Tata Consultancy Services (TCS) on Thursday reported a marginal rise in its second-quarter profit, posting a 1.4% increase year-on-year.
The company recorded a net profit of Rs 12,075 crore for the July–September quarter of FY26, compared to Rs 11,909 crore in the same period last year. The result was slightly below market expectations, which had forecast a profit of around Rs 12,573 crore.
Revenue from operations rose 2.4% to Rs 65,799 crore from Rs 64,259 crore in the corresponding quarter a year ago. Sequentially, revenue grew 3.7% from Rs 63,437 crore reported in the previous quarter. In constant currency terms, revenue increased 0.8%, showing moderate growth amid a challenging global demand environment.
The company’s board also declared a second interim dividend of Rs 11 per equity share. The record date for the dividend is October 15, 2025, and it will be paid on November 4, 2025.
TCS said its international business grew 0.6% quarter-on-quarter in constant currency, led by steady demand in key sectors. The Banking, Financial Services and Insurance (BFSI) segment rose 1.1%, while Technology & Services grew 1.8%. Life Sciences and Healthcare expanded 3.4%, Manufacturing gained 1.6%, and Communications, Media & Information Services increased 0.8% sequentially.
The company’s operating margin for the quarter improved by 70 basis points to 25.2%, reflecting better cost control and operational efficiency. Net margin stood at 19.6%. TCS reported cash flow from operations at 110.1% of net income, underlining its strong cash generation capability.
The total contract value (TCV) for the quarter stood at $10 billion, indicating continued deal momentum across markets despite caution among global clients.
K Krithivasan, Chief Executive Officer and Managing Director of TCS, said the company is focusing on long-term transformation through artificial intelligence (AI) and technology integration. “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,” he said.
TCS also announced that the interim dividend will be distributed to shareholders whose names appear in the company’s records as of the record date. “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 or in the records of the Depositories as beneficial owners of the shares as on Wednesday, October 15, 2025,” the company stated.
