TCS shares slip 2% amid reports of new AI unit, Rs 2,130 crore lease deal; key details

Tata Consultancy Services (TCS) shares fell 2 per cent in Thursday’s trade after reports surfaced that the IT major has signed a lease for 1.4 million sq ft of office space at 360 Business Park in Bengaluru’s Electronic City. The development also comes amid reports that the company is setting up a new Artificial Intelligence and Services Transformation unit.

The TCS stock fell 1.7 per cent to hit the day’s low of Rs 3,101 on BSE over its previous close of Rs 3,156.25. At 10:56 am, the scrip was trading 1.15 per cent lower at Rs 3,120. The counter has declined nearly 32 per cent from its 52-week high of Rs 4,585.90 apiece.

Reports also suggest that TCS veteran Amit Kapur has been appointed to head the unit globally as Chief AI and Services Transformation Officer, effective September 1. 

Towers 5A and 5B, with a combined area of 14 lakh sq ft—6.8 lakh sq ft in one tower and 7.2 lakh sq ft in the other. The property is owned by Labzone Electronics City Pvt Ltd. Under the agreement, TCS will pay a monthly rent of Rs 9.31 crore, translating to Rs 66.5 per sq ft, and has furnished a security deposit of Rs 112 crore. The lease includes a 12 per cent rent escalation every three years, taking the overall commitment to an estimated Rs 2,130 crore, according to reports.

Meanwhile, TCS on Thursday said it has bagged a cloud-led enterprise modernisation deal from Philippines-based pharma major Unilab. As part of the engagement, TCS will help Unilab transition from its legacy ERP system to a modern, cloud-based digital core powered by SAP S/4HANA on RISE.

In an earlier exchange filing dated August 25, TCS had also informed the stock exchanges about a separate development. The company announced that it has enabled ICICI Lombard to deliver a fully automated multi-region disaster recovery setup on AWS Cloud, making the insurer one of the first in India to achieve such resilience. The project, TCS said, leverages an automation-first, infrastructure-as-code approach using AWS-native technologies to ensure intelligent failover with minimal downtime.

TCS added that the engagement highlights its focus on helping BFSI clients adopt cloud-native innovation and next-generation resilience. Ujjwal Mathur, President & Country Head – India Business at TCS, said the solution “sets a new benchmark for BFSI organisations by enabling seamless, fast and scalable disaster recovery with zero touch.”