TCS Q3 results today: Deal wins, wage hike impact, furloughs, dividend & more
TCS Q3 results: Nomura India expects flattish profit at Rs 12,298 crore on 3.7 per cent YoY rise in sales at Rs 66,326 crore. In dollar terms, revenue is seen falling 1.1 per cent YoY to $7,452 million.
- Jan 12, 2026,
- Updated Jan 12, 2026 8:45 AM IST
Tata Consultancy Services Ltd (TCS) is all set to declare December quarter results and its third interim dividend for the ongoing financial year, if any, today. Analysts advised investors to focus on the outlook on restructuring and its impact on business, client discretionary spend in wake of rising macro volatility in US, commentary on cost takeout projects and BFSI vertical. The largest IT firm by revenues is expected to report a nil to 6 per cent rise in net profit on 4-6 per cent jump in net sales. Ebit margin is likely to be hit sequentially by two-month impact of wage hikes and the continuation of redundancy costs, analysts said. Nomura India expects flattish profit at Rs 12,298 crore on 3.7 per cent YoY rise in sales at Rs 66,326 crore. In dollar terms, revenue is seen falling 1.1 per cent YoY to $7,452 million (down 0.2 per cent YoY. Revenue may rise 0.5 per cent YoY, it said entirely driven by developed markets. It sees Ebit margin at 24.5 per cent, flat YoY or down 70 basis points QoQ. "We expect EBIT margin to be fall 70bps QoQ due two months of salary negated partly from currency depreciation and operational rigour. Deal wins should range exceed USD10bn given a few large deal announcements," it said. Systematix Institutional Equities sees a flattish 0.2 per cent QoQ growth in TCS’ revenue in dollar terms, mainly impacted by seasonal furloughs and lower working days despite a resilient TCV (total contract value). "In the preceding quarter, growth was primarily driven by the UK, Asia Pacific, Continental Europe, and MEA (Middle East Asia) markets, with the US and India markets recording muted growth - a trend we believe the company could replicate. We estimate flattish margins during the quarter, factoring in two month's impact of wage hike and furloughs offset by the benefit from currency tailwinds, pyramid optimization, and AI-led productivity gain," it said. Motilal Oswal Financial Services (MOFSL) expected TCS to report a 5.1 per cent year on year rise in net profit at Rs 13,080 crore, on a 4.1 per cent year on year increase in sales to Rs 66,570 crore. The brokerage said the company may post 0.5 per cent quarter on quarter revenue growth in constant currency terms, with international business growing 0.5 per cent, aided by BSNL ramp-up. Inorganic contribution from ListEngage was expected to be around 0.1 per cent. MOFSL said near-term demand outlook, client technology budgets, AI data centres and deal wins would be key monitorables. It added that recent acquisitions of ListEngage and Coastal Cloud provided growth support in the near term, while commentary on synergy realisation would be tracked. Axis Securities expected TCS to report 2.6 per cent quarter on quarter topline growth, driven by BFSI, hi-tech and cross-currency tailwinds. It said Ebit margins were expected to decline by 28 basis points during the quarter due to wage hikes, higher investments and fewer working days. Axis Securities pegged net profit at Rs 13,163 crore, up 5.8 per cent year on year, with revenue rising 5.6 per cent year on year to Rs 67,526 crore. “All eyes are on the deal pipeline, vertical commentary and outlook on the BSNL advance purchase order,” Axis Securities said. Nirmal Bang Institutional Equities expected profit after tax to rise 4.1 per cent year on year to Rs 13,016 crore, on a 5.1 per cent year on year increase in sales to Rs 67,648 crore. It said Ebit margin may come in at 24.5 per cent, compared with 25.2 per cent in the September quarter and 24.8 per cent in the year-ago quarter. The brokerage had a target price of Rs 3,861 on the stock. On deal wins, Kotak Institutional Equities expected total contract value in the range of $10 billion to $11 billion for the quarter. It noted unconfirmed media reports suggesting TCS had won a mega deal in the telecom vertical. Nirmal Bang Institutional Equities said total contract value may come in above the guided range of $7 billion to $9 billion, despite some delays in decision making. Kotak Institutional Equities said investor focus would be on the company’s renewed aggression and investments to accelerate growth, including measures to improve revenue growth, wallet share shifts in developed markets, the deal pipeline, client budgets for calendar year 2026, GenAI revenues, enterprise adoption and the deflationary impact on spends. It also said investors would track the impact of global capability centre ramp-up on growth, progress on planned data centre investments, areas for inorganic investments and margin aspirations amid elevated competitive intensity. “We will look out for comments on the remaining lay-offs and impacts, if any. Apart from this, we will look out for further details in respect of the data centre business during the earnings concall,” Nirmal Bang said. If declared, the interim dividend will be paid to equity shareholders whose names appear in the register of members or in the records of the depositories as beneficial owners as of Saturday, January 17, 2026.
Tata Consultancy Services Ltd (TCS) is all set to declare December quarter results and its third interim dividend for the ongoing financial year, if any, today. Analysts advised investors to focus on the outlook on restructuring and its impact on business, client discretionary spend in wake of rising macro volatility in US, commentary on cost takeout projects and BFSI vertical. The largest IT firm by revenues is expected to report a nil to 6 per cent rise in net profit on 4-6 per cent jump in net sales. Ebit margin is likely to be hit sequentially by two-month impact of wage hikes and the continuation of redundancy costs, analysts said. Nomura India expects flattish profit at Rs 12,298 crore on 3.7 per cent YoY rise in sales at Rs 66,326 crore. In dollar terms, revenue is seen falling 1.1 per cent YoY to $7,452 million (down 0.2 per cent YoY. Revenue may rise 0.5 per cent YoY, it said entirely driven by developed markets. It sees Ebit margin at 24.5 per cent, flat YoY or down 70 basis points QoQ. "We expect EBIT margin to be fall 70bps QoQ due two months of salary negated partly from currency depreciation and operational rigour. Deal wins should range exceed USD10bn given a few large deal announcements," it said. Systematix Institutional Equities sees a flattish 0.2 per cent QoQ growth in TCS’ revenue in dollar terms, mainly impacted by seasonal furloughs and lower working days despite a resilient TCV (total contract value). "In the preceding quarter, growth was primarily driven by the UK, Asia Pacific, Continental Europe, and MEA (Middle East Asia) markets, with the US and India markets recording muted growth - a trend we believe the company could replicate. We estimate flattish margins during the quarter, factoring in two month's impact of wage hike and furloughs offset by the benefit from currency tailwinds, pyramid optimization, and AI-led productivity gain," it said. Motilal Oswal Financial Services (MOFSL) expected TCS to report a 5.1 per cent year on year rise in net profit at Rs 13,080 crore, on a 4.1 per cent year on year increase in sales to Rs 66,570 crore. The brokerage said the company may post 0.5 per cent quarter on quarter revenue growth in constant currency terms, with international business growing 0.5 per cent, aided by BSNL ramp-up. Inorganic contribution from ListEngage was expected to be around 0.1 per cent. MOFSL said near-term demand outlook, client technology budgets, AI data centres and deal wins would be key monitorables. It added that recent acquisitions of ListEngage and Coastal Cloud provided growth support in the near term, while commentary on synergy realisation would be tracked. Axis Securities expected TCS to report 2.6 per cent quarter on quarter topline growth, driven by BFSI, hi-tech and cross-currency tailwinds. It said Ebit margins were expected to decline by 28 basis points during the quarter due to wage hikes, higher investments and fewer working days. Axis Securities pegged net profit at Rs 13,163 crore, up 5.8 per cent year on year, with revenue rising 5.6 per cent year on year to Rs 67,526 crore. “All eyes are on the deal pipeline, vertical commentary and outlook on the BSNL advance purchase order,” Axis Securities said. Nirmal Bang Institutional Equities expected profit after tax to rise 4.1 per cent year on year to Rs 13,016 crore, on a 5.1 per cent year on year increase in sales to Rs 67,648 crore. It said Ebit margin may come in at 24.5 per cent, compared with 25.2 per cent in the September quarter and 24.8 per cent in the year-ago quarter. The brokerage had a target price of Rs 3,861 on the stock. On deal wins, Kotak Institutional Equities expected total contract value in the range of $10 billion to $11 billion for the quarter. It noted unconfirmed media reports suggesting TCS had won a mega deal in the telecom vertical. Nirmal Bang Institutional Equities said total contract value may come in above the guided range of $7 billion to $9 billion, despite some delays in decision making. Kotak Institutional Equities said investor focus would be on the company’s renewed aggression and investments to accelerate growth, including measures to improve revenue growth, wallet share shifts in developed markets, the deal pipeline, client budgets for calendar year 2026, GenAI revenues, enterprise adoption and the deflationary impact on spends. It also said investors would track the impact of global capability centre ramp-up on growth, progress on planned data centre investments, areas for inorganic investments and margin aspirations amid elevated competitive intensity. “We will look out for comments on the remaining lay-offs and impacts, if any. Apart from this, we will look out for further details in respect of the data centre business during the earnings concall,” Nirmal Bang said. If declared, the interim dividend will be paid to equity shareholders whose names appear in the register of members or in the records of the depositories as beneficial owners as of Saturday, January 17, 2026.