dec consol revenue up 0.8% on qtr in constant currency
--Oct-Dec consol operating margin 25.2%, unch on quarter
--Oct-Dec order book total contract value $9.3 bln
--Oct-Dec BFSI segment revenue down 0.4% on qtr in constant currency
--Oct-Dec consumer ops sales up 1.3% QoQ in constant currency
--Oct-Dec life sciences, health sales up 0.9% QoQ in constant currency
--Oct-Dec manufacturing sales up 0.2% QoQ in constant currency
--Oct-Dec tech, svcs sales dn 1.3% on qtr in constant currency
--Q3 annualised AI svcs revenue $1.8 bln, up 17% QoQ in constant currency
--Oct-Dec regional mkts, others sales up 4.6% QoQ in constant currency
--Oct-Dec North America sales up 0.1% on qtr in constant currency
--Oct-Dec Latin America sales up 4.6% on qtr in constant currency
--COO Subramanian: Continued to see AI acceleration in Oct-Dec
--Oct-Dec UK revenue down 1.9% on qtr in constant currency
--Oct-Dec revenue from India up 8% on qtr in constant currency
--Total employee count 582,163 as on Dec 31 vs 593,314 as on Sept 30
--Oct-Dec IT services trailing 12-mo attrition 13.5% vs 13.3% quarter ago
--Clients with 12-mo svcs sales above $100 mln at 62 in Q3 vs 60 quarter ago

 

By Sunil Raghu

 

AHMEDABAD – Tata Consultancy Services Ltd. Monday reported a fall in its bottom line for the December quarter due to one-time costs of INR 33.91 billion from the trailing quarter. However, without one-time costs, the consolidated net profit of the company would have been up 6% quarter on quarter.

 

The IT behemoth's consolidated net profit fell nearly 12% sequentially to INR 106.6 billion, lower than the INR 130 billion that broking firms had expected. However, without one-time costs, the net profit of TCS would be at INR 140.51 billion, compared with INR 121.31 billion in the September quarter. Its revenue rose nearly 4% from the previous quarter to INR 670.87 billion, higher than the INR 668.01 billion that brokerages had expected. 

 

The Oct-Dec consol revenue was up from INR 657.99 billion a quarter ago. In constant currency terms, the company's revenue grew 0.8% sequentially, which is in line with brokerages estimate of TCS' revenue for the quarter under review to be flat or grow only marginally. The key "other" costs that put pressure on the IT behemoth's net profit include statutory impact of new labour codes to the tune of INR 21.3 billion, provision towards legal claim of INR 10.1 billion and restructuring expenses to the tune of INR 2.5 billion. However, for the September quarter, the company's restructuring costs were higher at 11.4 billion. 

 

The IT giant's operating margin was flat on quarter at 25.2%. This is better than the average of 30-basis-point fall 12 analysts had expected. Most analysts expected the IT major to report aggregate deal wins in the $8 billion–$10 billion for the December quarter. TCS Monday said its order book total contract value during December quarter stood at $9.3 billion. It had bagged new deals worth $10 billion in the September quarter.

 

During the reporting quarter, the IT major's total expenses increased nearly 3% on quarter to INR 507 billion, primarily led by over 9% rise in other expenses to INR 90.26 billion. Its equipment and software licences costs during the December quarter, too, rose over 30% to INR 12.82 billion and finance costs jumped nearly 135% from the trailing quarter to over INR 5 billion. Its consolidated employee expenses fell marginally to INR 385.30 billion in the December quarter, from INR 386.06 billion in September quarter. As of Dec. 31, its total employee count stood at 582,163 compared with 593,314 as of Sept. 30.

 

For the nine months ended December, the IT giant's consolidated net profit fell to INR 354.92 billion from INR 363.29 billion a year ago but revenue grew to INR 1.96 trillion, from INR 1.91 trillion a year ago. "Our sustained margin performance and strong cash conversion this quarter, reflects our disciplined execution and financial resilience. Backed by a robust balance sheet, we continue to invest confidently in strategic growth areas," Chief Financial Officer Samir Seksaria said. The company announced that it would pay INR 11 per share as interim dividend and INR 46 a share as special dividend. It has fixed Saturday as the record date for both, interim and special dividends.

 

SEGMENTS

All verticals, except manufacturing, posted on-quarter growth in revenue in rupee terms. In constant currency terms, barring the banking, financial services and insurance and technology and services segment, revenue from all other segments registered a growth ranging from 0.2-4.6% from the trailing quarter. While on the year-on-year basis, consumer business, and communication and media saw a negative growth in revenue in constant currency terms.

 

Its core segment--banking, financial services, and insurance--grew merely 0.7% quarter-on-quarter to INR 258.89 billion. However, in constant currency terms, the segment fell 0.4% on quarter. The revenue contribution from the segment constituted nearly 32% of the company's overall top line. The revenue from its second-largest business--consumer--rose over 2% on quarter to INR 105.81 billion. In constant currency terms, too, revenue rose 1.3% from the trailing quarter but fell nearly 3% on year. This segment accounts for over 15% of the IT giant's overall revenue. Life sciences and healthcare business, the third-biggest vertical of TCS, saw the fastest growth among all verticals, up nearly 3% on quarter at INR 70.68 billion. While the top line in constant currency terms grew nearly 1% on quarter and over 2% on year.

 

The manufacturing vertical saw a near 1?ll on quarter to INR 65.8 billion but was up 0.2% in constant currency terms. The consolidated revenue for communications, media and technology came in at INR 99.02 billion, up a little over 1% from the trailing quarter. In constant currency terms, it was down 1.3% from the September quarter. The verticals accounted for nearly 9% and over 8% of the company's overall top line in the latest quarter, respectively.

 

Meanwhile, the annualised revenue from artificial intelligence services stood at $1.8 billion, up 17% on a trailing basis in the constant currency terms. Aarthi Subramanian, executive director - president and chief operating officer, in a press release said that the company continued to see AI acceleration in December quarter. "We helped customers identify valuable AI opportunities through Innovation Days and deployed solutions faster with Rapid Builds," she added.
 

GEOGRAPHIES

Business in the Americas saw modest growth amid concern over US tariffs, recently announced stringent visa policies, and uncertainty about further policies under President Donald Trump. Revenue from North America, which constitutes almost 49% of the company's top line, rose 0.1% from the trailing quarter and 1.3% on year in constant currency terms. Latin America revenue was up nearly 5% on quarter and up over 1% on year.

 

In Europe, revenue from the UK declined nearly 2% on quarter and over 3% on year in constant currency terms. For continental Europe, the company's revenue grew over 2% on quarter and over 1% on year. The UK constituted about 17% of the company's revenue, while continental Europe accounted for nearly 16%. In constant currency terms, revenue from India markets and regional markets, which accounted for about 9% of total revenue in December quarter, was up 8% and nearly 5% on quarter, respectively.

 

TCS released its quarterly results after market hours. Monday, its shares closed 1% higher at INR 3,239.60 on the National Stock Exchange.  End

 

US$1 = INR 90.15

 

Edited by Akul Nishant Akhoury

 

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