TCS Q3 Results: Net profit, margins meet expectations; Total deal wins at $10.2 billion

Tata Group IT services provider Tata Consultancy Services Ltd.(TCS) reported its December quarter results that were in-line with street estimates on most fronts.

TCS reported revenue of ₹63,973 crore, which is a decline of 0.4% in comparison to the September quarter. A CNBC-TV18 poll had projected the revenue in rupee terms to grow by 0.2% to ₹64,333 crore.

In US Dollar terms, TCS reported revenue of $7,539 million, which is marginally below the CNBC-TV18 poll of $7,626 million.

Net profit for the quarter increased by 4% from the June quarter to ₹12,380 crore. A CNBC-TV18 poll had pegged the figure at ₹12,362 crore.

For the December quarter, TCS reported EBIT of ₹15,477 crore, which is marginally below expectations of ₹15,759 crore.

EBIT margin for the quarter stood at 24.5%, compared to 24.1% in the last quarter. A CNBC-TV18 poll had pegged the figure at 24.5%.

TCS won deals worth $10.2 billion during the quarter, which was higher than the $8.6 billion in the September quarter and also higher than the $8.1 billion it won during the same quarter last year.

This is also the first instance in three quarters that the company has crossed $10 billion in total deal wins.

TCS announced a dividend of ₹76 per share for its shareholders. Out of this, ₹10 is the third interim dividend for financial year 2025, and ₹66 per share is a special dividend.

Shares of TCS ended 1.5% lower on Thursday at ₹4,044. The stock has been an underperformer compared to its peer Infosys over the last 12 months. In fact, TCS is now trading at a discount to Infosys in terms of price-to-earnings multiples.