Tata Consultancy Services (TCS), a leading Indian IT services company, has announced its Q2 results for FY26, revealing a workforce of 6.13 lakh employees and an attrition rate of 13.8%. The company's consolidated net profit saw a 1.3% year-on-year (YoY) increase, reaching ₹12,075 crore, compared to ₹11,909 crore in the same quarter last year. However, this figure fell short of analyst estimates, which had projected ₹12,573 crore.
Revenue from operations experienced a 2.4% YoY rise, reaching ₹65,799 crore, up from ₹64,259 crore in the corresponding quarter of the previous year. In constant currency terms, the revenue growth stood at 0.8%. A decline of 5.36% was recorded in the consolidated net profit to ₹12,075 crore in the latest September quarter compared to ₹12,760 in Q1 FY26.
The company's operating margin stood at 25.2% in Q2 FY26, reflecting an expansion of 70 basis points (bps) quarter-on-quarter (QoQ). In the same period last year, the operating margin was 24.1%.
TCS has declared an interim dividend of ₹11 per equity share. The record date for determining eligibility for the dividend is October 15, 2025, and the payment date is set for November 4, 2025.
In Q1 FY26, TCS also reported a 13.8% attrition rate. The company added 6,071 employees, bringing the total workforce to 613,069. During that quarter, TCS's profit soared to ₹12,760 crore, marking a 6% YoY increase. The total revenue witnessed a 1.31% rise to ₹63,437 crore.
The company's Chief Executive Officer (CEO), K Krithivasan, emphasized the company's commitment to transformation across various domains, including talent, infrastructure, and ecosystem partnerships. He highlighted investments in building a world-class AI infrastructure business. TCS is building a new business entity to focus on world-class AI infrastructure and a 1 GW capacity AI data center in India. TCS is also acquiring ListEngage, which has deep capabilities in Salesforce.
TCS plans to separate approximately 12,000 employees, which is about 2% of its workforce.
The total contract value (TCV) for Q2 FY26 stood at US$10 billion, exceeding the US$9.4 billion recorded in the previous quarter.
Several analysts have provided estimates for TCS's performance. Motilal Oswal Financial Services anticipates flat revenue growth QoQ, with a potential 20 bps decline in EBIT margin due to wage hikes and lower utilization. Nuvama had projected a net profit of ₹13,058 crore, up 9.6% YoY and 2.3% QoQ. Nomura estimated a net profit of ₹12,441 crore, up 4.5% YoY but down 2.5% QoQ. Motilal Oswal had estimated ₹12,600 crore, up 5% YoY but down 2.1% QoQ.
