TCS Q2 Earnings Slightly Miss Analyst Estimates
Tata Consultancy Services (TCS), India’s leading IT services company, reported a consolidated net profit of ₹12,075 crore for the quarter ended September 30, 2025, a 1.4 percent year-on-year rise. This was slightly below Street estimates, with CNBC-TV18 predicting ₹12,528.3 crore in profit and revenue of ₹65,114 crore. The company also declared a second interim dividend of ₹11 per share, with October 15 as the record date and November 4 as the payment date.
Net profit rose 1.4% YoY to ₹12,075 crore
Revenue slightly above ₹65,799 crore
Interim dividend declared at ₹11 per share
Revenue Growth Strengthens Despite Global Challenges
TCS posted revenue of ₹65,799 crore for Q2 FY26, marking a 3.7 percent sequential increase and 0.8 percent growth in constant currency terms. Operating margin expanded 70 basis points to 25.2 percent, while net margin improved to 19.6 percent. Net income reached ₹12,904 crore, and cash flow from operations stood at 110 percent of net income, reflecting strong operational efficiency for the IT services company.
Revenue growth at ₹65,799 crore
Operating margin improved to 25.2%
Cash flow exceeded net income, signaling financial strength
Also Read : Tata Group Market Value Erodes Amid IT Slowdown, Auto Weakness and Consumer Pressures
TCS Unveils 1 GW AI Datacentre as Part of Strategic AI Push
As part of its AI-led strategy, TCS announced plans to establish a 1 GW capacity AI datacentre in India and acquire Salesforce-focused digital services firm ListEngage. CEO K Krithivasan emphasized that the company is embedding an “AI-first” culture, also launching the world’s largest “Ideate and Build with AI” hackathon, engaging 2.75 lakh employees globally.
1 GW AI datacentre to be built in India
Acquisition of ListEngage strengthens digital capabilities
Hackathon with 2.75 lakh employees promotes AI adoption
Broad-Based Growth Across Verticals and Regions
The IT giant saw growth across key industry verticals. Life sciences and healthcare grew 3.4 percent sequentially in constant currency, BFSI expanded 1.1 percent, and manufacturing rose 1.6 percent. Regional markets showed mixed trends: India led with 4 percent sequential growth, the Middle East and Africa surged 5.9 percent, and Continental Europe expanded 1.4 percent.
Life sciences & healthcare led vertical growth
BFSI and manufacturing showed steady performance
India and Middle East/Africa recorded strongest gains
Strong Deal Wins and Global Partnerships Drive Momentum
TCS achieved a total contract value (TCV) of $10 billion for the quarter. Significant deals included a $647 million, seven-year partnership with Scandinavian insurer Tryg and a multi-hundred-million-dollar AI and cloud transformation contract with a leading global healthcare firm. Renewals with ALDI South, Weatherford International, and The Warehouse Group strengthened its digital and AI services, while new partnerships in Mexico, the Philippines, and Finland further expanded global AI capabilities.
Total contract value of $10 billion
$647 million deal with Tryg in Scandinavia
Expansion of AI and cloud services in multiple countries
TCS Share Price Reacts Positively Ahead of Results
Ahead of the earnings announcement, TCS share price closed at ₹3,061.7 on NSE, up 1.14 percent. Analysts are closely monitoring the company’s AI-led initiatives and datacentre expansion, which are expected to drive long-term growth. The firm’s focus on AI, cloud, and strategic partnerships positions it as a leading IT services company despite short-term margin pressures.
TCS stock closed at ₹3,061.7, up 1.14%
AI datacentre and strategic deals seen as growth catalysts
Analysts watch execution of AI and cloud strategy closely
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