Tata Consultancy Services (TCS), India's largest IT services firm, announced its Q2 results for the financial year 2025-26 on Thursday, revealing a 1.4% year-on-year (YoY) rise in consolidated net profit, reaching ₹12,075 crore. This is compared to ₹11,909 crore in the same quarter last year. The results, however, fell short of analysts' expectations, which had projected ₹12,573 crore.
The company's consolidated revenue from operations for the quarter increased by 2.4% YoY to ₹65,799 crore, compared to ₹64,259 crore in the corresponding quarter of the previous financial year. In constant currency terms, revenue saw a sequential growth of 0.8%.
TCS has declared an interim dividend of ₹11 per equity share. The record date for determining shareholders' eligibility for the dividend is October 15, 2025, and the payment is scheduled for November 4, 2025.
In terms of vertical performance, BFSI (Banking, Financial Services and Insurance) led the growth with 1.1% QoQ in constant currency, followed by TSS (Tata Strategic Services) at 1.8% QoQ in constant currency. Life Sciences and Healthcare also contributed with 3.4% QoQ growth in constant currency, while Manufacturing and CMI (Communications, Media, and Information services) grew by 1.6% and 0.8% QoQ in constant currency, respectively.
The company has announced several key initiatives, including the creation of a new business entity focused on building world-class AI infrastructure and the development of a 1 GW capacity AI data center in India. TCS is also acquiring ListEngage, a company with deep capabilities in Salesforce. The IT giant is also investing in nurturing an AI-first culture and talent, highlighted by the world's largest 'Ideate and Build with AI' Hackathon, which saw participation from 275,000 TCS employees.
EBIT (Earnings Before Interest and Taxes) margin for the quarter expanded by 70 basis points to 25.2% from 24.5% in the previous quarter.
Shares of Tata Consultancy Services closed at ₹3,060.20 on the NSE, up 1.09% ahead of the results announcement. However, the stock is down 25.59% year-to-date.
TCS CEO K Krithivasan commented on the results, stating that the company's journey is anchored in bold transformation across talent, infrastructure, ecosystem partnerships, and customer value. He emphasized that the company's investments, including building a world-class AI infrastructure business, demonstrate their commitment to this transformation.
While the net profit witnessed a marginal increase, it also reflects a 5.36% decline compared to the previous quarter (Q1 FY26), where the net profit stood at ₹12,760 crore.
