India’s largest IT services firm Tata Consultancy Services (TCS) on Thursday (October 9, 2025) reported a nearly 1.4% increase in consolidated net profit to ₹Rs 12,075 crore in the July-September quarter, buoyed by broad-based growth across verticals, particularly the Banking, Financial Services and Insurance segment.
The IT major had posted a profit of ₹11,909 crore in the corresponding quarter of 2024-25.
Revenues from operations for the second quarter of FY2025-26 rose by 2.39% to ₹65,799 crore, up from ₹64,259 crore in the year-ago quarter, according to a regulatory filing by TCS, which kicked off the Q2 earnings season for tech firms.
Sequentially, profit declined by 5.3%, although revenue increased by 3.7%.
“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. 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 CEO and MD K. Krithivasan said.
Total Contract Value (TCV) — revenue a company expects to receive from a customer contract over its entire duration —stood at $10 billion in the second quarter, TCS said.
TCS CFO Samir Seksaria said the company’s “disciplined execution” has aided margin expansion alongside strategic investments.
“We achieved good growth momentum across all verticals this quarter. 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,” he said.
During the second quarter of FY26, the company’s Technology & Services segment recorded the highest growth of 2.8% year-on-year, while BFSI (Banking, Financial Services, and Insurance), which contributed the most, 32.2% to the topline, grew 1% year-on-year.
In absolute terms, revenue from BFSI stood at ₹25,717 crore in the second quarter, up by 8.12% from ₹23,785 crore in the second quarter of FY25. The Consumer Business segment generated revenue of ₹10,351 crore, up from ₹10,025 crore in the corresponding quarter of the previous fiscal.
In geographical markets, the U.S. declined slightly (0.1%) in North America, while Latin America saw 1.8% growth.
In India, a decline of 33.3% was observed during the quarter under review, with the country accounting for 5.8% of the total revenues, compared to 8.9% in the same quarter of the previous fiscal year.
TCS also announced the incorporation of a Wholly Owned Subsidiary (WOS) in India to establish multiple AI and Sovereign Data Centres for providing Infrastructure and technology-enabled Services. In the filing, the company said it will establish a new business entity to build a 1 GW capacity AI data centre in India.
Furthermore, it said it has acquired a 100% stake in U.S.-based ListEngage, for $72.80 million (excluding management incentives and costs). ListEngage is a full-stack Salesforce partner that specialises in Marketing Cloud, CRM, Data Cloud, Agentforce, and AI advisory services for enterprises.
TCS declared a second interim dividend of ₹11 per equity share of ₹1 each of the company.
“The second interim dividend shall be paid on Tuesday, November 4, 2025, to the equity shareholders of the Company whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Wednesday, October 15, 2025, which is the Record Date, fixed for the purpose,” the company said.
Shares of TCS settled at ₹3,061.95 apiece on the BSE on Thursday (October 9, 2025), 1.16% higher than the previous close. The financial results were announced after market hours.
Published – October 09, 2025 05:05 pm IST
