TCS Q2 profit sees marginal rise to ₹12,075 cr, announces ₹11 interim dividend; vows to build world-class AI infra
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TCS strengthened its workforce and partnerships, particularly with Microsoft, to advance AI and cloud solutions.
TCS Q2 profit sees marginal rise to ₹12,075 cr, announces ₹11 interim dividend; vows to build world-class AI infra
Tata Consultancy Services (TCS) reported a slight increase in Q2 FY26 net profit to ₹12,075 crore, driven by data, cloud, and AI transformations. The company plans to invest in a world-class AI infrastructure, including a 1 GW AI data center in India, and has announced a dividend of ₹11 per share, payable on November 4, 2025.
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TCS's Q2 FY26 results show a slight profit increase to ₹12,075 crore, with revenue at ₹65,799 crore. The company is investing in AI infrastructure, including a 1 GW data centre in India, and has announced a dividend of ₹11 per share. TCS aims to enhance its AI capabilities and market position.
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TCS strengthened its workforce and partnerships, particularly with Microsoft, to advance AI and cloud solutions.
Indian IT bellwether and India's biggest IT company, Tata Consultancy Services (TCS), has reported a consolidated net profit of ₹12,075 crore for the second quarter of financial year 2025-26 (Q2 FY26), up 1.4% from ₹11,909 crore in the corresponding quarter last year. The marginal growth in profitability was attributed to data, cloud and AI-powered enterprise transformation.
The company's revenue stood at ₹65,799 crore, up 2.4% from ₹64,259 crore in the year-ago period. It also announced a dividend per share at ₹11 per equity share, which will be paid on Tuesday, November 4, 2025. The company's operating margin for Q2 stood at 25.2%, with an expansion of 70 bps QoQ, and the Q2 total contract value (TCV) came in at $10 billion.
Key takeaways:
TCS says Q2 FY26 saw broad-based growth, which was delivered by disciplined execution. As part of its strategic investments, the company has said it'll invest in a new business entity to build world-class AI infrastructure comprising a 1 GW capacity AI data centre in India.
The TCS board has also approved the acquisition of ListEngage, with deep capabilities in Salesforce. It has also announced sustained investments in nurturing an AI-first culture and talent, with the world’s largest ‘Ideate and Build with AI’ hackathon with 275,000 TCSers.
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TCS says its international revenue has grown 0.6% QoQ in constant currency, while the growth across verticals was led by continued momentum in BFSI, which saw 1.1% QoQ growth in constant currency. Life sciences and healthcare (+3.4% QoQ CC), manufacturing (+1.6% QoQ CC) and CMI (+0.8% QoQ CC) delivered growth amidst industry-specific challenges, says the company.
K Krithivasan, Chief Executive Officer and Managing Director, said he's pleased with our strong Q2 performance. "We are on a journey to become the world’s largest AI-led technology services company. Our journey is anchored in bold transformation across talent, infrastructure, ecosystem partnerships and customer value. The investments, including the building of a world-class AI infrastructure business, demonstrate our commitment to this transformation.”
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TCS delivered strong growth momentum, led by Data, Cloud and AI-powered enterprise transformation, says Aarthi Subramanian, Executive Director - President and Chief Operating Officer. "Our customer engagements are focused on rapid value realisation to deliver speed, efficiency and growth. TCS's AI Hackathon set a new benchmark – it is the largest, most diverse and innovative AI-first culture-building initiative. Our new AI and Services Transformation unit will further scale and integrate our efforts.”
Samir Seksaria, Chief Financial Officer, said TCS achieved good growth momentum across all verticals this quarter. "Our disciplined execution helped us expand our margins while making strategic investments. We have prioritised wage hikes, building future-ready capabilities and establishing new ecosystem partnerships. Looking ahead, our financial resilience and robust balance sheet will support both internal transformation initiatives and external investments aligned with our aspiration.”
Tata Consultancy Services (TCS) had recorded a 6% year-on-year rise in its consolidated net profit for Q1 FY26 (April-June) quarter, reaching ₹12,760 crore compared to ₹12,040 crore in the same quarter last year. TCS share closed 1.16% up at ₹3,061.95 on the BSE.
