Mumbai — Tata Consultancy Services (TCS) reported a 5% sequential decline in net profit for the second quarter (Q2 FY26), posting earnings of ₹12,131 crore, compared to ₹12,819 crore in the previous quarter.
On a year-on-year (YoY) basis, however, the IT giant’s profit rose marginally by 1.5% from ₹11,955 crore recorded in the same period last year (Q2 FY25).
The company’s revenue from operations for the July–September quarter stood at ₹65,799 crore, reflecting a 3.7% sequential increase from ₹63,437 crore in Q1 FY26 and a YoY rise of ₹1,540 crore from ₹64,259 crore.
TCS’ total expenses for the quarter were ₹49,463 crore, higher by ₹1,345 crore sequentially and ₹507 crore YoY, compared to ₹48,118 crore in Q1 FY26 and ₹48,956 crore in Q2 FY25, respectively.
The company’s board declared a dividend of ₹11 per share, with October 15 as the record date and November 4 as the payment date. TCS had announced a similar interim dividend in the previous quarter.
Commenting on the results, K. Krithivasan, CEO and Managing Director, said:
“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.”
He added that the company’s strategy is focused on “bold transformation across talent, infrastructure, ecosystem partnerships, and customer value,” highlighting significant investments in AI infrastructure, including plans for a 1 GW capacity AI data center in India.
In line with its AI expansion, TCS also announced the acquisition of ListEngage, a company specializing in Salesforce capabilities.
In the previous quarter (Q1 FY26), TCS had reported around 6% YoY growth in net profit at ₹12,760 crore, with operational revenue up 1.3% YoY to ₹63,437 crore.
With inputs from IANS