MUMBAI, January 12, 2026
Tata Consultancy Services (TCS), India’s largest IT services company, reported a mixed performance for the third quarter of fiscal year 2025-26, with a sharp decline in net profit offset by revenue growth and strong momentum in artificial intelligence (AI) business.
The company’s consolidated net profit fell 13.91% year-on-year to ₹10,657 crore in the October-December quarter, down from ₹12,380 crore in the same period last year and lower than ₹12,075 crore in the preceding September quarter.
Revenue from operations, however, rose 4.86% to ₹67,087 crore compared to ₹63,973 crore a year earlier. Operating profit margin remained steady at 25.2%, matching the previous quarter and improving from 24.5% in the year-ago period.
TCS saw a headcount reduction of 11,151 employees during the quarter. Total contract value (TCV) of new deals stood at $9.3 billion.
CEO and Managing Director K. Krithivasan highlighted robust growth in AI, with annualised revenue from the segment increasing over 17% to more than $1.8 billion. He noted continued momentum from the previous quarter.
On the results announcement day, TCS shares on the BSE closed 0.86% higher at ₹3,235.70. The results reflect ongoing global economic challenges for the IT sector, balanced by resilience in emerging technologies and operational efficiency.
