TCS Q2 Results FY 2025-26: PAT down at 5% at Rs 12,075 crore, misses estimates

TCS Q2 Results: Tata Consultancy Services (TCS), India’s largest IT services company, reported a consolidated net profit of Rs 12,075 crore for the July–September quarter (Q2 FY26), marking a 5.4 per cent decline from Rs 12,760 crore in the previous quarter. The profit came below Street estimates of around Rs 12,744 crore.

On a year-on-year basis, the company’s net profit rose 1.4 per cent from Rs 11,909 crore in the same period last year. Revenue from operations came in at Rs 65,799 crore, up 2.4 per cent from Rs 64,259 crore a year ago, and 3.7 per cent higher sequentially compared to Rs 63,437 crore in Q1 FY26.

Deal wins and business highlights

Add Zee Business as a Preferred Source

TCS reported total contract value (TCV) of $10 billion in Q2, up from $9.4 billion in the previous quarter. In constant currency terms, revenue grew 0.8 per cent sequentially after two quarters of decline. The company had posted a 3.3 per cent drop in constant currency revenue in the June quarter.

Among business segments, Life Sciences and Healthcare grew 3.4 per cent quarter-on-quarter in constant currency, followed by Manufacturing (up 1.6 per cent) and Communication, Media & Information Services (up 0.8 per cent).

Operating margin for the quarter expanded by 70 basis points to 25.2 per cent, while net margin stood at 19.6 per cent. The company reported cash flow from operations at 110.1 per cent of net income.

TCS Dividend 2025 record date and payment date

The board of TCS declared a second interim dividend of Rs 11 per equity share. The record date has been fixed as October 15, 2025, and the payment will be made on November 4, 2025.

CEO commentary

K Krithivasan, Chief Executive Officer and Managing Director of TCS, said, “I am pleased with our strong Q2 performance. We are on a journey to become the world’s largest AI-led technology services company. Our transformation across talent, infrastructure, ecosystem partnerships, and customer value reflects our commitment to this vision.”

He added that the company’s investments, including in AI infrastructure, underline its focus on building a world-class, future-ready technology platform.

TCS announces investment in AI datacenter

Tata Consultancy Services (TCS) on Thursday announced a strategic investment to build a world-class artificial intelligence (AI) infrastructure in India, including a 1 gigawatt (GW) capacity AI datacenter.

In addition, the company’s board has approved the acquisition of ListEngage, a firm with deep expertise in Salesforce solutions.

TCS said it continues to invest in nurturing an AI-first culture and talent ecosystem, highlighting its recent initiative — the world’s largest “Ideate and Build with AI” Hackathon, which saw participation from 275,000 TCS employees.

North America business share dips marginally

Tata Consultancy Services (TCS) reported a slight decline in revenue contribution from its key North America market in the July–September quarter (Q2 FY26). The region accounted for 47.6 per cent of the company’s total revenue, reflecting a 0.1 per cent drop year-on-year in constant currency (CC) terms.

Despite the marginal decline, North America continues to be the largest revenue generator for the IT major, contributing nearly half of its business.