TCS posts ₹65,799 cr revenue in Q2Fy26, sets sights on becoming world’s largest AI-led tech services firm
Mumbai: Tata Consultancy Services (TCS) reported consolidated revenue of ₹65,799 crore for the quarter ended September 30, 2025, up 3.7% sequentially, with constant currency growth of 0.8%.
The IT major also recorded a net income of ₹12,904 crore, an 8.4% year-on-year rise, with an operating margin of 25.2%, expanding by 70 basis points quarter-on-quarter.
The company announced a total contract value (TCV) of $10 billion and declared a dividend of ₹11 per share, with a record date of October 15 and payment on November 4.
Cash flow from operations stood at 110.1% of net income.
CEO and Managing Director K. Krithivasan said, “I am pleased with our strong Q2 performance. 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.”
TCS unveiled plans to build a new business entity focused on AI infrastructure, including a 1 GW capacity AI data centre in India.
The board also approved the acquisition of ListEngage, a firm with deep expertise in Salesforce solutions.
Executive Director and COO Aarthi Subramanian said the company’s “AI Hackathon set a new benchmark” in building an AI-first culture, while CFO Samir Seksaria highlighted “disciplined execution” and margin expansion driven by strategic investments and wage hikes.
Growth across verticals
The quarter saw broad-based growth across industries, led by Life Sciences and Healthcare (+3.4% QoQ CC), Technology & Services (+1.8%), Manufacturing (+1.6%), and BFSI (+1.1%). Despite sectoral challenges, Communications & Media (+0.8%) and Energy & Utilities (+0.6%) also contributed positively.
Market performance
Regionally, growth was driven by India (+4.0% QoQ CC) and the Middle East & Africa (+5.9%), while North America grew modestly (+0.8%). The UK saw a slight decline (-1.4%), while Continental Europe grew 1.4% in constant currency terms.
TCS continues to strengthen its position through strategic partnerships, including large deals with Tryg, Weatherford, ALDI SOUTH, Kesko, and ICICI Lombard, and the launch of a new AI-driven operations centre in Mexico City.
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