The dividend comes as TCS continues to return excess cash to shareholders, backed by robust operating cash flows and a resilient balance sheet. The country’s largest IT services exporter generated cash flows from operations equivalent to 130.4% of its net income during the December quarter.
TCS reported revenue of Rs 67,087 crore for the December quarter, up 2% quarter-on-quarter, with constant currency growth of 0.8%. On a year-on-year basis, revenue rose 5% compared with Rs 63,973 crore in the same quarter last year.
Net profit attributable to shareholders stood at Rs 10,657 crore, marking a 14% decline from Rs 12,380 crore a year earlier. However, net income for the quarter was reported at Rs 13,438 crore, reflecting an 8.5% year-on-year increase, with net margin improving by 40 basis points sequentially to 20%.
Operating margin came in at 25.2%, remaining stable compared with the previous quarter, indicating disciplined cost control amid uneven demand conditions across global markets. The company’s total contract value (TCV) for the quarter stood at $9.3 billion.
A key growth driver continued to be artificial intelligence-led services. TCS reported annualised AI services revenue of $1.8 billion, up 17.3% quarter-on-quarter in constant currency terms. Management reiterated its ambition to become the world’s largest AI-led technology services company, guided by a five-pillar strategy spanning infrastructure, platforms, applications, data, and intelligence.
Chief Executive Officer K Krithivasan said the company remained focused on scaling its artificial intelligence-led services portfolio, which is increasingly becoming a key driver of long-term growth and client engagement.TCS operates in an environment where clients are increasingly prioritising cost optimisation and targeted digital investments rather than large-scale transformation projects. While this has tempered headline growth, the company’s scale, diversified client base and strong execution continue to support margins and cash generation.