TCS Q2 Results: Net profit Down Over 5 per cent QoQ, Revenue Increases to Rs 65,799 Crore, Company Declares Dividend

Tata Consultancy Services Q2 Earnings: IT behemoth, Tata Consultancy Services (TCS) announced its financial results for the second quarter of FY 2025-26 on October 9. The company posted a consolidated net profit of Rs 12131 crore for the second quarter of FY26, registering a decline of 5 per cent from Rs 12,819 crore in the previous quarter ended June 30, 2025. On a year-on-year basis the company’s consolidated net profit grew by 1.47 per cent compared to Rs 11,955 crore in the September quarter of FY25.

TCS consolidated revenue from operations in Q2FY26 increased 3.7 per cent to Rs 65799 crore from Rs 63,437 crore in Q1FY26. On a year-on-year basis TCS posted a growth in its consolidated revenue of 2.3 per cent compared to Rs 64,259 crore in Q2FY25.

TCS’ Total Contract Value (TCV) for Q2FY26 stood at $10 billion compared to $9.4 billion in Q1FY26. The operating margin for Q2FY26 stood at 25.20 per cent as against 24.50 per cent in Q1FY26, indicating a growth of 70 basis points on a quarterly basis. The net margin of the IT company stood at 19.60 per cent in Q2FY26 compared to 20.10 per cent in Q1FY26.

K Krithivasan, chief executive officer and managing director of TCS said in a press release that the company plans to become the world’s largest AI-led technology services company. The TCS CEO also called the Q2FY26 performance strong.

“I am 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,” Krithivasan said.

TCS Dividend

The board of directors of TCS declared an interim dividend of Rs 11 per equity share of Re 1 each. The company informed the exchanges that the second interim dividend will be paid on November 4, 2025 to eligible shareholders. TCS added that the record date for the dividend issue is October 15, 2025.

“The second interim dividend shall be paid on Tuesday, November 4, 2025, to the equity shareholders of the company whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Wednesday, October 15, 2025, which is the Record Date, fixed for the purpose,” TCS said in a filing.

Broad Based Growth Across Verticals and Geographies

On a yearly basis, TCS posted broad-based growth across verticals, such as banking, financial services, and insurance (BFSI), technology & services and energy, and resources and utilities. These verticals made up 32.20 per cent, 8.50 per cent and 5.90 per cent of the company’s revenue, respectively. Other verticals witnessed declines on a y-o-y basis.

Samir Seksaria, chief financial officer, TCS said in the release that the company has achieved robust growth across all business verticals and has expanded its margins while making strategic investments.

“We 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 aspirations,” Seksaria said.

Share of revenue from geographies, such as India and the UK witnessed y-o-y declines of 1.90 per cent and 33.30 per cent, respectively. On the other hand, the share of revenue from geographies, such as Latin America, Asia Pacific, and Middle East and Africa witnessed an increase of 1.80 per cent, 2 per cent and 12.70 per cent, respectively.

TCS Share Price History

On October 9, shares of TCS surged 1.28 per cent to an intra-day high of Rs 3,066 apiece on the NSE. However, since the financial results were declared after the closing of the trading session, the impact of the result on the stock’s performance will be seen on October 9.

In the past one year, shares of TCS have declined more than 28 per cent on the NSE. On a year-to-date (YTD) basis, the stock declined over 25 per cent, and in the last six months, the stock fell nearly 7 per cent. However, in the last one month, the stock has gained 0.98 per cent, while in the last five days, it has surged over 4 per cent.