Did TCS Q2 net profit decline by 5 percent to Rs 12,131 crore?
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Synopsis
In a recent financial update, TCS reveals a sequential drop in net profit for Q2 FY26 to Rs 12,131 crore, though it shows a slight YoY increase. This report highlights the company's revenue growth and future investments in AI infrastructure, making it a compelling story for stakeholders.
Key Takeaways
- Net profit decreased by over 5% sequentially.
- YoY profit increased slightly by over 1%.
- Revenue from operations rose by 3.7%.
- Total expenses increased to Rs 49,463 crore.
- TCS announced a Rs 11 per share dividend.
Mumbai, Oct 9 (NationPress) Tata Consultancy Services (TCS) announced its net profit for the second quarter of the ongoing financial year at Rs 12,131 crore, reflecting a decrease of over 5 percent sequentially from Rs 12,819 crore in the prior quarter.
However, the largest IT services provider in India saw its net profit increase slightly by over 1 percent year-on-year (YoY), rising from Rs 11,955 crore in the corresponding quarter a year earlier (Q2 FY25).
Revenue from operations for the period of July to September reached Rs 65,799 crore, which is an increase of Rs 2,362 crore or 3.7 percent from Rs 63,437 crore in the April-June quarter.
According to an exchange filing, operational revenue also increased by Rs 1,540 crore on a YoY basis compared to Rs 64,259 crore in the same quarter last year.
In addition, the company's total expenses in Q2 rose by Rs 1,345 crore sequentially and by Rs 507 crore YoY, amounting to Rs 49,463 crore, up from Rs 48,118 crore in Q1 FY26 and Rs 48,956 crore in Q2 FY25.
TCS has declared a dividend of Rs 11 per share. The record date for this dividend is set for October 15, with payments scheduled for November 4. TCS previously announced an interim dividend of Rs 11 per share in its last quarterly results as well.
K Krithivasan, Chief Executive Officer and Managing Director, stated, "I would like to express my gratitude to all our employees for their commitment and excellence. We are on a path to becoming the world's largest AI-led technology services company."
"Our journey is focused on transformative changes across talent, infrastructure, ecosystem partnerships, and customer value. The investments, including the establishment of a world-class AI infrastructure business, reflect our dedication to this transformation," Krithivasan added.
Additionally, the Tata Group firm has revealed strategic investments in a new business entity aimed at developing world-class AI infrastructure, including a 1 GW capacity AI datacenter in India, as mentioned in the filing.
The TCS board has also authorized the acquisition of ListEngage, which possesses significant expertise in Salesforce.
Previously, the IT giant experienced approximately 6 percent growth in net profit (YoY) at Rs 12,760 crore in the first quarter of FY26. The company registered a revenue increase of 1.3 percent (YoY) to Rs 63,437 crore for the April-June period.
Point of View
I recognize the significance of TCS's financial results amid a competitive IT landscape. Despite a sequential decline in net profit, the year-on-year increase, along with strategic investments in AI, indicates a proactive approach to future challenges and opportunities. It’s essential for stakeholders to stay informed as TCS navigates this dynamic environment.
NationPress
09/10/2025
Frequently Asked Questions
What was TCS's net profit in Q2 FY26?
TCS reported a net profit of Rs 12,131 crore for Q2 FY26, which is a 5% decline from the previous quarter.
How does TCS's Q2 profit compare YoY?
Year-on-year, TCS's net profit rose slightly by over 1% from Rs 11,955 crore in Q2 FY25.
What are TCS's revenue figures for the July-September quarter?
Revenue from operations stood at Rs 65,799 crore for the July-September period, up 3.7% from the previous quarter.
What dividend has TCS announced?
TCS has announced a dividend of Rs 11 per share, with a record date of October 15.
What are TCS's future plans regarding AI?
TCS is making significant investments to build world-class AI infrastructure, including a new AI datacenter in India.
