TCS Q2 FY26: Profit up 1% at Rs 12,075 crore; interim dividend of Rs 11 announced

Tata Consultancy Services Ltd (TCS) on Thursday reported a marginal 1.39 per cent year-on-year (YoY) rise in its consolidated net profit for the second quarter of ongoing financial year 2025-26 (Q2 FY26). During the quarter under review, profit came at Rs 12,075 crore as against Rs 11,909 crore in the year-ago period.

The IT bellwether's revenue from operations climbed 2.40 per cent to Rs 65,799 crore in Q2 FY26 compared to Rs 64,259 crore in the corresponding period last year.

TCS said its international revenue grew 0.6 per cent sequentially (quarter-on-quarter) in constant currency (CC), while the BFSI segment posted a 1.1 per cent QoQ rise. Other verticals such as Technology & Services (+1.8 per cent), Life Sciences & Healthcare (+3.4 per cent), Manufacturing (+1.6 per cent) and Communications, Media & Information Services (+0.8 per cent) also contributed to overall growth, despite sector-specific challenges.

Operating margin for the quarter improved by 70 basis points (bps) to 25.2 per cent, while net margin stood at 19.6 per cent. The IT major reported cash flow from operations at 110.1 per cent of net income, highlighting strong operational efficiency.

The company's total contract value (TCV) for the quarter stood at $10 billion.

K Krithivasan, Chief Executive Officer and Managing Director at TCS, said, "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 also declared an interim dividend of Rs 11 per share. "We would like to inform you that at the Board Meeting held today, the Directors have declared second interim dividend of Rs 11 per Equity Share of Re 1 each of the Company," the IT major stated.

"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," it added.

The quarterly earnings were released post-market hours today. Earlier in the day, TCS shares settled 1.16 per cent higher at Rs 3,061.95.