Slides
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TCS Financial Results Quarter III Ended FY 2025-26 Jan 12, 2026
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Disclaimer 2 Certain statements in this release concerning our future prospects are forward-looking statements. Forward-looking statements by their nature involve a number of risks and uncertainties that could cause actual results to differ materially from market expectations. These risks and uncertainties include, but are not limited to, our ability to manage growth, intense competition among global IT services companies, various factors which may affect our profitability, such as wage increases or an appreciating Rupee, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, liability for damages on our service contracts, client concentration, our ability to manage our international operations, restrictions on cross-border movement of skilled personnel, reduced demand for technology in our key focus areas, our ability to capitalize on the emerging technology landscape, the success of the companies in which TCS has made strategic investments, our ability to successfully complete and integrate potential acquisitions, legal restrictions on raising capital or acquiring companies outside India, withdrawal of governmental fiscal incentives, geo-political instability, regulatory changes impacting the business model, supplier concentration and resilience, unauthorized use of our intellectual property, disruptions in telecommunication networks, cyber attacks, security or data breaches, social media adverse impact, pandemics, natural disasters, our ability to ensure business continuity in unforeseen circumstances, and general economic conditions affecting our industry. TCS may, from time to time, make additional written and oral forward-looking statements, including our reports to shareholders. These forward-looking statements represent only the Company’s current intentions, beliefs or expectations, and any forward-looking statement speaks only as of the date on which it was made. The Company assumes no obligation to revise or update any forward-looking statements.
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Q3 FY26 Performance Highlights 3 Revenue: - INR Revenue of ₹ 670,870 Mn, up 2.0% QoQ | up 4.9% YoY - USD Revenue of $ 7,509 Mn, up 0.6% QoQ | down 0.4% YoY - Constant currency revenue up 0.8% QoQ | down 2.6% YoY Profit: - Operating Margin at 25.2%* - Net Margin at 20.0%* - Cash flow from operations at 130.4% of net profit Demand: - Clients $100M+ up by 2 ; $20M+ up by 8 & $1M+ up by 23 QoQ - Order book TCV at $9.3 Bn; North America TCV at $4.9 Bn; BFSI TCV at $3.8 Bn, Consumer Business TCV at $1.4 Bn People: - Closing headcount: 582,163 - Voluntary LTM attrition at 13.5% in IT Services *Excludes exceptional items.
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Growth Summary (INR) 4 639,730 644,790 634,370 657,990 670,870 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Revenue ` Million 123,800 122,240 127,600 129,040 134,380 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Net Income ` Million 156,570 156,010 155,140 165,650 168,890 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Operating Income ` Million -0.4% 0.8% -1.6% 3.7% 2.0% 0.0% -0.8% -3.3% 0.8% 0.8% Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q-o-Q Growth Q-o-Q Growth CC 19.4% 19.0% 20.1% 19.6% 20.0% Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Net margin (%) 24.5% 24.2% 24.5% 25.2% 25.2% Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Operating margin (%) *Q2 FY26 & Q3 FY26 excludes exceptional items
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19.4% 19.0% 20.1% 19.6% 20.0% Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Net margin (%) Growth Summary (USD) 5 7,539 7,465 7,421 7,466 7,509 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Revenue $ Million -1.7% -1.0% -0.6% 0.6% 0.6% 0.0% -0.8% -3.3% 0.8% 0.8% Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q-o-Q Growth Q-o-Q Growth CC 1,844 1,807 1,815 1,879 1,889 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Operating Income $ Million 24.5% 24.2% 24.5% 25.2% 25.2% Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Operating margin (%) 1,458 1,418 1,493 1,464 1,503 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Net Income $ Million *Q2 FY26 & Q3 FY26 excludes exceptional items
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Operational Parameters
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Growth by Market 7 Geography (%) Q3 FY25 Q2 FY26 Q3 FY26 Q-o-Q CC Growth Y-o-Y CC Growth Q-o-Q INR Growth Y-o-Y INR Growth Americas North America 47.7 48.8 48.5 0.1 1.3 1.4 6.7 Latin America 1.9 1.9 2.0 4.6 1.4 8.4 14.5 Europe UK 16.6 17.5 16.9 - 1.9 - 3.2 - 1.1 6.8 Continental Europe 13.9 15.3 15.6 2.1 1.4 3.5 17.0 Asia Pacific 7.8 8.3 8.3 1.1 3.5 2.0 11.1 India 9.8 5.8 6.1 8.0 - 34.3 8.1 - 34.2 MEA 2.3 2.4 2.6 3.2 8.3 5.4 16.1 Total 100.0 100.0 100.0 0.8 -2.6 2.0 4.9
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Growth by Domain 8 Vertical (%) Q3 FY25 Q2 FY26 Q3 FY26 Q-o-Q CC Growth Y-o-Y CC Growth Q-o-Q INR Growth Y-o-Y INR Growth BFSI 30.5 32.2 31.9 - 0.4 1.6 1.0 9.6 Consumer Business 15.3 15.3 15.4 1.3 - 2.7 2.6 5.8 Life Sciences & Healthcare 10.1 10.5 10.5 0.9 2.2 2.2 9.7 Manufacturing 8.4 8.8 8.8 0.2 1.7 1.4 9.7 Technology & Services 8.0 8.5 8.4 - 1.3 1.7 0.1 9.4 Communication & Media 5.8 5.9 5.9 0.6 - 1.6 2.0 6.6 Energy, Resources and Utilities 5.6 5.9 6.0 1.0 2.2 2.5 11.2 Regional Markets & Others 16.3 12.9 13.1 4.6 - 19.4 4.8 - 15.3 Total 100.0 100.0 100.0 0.8 - 2.6 2.0 4.9
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*Last Twelve Months' services revenues Client Parameters 9 US$ 1m+ Clients 1309 1360 1383 US$ 5m+ Clients 722 707 721 US$ 10m+ Clients 497 498 497 US$ 20m+ Clients 294 302 310 US$ 50m+ Clients 134 136 136 US$ 100m+ Clients 64 60 62 Clients Contribution Q3 FY25 Q2 FY26 Q3 FY26
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Human Resources
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Total Employee Base 11 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 612,724 607,354 607,979 613,069 593,314 582,163 Voluntary Attrition*: • 13.5% (LTM), IT Services Diversity: • 35.1 % Women employees • 149 Nationalities *Excluding Subsidiaries Talent Development: • 51.2Mn Learning Hrs (YTD) • 3.8Mn competencies acquired (YTD) • 217K associates with AI Skills (YTD)
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Annexure
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IFRS Income Statement 13 *Q2 FY26 & Q3 FY26 excludes exceptional items. Revenue 639,730 657,990 670,870 100.0 100.0 100.0 Cost of revenue 391,390 397,580 397,040 61.2 60.4 59.2 Gross margin 248,340 260,410 273,830 38.8 39.6 40.8 SG & A expenses 91,770 94,760 104,940 14.3 14.4 15.6 Operating income 156,570 165,650 168,890 24.5 25.2 25.2 Other income (expense), net 10,090 6,380 9,220 1.6 0.9 1.3 Income before income taxes 166,660 172,030 178,110 26.1 26.1 26.5 Income taxes 42,220 42,430 43,100 6.6 6.4 6.4 Income after income taxes 124,440 129,600 135,010 19.5 19.7 20.1 Non-controlling interests 640 560 630 0.1 0.1 0.1 Net income 123,800 129,040 134,380 19.4 19.6 20.0 Earnings per share in ₹ 34.21 35.67 37.14 Q2 FY26Q3 FY26 Consolidated IFRS ₹ Million % of Revenue Q3 FY25 Q3 FY25Q2 FY26 Q3 FY26
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Employee cost 283,860 308,920 301,300 44.4 46.9 44.9 Fees to external consultants 28,120 33,090 35,600 4.4 5.0 5.3 Equipment and software 35,190 9,670 12,620 5.5 1.5 1.9 Facility expenses 5,460 5,540 6,040 0.9 0.8 0.9 Depreciation 10,780 10,930 10,810 1.7 1.7 1.6 Travel 5,470 5,850 5,390 0.9 0.9 0.8 Communication 4,050 4,610 4,900 0.6 0.7 0.7 Other expenses 18,460 18,970 20,380 2.8 2.9 3.1 Cost of Revenue 391,390 397,580 397,040 61.2 60.4 59.2 Employee cost 75,700 77,140 83,990 11.8 11.7 12.5 Fees to external consultants 1,570 1,650 1,890 0.2 0.3 0.3 Facility expenses 3,270 3,330 3,370 0.5 0.5 0.5 Depreciation 2,980 3,200 2,990 0.5 0.5 0.4 Travel 1,820 2,010 2,770 0.3 0.3 0.4 Communication 1,910 1,870 2,270 0.3 0.3 0.3 Provision for Doubtful Debts 410 380 370 0.1 0.1 0.1 Other expenses 4,110 5,180 7,290 0.6 0.7 1.1 S G & A expenses 91,770 94,760 104,940 14.3 14.4 15.6 Q2 FY26 Q2 FY26Q3 FY25 Q2 FY26 Q3 FY25 COR SG&A % of Revenue₹ Million ₹ Million % of Revenue Q3 FY25 Q3 FY25Q2 FY26 Q3 FY26 Q3 FY26 Q3 FY26 Q3 FY26 COR – SG&A Details 14 *Q2 FY26 & Q3 FY26 excludes exceptional items.
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IFRS in ₹ Mn Q3 FY25 Q2 FY26 Q3 FY26 Net Cash from Operations 130,320 132,930 139,010 Capital Expenditure 7,260 12,010 9,180 Acquisition of Subsidiary - - 5,600 Free Cash Flow 123,060 120,920 124,230 Dividends Paid 36,220 40,210 39,870 Operating Cash Flow to Sales (%) 20.4 20.2 20.7 Operating Cash Flow to Net Profit (%) 105.3 110.1 130.4 Total Cash and Investments 623,490 559,500 640,970 Cash Flow Summary 15
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IFRS Statement of Financial Position 16 Detailed financials are uploaded. 31-Mar-25 31-Dec-25 Assets Property and equipment 129,320 138,110 Right-of-use Assets 92,750 105,480 Intangible assets and Goodwill 49,640 51,030 Accounts Receivable 502,330 561,470 Unbilled Revenues 154,700 163,290 Invested Funds 472,220 640,970 Other current assets 124,860 116,780 Other non current assets 91,730 86,740 Total assets 1,617,550 1,863,870 Liabilities and Shareholders' Equity Shareholders' Funds 968,820 1,156,280 Current liabilities 530,010 572,270 Non-current liabilities 108,570 124,590 Non-controlling interests 10,150 10,730 Total Liabilities 1,617,550 1,863,870 Consolidated IFRS ₹ Million
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Revenue 7,539 7,466 7,509 100.0 100.0 100.0 Cost of revenue 4,613 4,512 4,444 61.2 60.4 59.2 Gross margin 2,926 2,954 3,065 38.8 39.6 40.8 SG & A expenses 1,082 1,075 1,176 14.3 14.4 15.6 Operating income 1,844 1,879 1,889 24.5 25.2 25.2 Other income (expense), net 119 73 103 1.6 0.9 1.3 Income before income taxes 1,963 1,952 1,992 26.1 26.1 26.5 Income taxes 497 482 482 6.6 6.4 6.4 Income after income taxes 1,466 1,470 1,510 19.5 19.7 20.1 Non-controlling interests 8 6 7 0.1 0.1 0.1 Net income 1,458 1,464 1,503 19.4 19.6 20.0 % of Revenue Q2 FY26Q3 FY25 Q3 FY26 Consolidated IFRS $ Million Q2 FY26 Q3 FY26Q3 FY25 IFRS Income Statement – In USD 17 *Q2 FY26 & Q3 FY26 excludes exceptional items. (refer note 19, 22 & 23 to Financial Statements)
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COR – SG&A Details – In USD 18 Employee cost 3,345 3,505 3,373 44.4 46.9 44.9 Fees to external consultants 331 376 398 4.4 5.0 5.3 Equipment and software 415 110 141 5.5 1.5 1.9 Facility expenses 64 63 68 0.9 0.8 0.9 Depreciation 127 124 121 1.7 1.7 1.6 Travel 65 66 60 0.9 0.9 0.8 Communication 48 52 55 0.6 0.7 0.7 Other expenses 218 216 228 2.8 2.9 3.1 Cost of Revenue 4,613 4,512 4,444 61.2 60.4 59.2 Employee cost 892 875 940 11.8 11.7 12.5 Fees to external consultants 19 19 21 0.2 0.3 0.3 Facility expenses 39 38 38 0.5 0.5 0.5 Depreciation 35 36 34 0.5 0.5 0.4 Travel 21 23 31 0.3 0.3 0.4 Communication 22 21 25 0.3 0.3 0.3 Provision for Doubtful Debts 5 4 4 0.1 0.1 0.1 Other expenses 49 59 83 0.6 0.7 1.1 SG&A expenses 1,082 1,075 1,176 14.3 14.4 15.6 Q2 FY26 Q3 FY26 % of Revenue % of Revenue Q3 FY25 Q3 FY25 COR $ Million Q3 FY25 Q2 FY26 Q3 FY26 Q3 FY26Q2 FY26 SG&A $ Million Q2 FY26Q3 FY25 Q3 FY26 *Q2 FY26 & Q3 FY26 excludes exceptional items. (refer note 19, 22 & 23 to Financial Statements)
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IFRS Statement of Financial Position in USD 19 Detailed financials are uploaded. 31-Mar-25 31-Dec-25 Assets Property and equipment 1,514 1,536 Right-of-use Assets 1,086 1,173 Intangible assets and Goodwill 580 568 Accounts Receivable 5,880 6,245 Unbilled Revenues 1,811 1,816 Invested Funds 5,526 7,129 Other current assets 1,458 1,297 Other non current assets 1,076 966 Total assets 18,931 20,730 Liabilities and Shareholders' Equity Shareholders' Funds 11,337 12,859 Current liabilities 6,202 6,364 Non-current liabilities 1,270 1,385 Non-controlling interests 122 122 Total Liabilities 18,931 20,730 $ Million Consolidated IFRS
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Ind AS Income Statement - Consolidated 20 Revenue 63,973 65,799 67,087 100.0 100.0 100.0 Expenditure a) Employee Costs 35,956 38,606 38,530 56.2 58.7 57.4 b) Cost of equipment and software licences 3,519 967 1,262 5.5 1.5 1.9 c) Other Operating expenses 7,464 8,248 9,026 11.6 12.5 13.4 d) Depreciation 1,377 1,413 1,380 2.2 2.1 2.1 Total Expenditure 48,316 49,234 50,198 75.5 74.8 74.8 Profit Before Taxes & Other Income 15,657 16,565 16,889 24.5 25.2 25.2 Other income (expense), net 1,009 638 922 1.6 0.9 1.3 Profit Before Taxes 16,666 17,203 17,811 26.1 26.1 26.5 Provision For Taxes 4,222 4,243 4,310 6.6 6.4 6.4 Profit After Taxes & Before Non-controlling interests 12,444 12,960 13,501 19.5 19.7 20.1 Non-controlling interests 64 56 63 0.1 0.1 0.1 Net Profit 12,380 12,904 13,438 19.4 19.6 20.0 Earnings per share in ₹ 34.21 35.67 37.14 Consolidated Ind AS ₹ Crore % of Revenue Q3 FY26 Q3 FY25 Q3 FY25 Q2 FY26 Q2 FY26 Q3 FY26 *Q2 FY26 & Q3 FY26 excludes exceptional items. (refer note 19, 22 & 23 to Financial Statements)
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Ind AS Balance Sheet - Consolidated 21 Detailed financials are uploaded. 31-Mar-25 31-Dec-25 Assets Property and equipment 12,524 13,449 Right-of-use Assets 9,275 10,548 Intangible assets and Goodwill 2,800 2,939 Accounts Receivable 50,233 56,147 Unbilled Revenues 15,470 16,329 Invested Funds 47,222 64,097 Other current assets 12,486 11,678 Other non current assets 9,619 9,081 Total Assets 159,629 184,268 Liabilities and Shareholders' Equity Shareholders' Funds 94,756 113,509 Current liabilities 53,001 57,227 Non-current liabilities 10,857 12,459 Non-controlling interests 1,015 1,073 Total Liabilities 159,629 184,268 Consolidated Ind AS ₹ Crore
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Q3 FY25 Q2 FY26 Q3 FY26 Q3 FY25 Q2 FY26 Q3 FY26 USD 84.85 88.13 89.34 49.43% 49.79% 49.34% GBP 107.72 118.11 118.87 14.43% 15.16% 14.82% EUR 89.62 102.70 104.00 10.64% 11.73% 11.65% Others 25.50% 23.32% 24.19% Total 100.00% 100.00% 100.00% Currency Average rates % of Revenue Currency mix and average realized rates in INR 22
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