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Key Points

Tata Consultancy Services (TCS) reported a slight sequential dip in Q2 net profit while maintaining year-on-year growth. The company's revenue increased by 3.7% quarter-on-quarter, reaching Rs 65,799 crore. TCS is focusing on transformative AI strategies and infrastructure investments. The company also announced a consistent dividend of Rs 11 per share, reflecting steady financial performance.

Key Points: TCS Q2 Profit Dips 5% With Rs 12,131 Crore AI Expansion Plan

  • TCS Q2 net profit falls 5% sequentially to Rs 12,131 crore
  • Revenue grows 3.7% quarter-on-quarter to Rs 65,799 crore
  • Company announces Rs 11 per share dividend
  • Strategic investments in AI infrastructure and Salesforce capabilities
2 min read

TCS Q2 net profit falls 5 pc sequentially to Rs 12,131 crore

TCS reports Q2 financial results, announces AI infrastructure investments and strategic Salesforce acquisition while maintaining steady revenue growth.

"We are on a journey to become the world's largest AI-led technology services company. - K Krithivasan, TCS CEO"

Mumbai, Oct 9

Tata Consultancy Services (TCS) on Thursday reported the net profit for the second quarter of the current financial year at Rs 12,131 crore, down over 5 per cent sequentially from Rs 12,819 crore in the previous quarter.

However, India's biggest IT service provider's net profit jumped marginally by over a per cent year-on-year (YoY) from Rs 11,955 crore in the same quarter a year ago (Q2 FY25).

The revenue from operations for the July-September quarter stood at Rs 65,799 crore, up Rs 2362 crore or 3.7 per cent from Rs 63,437 crore in the April-June quarter.

According to an exchange filing, the operational revenue jumped Rs 1,540 crore on a YoY basis from Rs 64,259 crore in the July-September quarter a year ago.

Meanwhile, the company's total expenses in Q2 increased by Rs 1,345 crore sequentially and by Rs 507 crore YoY to Rs 49,463 crore from Rs 48,118 crore in Q1 FY26 and Rs 48,956 crore in Q2 FY25, respectively.

The IT major has announced a dividend of Rs 11 per share. The record date for the dividend will be October 15, and the payment for the same will be made on November 4. TCS had declared an interim dividend of Rs 11 per share in its previous quarterly results as well.

K Krithivasan, Chief Executive Officer and Managing Director, said, "I would like to thank all our employees for their dedication and excellence. 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," said Krithivasan.

Further, the Tata Group firm announced strategic investments in a new business entity to build world-class AI infrastructure, including a 1 GW capacity AI datacenter in India, as per the filing.

The TCS board has also approved the acquisition of ListEngage with deep capabilities in Salesforce.

Earlier, the IT bellwether registered around 6 per cent growth in net profit (year-on-year) at Rs 12,760 crore in the first quarter of FY26. The company saw revenue from operations growing 1.3 per cent (on-year) to Rs 63,437 crore for the April-June quarter.

- IANS

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Reader Comments

R
Rohit P
Expenses are increasing faster than revenue growth - that's worrying. Hope the AI investments pay off soon. Still, Rs 11 dividend is good for shareholders like me.
A
Arjun K
The 1 GW AI datacenter in India is a massive move! This shows TCS is serious about AI leadership. Short-term profit fluctuations are normal when making such strategic investments.
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Sarah B
As someone working in the IT sector, I appreciate TCS maintaining the dividend despite the profit dip. The ListEngage acquisition shows they're expanding capabilities strategically.
K
Karthik V
While the numbers look mixed, the vision to become world's largest AI-led company is ambitious. Hope this translates to better growth in coming quarters. TCS has always been a pioneer.
M
Michael C
Respectfully, I think TCS needs to focus more on operational efficiency. The 5% sequential drop in profit while expenses rise significantly indicates some underlying challenges that need addressing.

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