TCS Q2 Results: Revenue Jumps 2.4%, Margin Up 70 bps; Dividend Rs 11/Share

TCS Q2 Results: Tata Consultancy Services (TCS) reported a modest 1.4% year-on-year rise in net profit to Rs 12,075 crore for Q2FY26, though profit slipped sequentially.

Tata Consultancy Services (TCS), India’s largest IT services firm, on Thursday (October 9) reported a modest 1.4% year-on-year (YoY) rise in consolidated net profit to Rs 12,075 crore for the September 2025 quarter (Q2FY26). The growth was driven by strong deal wins and improved margins. The company had posted a profit of Rs 11,909 crore in the same period last year.

On a sequential basis, however, the tech major’s profit slipped 5.4% from Rs 12,760 crore in Q1FY26.

Revenue from operations came in at Rs 65,799 crore — up 2.4% YoY and 3.7% sequentially.

“We are on a journey to become the world’s largest AI-led technology services company,” said K Krithivasan, CEO & MD, TCS.

“Our investments in AI infrastructure and ecosystem partnerships reflect our commitment to transformation and customer value creation.”

Margins Improve, Deal Flow Remains Solid

TCS’s operating margin rose by 70 basis points sequentially to 25.2%, even as profit declined quarter-on-quarter. CFO Samir Seksaria credited the improvement to “disciplined execution and strategic investments.”

“We’ve prioritised wage hikes, future-ready capabilities, and ecosystem partnerships,” Seksaria added. “Our financial resilience allows us to sustain long-term growth.”

Sector Snapshot: Life Sciences Gains, BFSI Stays Flat

• Life Sciences & Healthcare: +3.4% QoQ, -2.2% YoY
• BFSI (Banking, Financial Services & Insurance): +1.1% QoQ, +1% YoY
• Technology & Services: +1.8% QoQ, +2.8% YoY

The company said demand for AI-powered transformation projects continued to grow, particularly among enterprise clients seeking efficiency and automation.

Regional Performance: MEA Outperforms, India Sees Slowdown

• North America: +0.8% QoQ, -0.1% YoY
• UK: -1.4% QoQ, -1.9% YoY
• Continental Europe: +1.4% QoQ, -3% YoY
• India: +4% QoQ, but down 33.3% YoY
• Middle East & Africa (MEA): +5.9% QoQ, +12.7% YoY

The MEA region was the clear bright spot, posting double-digit annual growth, while domestic business slowed due to reduced discretionary spending.

$10 Billion in New Deals, Interim Dividend Declared

TCS closed Q2 with a total contract value (TCV) of $10 billion, led by large deals in healthcare, retail, and insurance.

Key wins included:

• An expanded partnership with a global healthcare major.
• A new collaboration with Tryg, a Scandinavian insurer.
• A tech alliance with Weatherford International in North America.
• A fresh IT services deal with Finnish retail group Kesko.

The company’s board also announced an interim dividend of Rs 11 per share, with a record date of October 15 and payout on November 4, 2025.