TCS Q2 Results: Revenue up 3.7% but net profit slips 5.36%, ₹11 dividend declared

TCS Q2 Results 2025-26: Revenue of India’s largest IT services firm rose 3.72% to ₹65,799 crore even as net profit fell 5.36% to ₹12,075 crore.

Tata Consultancy Services Ltd. saw its bottomline erode in July-September 2025. Its profitability grew but didn't match up to estimates.

TCS CEO Krithi Krithivasan. (PTI)

Consolidated revenue of India’s largest IT services company rose 3.72% over the previous three months to ₹65,799 crore in the three months ended 30 September, according to an exchange filing on Thursday. That compares with the ₹65,275-crore estimate of analysts tracked by Bloomberg.

TCS Q2 Results 2025-26: Key Highlights (QoQ)

• Revenue up 3.72% at ₹65,799 crore (Estimate: ₹65,275 crore)
• EBIT up 6.8% at ₹16,565 crore (Estimate: ₹16,036 crore)
• EBIT margin up 70 basis points at 25.2% (Estimate: 26.70%)
• Net profit down 5.36% at ₹12,075 crore (Estimate: ₹12,598 crore)
• Cash flow from operations at 110.1% of net profit

One basis point is one-hundredth of a percentage point.

In constant currency terms, revenue grew 0.8% sequentially.

There was no mention of headcount or attrition in the exchange filings.

A snapshot of TCS Q2 Results 2025-26. (HT)

TCS Dividend

Separately, TCS has declared an interim dividend of ₹11/share, the record date for which is 15 October for a payout of 4 November.

“We are on a journey to become the world’s largest AI-led technology services company,” TCS Chief Executive Officer Krithi Krithivasan said in a statement on Thursday. TCS has cancelled the post-earnings press conference to observe Ratan Tata's first death anniversary today.

“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.”

TCS Dealmaking

While TCS has declared a total contract value of $10 billion for the second quarter, it didn't specify the quantum of AI deals struck between July and September.

The Tata Group company witnessed broad-based growth across verticals with the bread-and-butter BFSI business growing at 1.1% sequentially. The segment continued to account for 30.8% of the company's topline.

Geographically, North America accounted for 47.6% of TCS's revenue in the second quarter, growing at 0.8% in constant-currency terms. The UK (17%, down 1.4%), Europe (14.6%, up 1.4%), India (8.9%, up 4%) and Asia-Pacific (8.0%, up 0.3%) rounded up the Top 5.

“Disciplined execution helped us expand our margins while making strategic investments,” TCS's Chief Financial Officer Samir Seksaria said in a statement. “We have prioritised wage hikes, building future-ready capabilities and 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.”

On Thursday, TCS shares rose 1.09% to ₹3,060.20 apiece on the BSE even as the benchmark Nifty 50 ended the day 0.54% higher at 25,181.80 points. TCS’ quarterly results were declared after market hours.