High Exam Priority
TCS Reports 14% Drop in Q3 Net Profit to ₹10,720 Crore Due to Labour Code Impact
26 September 2026
4 min read
Tata Consultancy Services (TCS) reported a 14% decline in its third-quarter net profit to ₹10,720 crore, weighed down by provisions for new labour codes and legal claims. Despite the profit drop, the company's revenue from operations grew by 4.86% year-on-year to ₹67,087 crore.
Key Highlights
- TCS posted a net profit of ₹10,720 crore for the quarter ended December 31, 2025, marking a 14% decrease year-on-year.
- The profit decline was primarily driven by a ₹2,128 crore impact from new labour codes, a ₹1,010 crore legal claim provision, and employee termination expenses.
- Revenue from operations increased by 4.86% year-on-year to reach ₹67,087 crore during the review period.
- The board announced a total dividend of ₹57 per share, including a special dividend of ₹46 per share.
Exam Quick Facts
Nodal Ministry / Dept
Ministry of Corporate Affairs / Ministry of Labour and Employment
Key Bodies
Tata Consultancy Services (TCS), National Company Law Tribunal (Contextual)
Constitutional & Legal Context
Labour codes consolidated 29 central labor laws into four codes, impacting corporate financial structuring and compliance provisions across Indian industries.
Static GK Connection
TCS is headquartered in Mumbai, Maharashtra, and operates as a subsidiary of the Tata Group, holding a major share in India's IT services export market.