TCS Q2 results: Tata Consultancy Services (TCS) on Thursday, October 9, reported a 1.4 per cent year-on-year (YoY) rise in its consolidated profit at ₹12,075 crore for the September quarter of the current financial year (Q2FY26). In the same quarter last year, the company’s profit was ₹11,909 crore.
Sequentially, or quarter-on-quarter (QoQ), the IT major’s profit declined by 5.4 per cent, as in Q1FY26, TCS’s consolidated profit was ₹12,760 crore.
Consolidated revenue from operations for the quarter under review rose 2.4 per cent YoY to ₹65,799 crore compared to ₹64,259 crore in the corresponding quarter of the previous financial year.
On a QoQ basis, the company’s revenue increased by 3.7 per cent from ₹63,437 crore in Q1FY26.
“I am pleased with our strong Q2 performance. We are on a journey to become the world’s largest AI-led technology services company,” said K Krithivasan, Chief Executive Officer and Managing Director, TCS.
“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 Q2 results: Five key highlights
1. Key numbers
The IT player’s Q2 revenue grew by 3.7 per cent QoQ to ₹65,799 crore. In constant currency (CC), revenue increased by 0.8 per cent QoQ. International revenue grew by 0.6 per cent QoQ in constant currency.
Consolidated profit declined 5.4 per cent QoQ to ₹12,075 crore. Operating margin increased by 70 bps QoQ to 25.2 per cent.
“We achieved good growth momentum across all verticals this quarter. Our disciplined execution helped us expand our margins while making strategic investments,” said Samir Seksaria, Chief Financial Officer of TCS.
“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,” Seksaria said.
2. Growth by domain
Among the key business domains, “life sciences and healthcare” saw a healthy gain of 3.4 per cent QoQ in CC terms. However, on a YoY basis, the segment shrank by 2.2 per cent.
The BFSI segment grew by 1.1 per cent QoQ and by 1 per cent YoY in CC terms.
The “technology and services” segment also saw a growth of 1.8 per cent QoQ and 2.8 per cent YoY.
3. Markets by geographies
The North American market saw a mild growth of 0.8 per cent QoQ, but shrank 0.1 per cent YoY in CC terms. Latin America, on the other hand, grew 0.3 per cent QoQ and 1.8 per cent YoY.
In Europe, the UK market shrank by 1.4 per cent QoQ and 1.9 per cent YoY. Continental Europe saw a growth of 1.4 per cent QoQ but shrank 3 per cent YoY.
The Indian market saw a significant contraction of 33.3 per cent YoY. However, QoQ, it grew by 4 per cent. The MEA market grew by 5.9 per cent QoQ and 12.7 per cent YoY.
4. Deal TCV and key deal wins
The total contract value (TCV) of deals in Q2 stood at $10 billion.
Among the key deal wins, TCS announced that a leading global healthcare company is significantly expanding its strategic partnership with the company.
TCS also expanded a strategic partnership with Tryg, a leading Scandinavian non-life insurance company. It also expanded collaboration with Weatherford International, a multinational oilfield service company headquartered in North America.
TCS was selected by Kesko, a leading Finnish retail group, as its strategic IT partner.
5. Dividend
The company announced a dividend of ₹11 per share. The record date for the purpose is October 15, and the dividend payment date is November 4.
Read more stories by Nishant Kumar
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
