New Delhi: Tata Consultancy Services (TCS) on Monday reported a stable but resilient performance for the December quarter, with consolidated net profit rising 8.5% year-on-year to ₹13,438 crore, supported by steady deal wins, strong cash flows and rising traction in artificial intelligence-led services.
Revenue for the quarter came in at ₹67,087 crore, up 2% sequentially, translating into 0.8% growth in constant currency terms. Operating margin stood at 25.2%, broadly flat quarter-on-quarter, reflecting cost discipline amid a cautious global demand environment.
A key highlight of the quarter was TCS’ total contract value (TCV) of $9.3 billion, underscoring sustained client spending on digital transformation and AI readiness. The company said its annualised AI services revenue touched $1.8 billion, growing 17.3% sequentially in constant currency, as enterprises accelerated adoption of AI across cloud, data, cybersecurity and core enterprise systems.
“Our ambition to become the world’s largest AI-led technology services company continues to guide our strategy,” said K Krithivasan, CEO and managing director, TCS, noting that investments across the AI stack—from infrastructure to intelligence—are translating into tangible client outcomes.
From a market perspective, growth remained mixed. North America, which accounts for nearly half of revenues, saw modest sequential growth, while continental Europe and India delivered stronger momentum. Sectorally, energy, utilities and life sciences showed relative resilience, even as discretionary spending remained under pressure in parts of BFSI and consumer segments.
TCS also announced a dividend of ₹57 per share, including a special dividend of ₹46, with a record date of January 17 and payment scheduled for February 3, reflecting its strong balance sheet and cash generation. Cash flow from operations stood at 130.4% of net income, highlighting robust cash conversion during the quarter.
During Q3, the company deepened partnerships with hyperscalers and global clients, announced the acquisition of Coastal Cloud to strengthen its Salesforce capabilities, and entered strategic alliances in AI data centres, healthcare, insurance and manufacturing. TCS also said it now has over 217,000 employees with advanced AI skills, reinforcing its push towards becoming an AI-first organisation.