<p>Bengaluru: The country's largest IT services firm <a href="https://www.deccanherald.com/search?q=tcs">Tata Consultancy Services</a> (TCS) on Monday posted a 14% decline in its consolidated net profit at Rs 10,657 crore for December quarter compared to Rs 12,380 crore posted in the same quarter last year. The company's revenue from operations stood at Rs 67,087 crore, a 5% increase compared to Rs 63,973 crore in Q3FY25. The company in an exchange filing reported unallocable expenses amounting to Rs 5,309 crore, which includes statutory impact of new labour codes of Rs 2,128 crore. All these expenses impacted the company's Q3 profit.</p><p>The incremental impact consisted of gratuity of Rs 1,816 crore and long-term compensated absences of Rs 312 crore primarily arises due to change in wage definition, the company said in its filings.</p><p>TCS reported that its annualized AI services revenue stood at $1.8 billion, up 17.3% q-o-q in Constant Currency. The company's operating margin during the quarter stood at 25.2% and total contract value (TCV) was at $9.3 billion.</p><p>TCS Chief Executive Officer and Managing Director K Krithivasan said, “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."</p><p>The company's BFSI witnessed 1.6% y-o-y growth and its life sciences and healthcare industry grew 2.2% y-o-y in Q3.</p><p>TCS Executive Director - President and Chief Operating Officer Aarthi Subramanian said the company continued to see AI acceleration in Q3. "We helped customers identify valuable AI opportunities through Innovation Days and deployed solutions faster with Rapid Builds. Our customers continue to invest in Cloud, Data, Cyber and Enterprise Transformations to build readiness for AI. We further strengthened our Salesforce capabilities with Coastal Cloud acquisition, building on our investment in ListEngage," she said.</p><p>TCS Chief HR Officer Sudeep Kunnumal said as of Q3, the company has over 2,17,000 associates with advanced AI skills. "We doubled our intake of fresh graduates with higher order skills," he said.</p><p>TCS' total headcount was down by 11,151 employees in Q3. The company announced Rs 57 dividend, including Rs 46 per share as special dividend.</p><p>Gartner Principal Analyst Shubham Rathore said, “TCS’s latest results highlight its strategic commitment to scaling AI across industries, as enterprises shift from experimentation to practical, value-driven adoption. Gartner research finds that generative AI is entering a critical phase where organisations are focusing on proven, commercial solutions rather than ambitious internal projects. This aligns with TCS’s five-pillar AI strategy and investment in talent and partnerships, which position the company to help clients realize real business value from AI."</p>
<p>Bengaluru: The country's largest IT services firm <a href="https://www.deccanherald.com/search?q=tcs">Tata Consultancy Services</a> (TCS) on Monday posted a 14% decline in its consolidated net profit at Rs 10,657 crore for December quarter compared to Rs 12,380 crore posted in the same quarter last year. The company's revenue from operations stood at Rs 67,087 crore, a 5% increase compared to Rs 63,973 crore in Q3FY25. The company in an exchange filing reported unallocable expenses amounting to Rs 5,309 crore, which includes statutory impact of new labour codes of Rs 2,128 crore. All these expenses impacted the company's Q3 profit.</p><p>The incremental impact consisted of gratuity of Rs 1,816 crore and long-term compensated absences of Rs 312 crore primarily arises due to change in wage definition, the company said in its filings.</p><p>TCS reported that its annualized AI services revenue stood at $1.8 billion, up 17.3% q-o-q in Constant Currency. The company's operating margin during the quarter stood at 25.2% and total contract value (TCV) was at $9.3 billion.</p><p>TCS Chief Executive Officer and Managing Director K Krithivasan said, “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."</p><p>The company's BFSI witnessed 1.6% y-o-y growth and its life sciences and healthcare industry grew 2.2% y-o-y in Q3.</p><p>TCS Executive Director - President and Chief Operating Officer Aarthi Subramanian said the company continued to see AI acceleration in Q3. "We helped customers identify valuable AI opportunities through Innovation Days and deployed solutions faster with Rapid Builds. Our customers continue to invest in Cloud, Data, Cyber and Enterprise Transformations to build readiness for AI. We further strengthened our Salesforce capabilities with Coastal Cloud acquisition, building on our investment in ListEngage," she said.</p><p>TCS Chief HR Officer Sudeep Kunnumal said as of Q3, the company has over 2,17,000 associates with advanced AI skills. "We doubled our intake of fresh graduates with higher order skills," he said.</p><p>TCS' total headcount was down by 11,151 employees in Q3. The company announced Rs 57 dividend, including Rs 46 per share as special dividend.</p><p>Gartner Principal Analyst Shubham Rathore said, “TCS’s latest results highlight its strategic commitment to scaling AI across industries, as enterprises shift from experimentation to practical, value-driven adoption. Gartner research finds that generative AI is entering a critical phase where organisations are focusing on proven, commercial solutions rather than ambitious internal projects. This aligns with TCS’s five-pillar AI strategy and investment in talent and partnerships, which position the company to help clients realize real business value from AI."</p>