Despite the decline in profits, Tata’s strong company will give huge dividend – hold the stock before the record date? – market

TCS has declared an interim dividend of Rs 57 per share for FY26, which includes a third interim dividend of Rs 11 and a special dividend of Rs 46. The dividend will be paid on February 3, 2026, while the record date is set for January 17, 2026.

What does the management have to say?

TCS CEO and MD K Krithivasan said that the growth momentum seen in Q2FY26 continued in Q3 as well. He said that the company’s focus is on becoming the world’s largest AI-technology services company. TCS’s AI services currently generate $1.8 billion in annual revenue, reflecting the value it provides to clients from infrastructure to intelligence. COO Aarti Subramanian also said the company saw an uptick in AI-based projects in the quarter.

The board of TCS has recommended an interim dividend of Rs 11 and a special dividend of Rs 46 per share of face value of Re 1 for shareholders.

TCS said in the filing that the directors in the board meeting have declared a third interim dividend of Rs 11 and a special dividend of Rs 46 on each equity share of Re 1 of the company. TCS said that January 17 will be considered as the dividend record date and the company has fixed February 3 as the payment date of this dividend.

TCS Stock: Brokerage’s View

After the quarterly results, brokerages have given different opinions on the stock. When should you buy TCS stock?

Nuvama increased the target

Post the quarterly results, Nuvama has maintained BUY rating on TCS shares and raised the target on the stock to ₹3,750 from ₹3,650 earlier. The brokerage said PAT of ₹10,657 crore was lower than expected due to exceptional items. The brokerage also cited a onetime charge of Rs 21 crore due to changes in labor laws, which had a limited impact of 10-15 bps on margins.

Deal wins in Q3 stood at USD 9.3 billion, including a large North America deal, the brokerage reported. GenAI revenue grew to USD 1.8 billion year-on-year. It said demand for short-cycle projects remains healthy, while valuations look attractive. It has revised EPS by -4.1 per cent/0.3 per cent respectively for FY26E/27E.

Nuwama said headcount declined by 11,000 in the quarter, while the attrition rate remained steady at 13.5 percent.

Goldman Sachs’ perspective

Brokerage Goldman Sachs raised its target on the stock to Rs 3,590. The brokerage said the BFSI vertical remains strong and demand for AI-operated small projects is showing improvement.

Goldman Sachs has released its outlook on the Indian IT sector after TCS’s Q3 results, saying that the demand environment looks to be improving from stable. However, companies still have limited information about the full extent of the recovery in calendar year 2026 (CY26). The banking, financial services and insurance (BFSI) vertical has remained strong for a few quarters.

Goldman Sachs notes that TCS has shown early signs of recovery in some other verticals.

What did Emkay Global say?

Emkay Global maintains BUY rating on Tata Consultancy Services (TCS) with a target price of Rs 3,500. TCS’ Q3FY26 operating performance was in line with expectations, the brokerage said. EBIT margin (EBITM) remained stable at 25.2% on a sequential basis due to improved productivity and operational efficiency, even as the company managed salary increases and increased investments.

The improved demand environment seen in Q2FY26 continued in Q3, supported by a steady increase in short-cycle AI projects based on return-on-investment (RoI) across industries. However, MK said that some special things had an impact on the company’s profit in this quarter. As a result, it has cut TCS’s earnings estimates for FY26–FY28 by 0.2% from 7.3%, taking into account the impact of Q3 performance.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.