TCS Q3FY26: Profit Plunges 11.8% Due to Exceptional Costs, Revenue Stable

• TCS Q3FY26 profit dropped by 11.8% due to one-time exceptional costs totaling 3,391 crore rupees.
• Key exceptional costs include 2,128 crore rupees for the new labor code, 1,010 crore rupees for legal claims, and 253 crore rupees for restructuring.
• Revenue saw a slight increase to $7,509 million with a CC Growth of 0.8%, and EBIT Margin remained stable at 25.2%.
• Strong performance in India (8% growth) and Latin America (4.6%), while UK (-1.9%) and North America (0.1%) showed weakness.
• BFSI and Tech verticals remain under pressure, but Consumer and Regional Markets showed recovery.

Why It Matters: TCS's profit dip is due to one-time costs, not business weakness, making it potentially attractive for long-term investors.