Tata Consultancy Services (TCS) saw a 1.4 per cent year-on-year (YoY) increase in consolidated net profit to Rs 12,075 crore for the quarter ended 30 September 2025, coming in below analyst expectations.
The company also announced a second interim dividend of Rs 11 per share. The record date has been set as 15 October and the payment will be made on 4 November.
Sequentially, net profit declined due to restructuring expenses of Rs 1,135 crore. These expenses are linked to workforce optimisation measures, which are expected to affect more than 12,000 employees.
Revenue and Margins
The company posted revenue of Rs 65,799 crore, a sequential increase of 3.7 per cent and 0.8 per cent growth in constant currency terms. Operating margin expanded by 70 basis points to 25.2 per cent, while net margin improved to 19.6 per cent. Net income as per the consolidated financial statements stood at Rs 12,904 crore and cash flow from operations was 110 per cent of net income.
AI-led Strategy
Reiterating its strategic transformation agenda, TCS said it is “setting course to become the world’s largest AI-led technology services company.” The company announced a new business entity that will build a 1 gigawatt AI datacentre capacity in India. It also confirmed the acquisition of ListEngage, a Salesforce-focused consulting firm, to strengthen its cloud and customer experience capabilities.
“I am pleased with our strong Q2 performance,” said K Krithivasan, Chief Executive Officer and Managing Director of TCS. “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.”
Business Growth And Deal Wins
Growth during the quarter was broad-based across industry verticals. Life sciences and healthcare grew 3.4 per cent quarter-on-quarter (QoQ) in constant currency, while banking, financial services and insurance (BFSI) rose 1.1 per cent and manufacturing increased 1.6 per cent.
Among geographic markets, India was one of the top performers with sequential growth of 4 per cent. The Middle East and Africa region grew 5.9 per cent, while Continental Europe posted 1.4 per cent growth. Regional markets saw a slight decline during the quarter. The company reported total contract value of USD 10 billion, driven by large deal wins across sectors.
“We achieved good growth momentum across all verticals this quarter,” said Samir Seksaria, Chief Financial Officer of TCS. “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.” |
