March Quarter Financial Performance
- The financial results from Tata Consultancy Services (TCS) for the first three months of the 2025-26 fiscal year showed that the company earned a total net profit of ₹13,718 crores. The net profit increased by 12.22% when compared to the previous year's net profit of ₹12,224 crores which the company achieved during the same quarter.
- The company achieved higher profits than its prior quarter performance. The December quarter recorded a profit of ₹10,657 crores. The operating margin for the March quarter reached 25.3%, which showed an increase from the 24.2% operating margin of the same period last year.
- TCS achieved a net profit of ₹49,210 crores which the company reported for the entire 2025-26 fiscal year. The result shows a 1.35% growth compared to the previous year's net profit of ₹48,553 crores which TCS reported for 2024-25.
Revenue Growth Details
- TCS achieved substantial revenue growth during the March quarter.
- The company generated quarterly revenue of ₹70,698 crores which showed 9.64% annual growth from the previous revenue of ₹64,479 crores.
- The recent increase marks the strongest revenue rise of 30 quarters which has occurred during the past three decades.
For the full financial year:
- Total revenue: ₹2.67 lakh crores
- Previous year: ₹2.55 lakh crores
The following results show quarterly performance:
- Profit increased by 28.7%
- Revenue increased by 5.4%
Deal Wins and Market Segments
TCS obtained contracts worth $12 billion during the March quarter which translates to approximately ₹1.16 lakh crore. The package includes three deals which are categorized as major contracts.
Key highlights:
- $5.4 billion from North America
- $2.8 billion from BFSI (Banking, Financial Services, and Insurance)
TCS also established a multi-year AI-powered transformation contract with Marks & Spencer which operates as a UK-based retail business.
Workforce and Hiring Trends
TCS employed 2,356 new workers during the March quarter, which brought their total employment number to 584,519 staff members.
The employee count increased after the company experienced two consecutive quarters of staff reductions. However, for the full financial year 2025–26:
- The workforce experienced a reduction of 23460 workers which resulted in a total employee count of 607979 workers.
- The decline includes the exit of about 12000 employees due to AI-related organizational changes.
AI Skills Development Program
The company is focusing on building AI capabilities among employees. The Chief Human Resources Officer Sudeep Kunneth identified employee preparation for AI technology as the main organizational goal for 2025 to 2026 and 2026 to 2027.
- The organization currently employs 270000 workers who possess expertise in artificial intelligence and machine learning.
- The company experienced a 13.7 percent attrition rate at the end of March. The company expects this rate to decline.
TCS will begin implementing salary increases which will affect all employees in the organization starting this month. The salary increases will affect all employees throughout different job levels:
- The previous financial year showed salary increases that ranged between 4.5 percent and 7 percent.
- The exact percentage for the current cycle remains unannounced by the organization.
Dividend Announcement and Share Performance
The board proposed a final dividend of ₹31 per share for 2025–26. The shareholders will decide on this proposal during the upcoming Annual General Meeting.
- The total dividend distribution for the year reached ₹110 per share.
TCS shares experienced upward movement despite the overall market showing weakness. The stock closed at ₹2,587.75 on the BSE, with a gain of 1.09%.
