Tata Consultancy Services (TCS), India's largest IT services firm, is set to officially commence the earnings season for the October-December 2025 quarter. The company's board of directors will meet today, 12 January 2026, to approve and announce the financial results for the third quarter of the fiscal year 2025-26 (Q3 FY26). This announcement is highly anticipated by investors and industry watchers as a bellwether for the broader Indian IT sector's performance.
TCS Q3 FY26 Results Preview: Revenue and Profit Expectations
Analysts project a steady, albeit moderate, performance from TCS for the quarter ended December 2025. According to estimates from Axis Securities, the company is expected to post a sequential revenue growth of 2.6%, taking its total income to approximately ₹67,526 crore. This growth is anticipated to be propelled by segments like Banking, Financial Services and Insurance (BFSI), Hi-tech, and favourable cross-currency movements.
On the profitability front, the net profit is forecasted to see a healthier jump. Estimates suggest a 8.5% quarter-on-quarter (QoQ) increase, rising from ₹12,131 crore in Q2 to around ₹13,163 crore in Q3 FY26. However, this growth will be tested against several headwinds, including the impact of wage hikes, continued strategic investments, and a lower number of working days during the quarter, which could pressure EBIT margins. A potential mitigating factor is the depreciation of the Indian rupee.
Key Monitoring Points and Sector Context
The market's focus will extend beyond the headline numbers. Analysts have pinpointed several critical areas to watch in the management's commentary. These include:
- Deal Pipeline (TCV): The total contract value of new deals won and the visibility of the future pipeline.
- Business Vertical Outlook: Guidance on growth trends across key industry segments, especially BFSI.
- BSNL Deal: Updates on the much-discussed advance purchase order deal with state-owned telecom operator BSNL.
The results come against a backdrop of cautious expectations for the Indian IT sector. The third quarter is typically seasonally soft, and this year, the sector continues to navigate a lack of significant demand improvement, persistent macroeconomic uncertainties such as Trump tariffs and global trade tensions, and a steady but not spectacular deal flow.
Dividend Declaration and Market Reaction
In a move keenly watched by shareholders, the TCS board is also scheduled to consider the declaration of a third interim dividend for the current financial year. The company has already fixed Saturday, 17 January 2026, as the record date to determine which equity shareholders will be eligible to receive this dividend payout.
Ahead of the results announcement, TCS shares reflected the market's wait-and-see approach. On Monday, the stock traded marginally lower, indicating investor caution as they await the final numbers and management's guidance for the future.
The outcome of today's board meeting will set the tone for the entire IT earnings season, providing crucial insights into the sector's resilience and growth trajectory in a complex global economic environment.
