TCS Q3 Profit Dips 14% Amid Exceptional Charges, ₹57 Dividend Boosts Investor Confidence

• TCS's Q3 FY26 net profit decreased by 14% year-on-year to ₹10,657 crore, missing market estimates.
• Revenue saw a 5% year-on-year increase, reaching ₹67,087 crore, indicating stable earnings pace.
• Profitability was impacted by exceptional charges: workforce restructuring, new India labor codes (₹2,128 crore), and a US legal dispute (₹1,010 crore).
• Excluding exceptional items, net profit would have been ₹13,438 crore (8.5% YoY growth), with strong operational performance and $9.3 billion in new contracts.
• A ₹57 per share dividend (including ₹46 special dividend) and growing AI services revenue ($1.8 billion annually) provided significant relief and confidence to investors.

Why It Matters: Despite a profit dip due to one-off charges, TCS's strong operational performance and substantial dividend reassured investors.