TCS Q2 results: Top 10 insights from the September quarter results

India’s largest IT services company by market capitalization Tata Consultancy Services reported its September quarter results after market hours on Thursday. The company’s revenue exceeded Street estimates while revenue fell below expectations.

Here are the top 10 earnings results:

1) PAT
TCS’s net profit for the second quarter stood at Rs 12,075 crore, compared to Rs 11,909 crore in the same period last year. It was up 1.4% year-on-year, but lower than Street’s estimates of Rs 12,573 core. The profit after tax (PAT) can be allocated to the shareholders of the company. On a sequential basis, PAT fell 5.3% from Rs 12,760 crore in Q1FY26.

2) Income
Revenue from operations stood at Rs 65,799 crore, up 2.4% from Rs 64,259 crore in the corresponding quarter of the last fiscal. It was above Street estimates of Rs 65,069 crore. Revenue rose 3.7% QoQ from Rs 63,437 crore reported in Q1FY26. TCS’s international revenue grew 0.6% QoQ at constant exchange rates, while the company claimed broad-based growth across all verticals, led by continued momentum in BFSI (+1.1% QoQ CC), TSS (+1.8% QoQ CC). The Life Sciences and Healthcare segment reported 3.4% quarter-on-quarter growth, while production rose 1.6% quarter-on-quarter amid sector-specific challenges. The CMI segment rose 0.8% quarter on quarter.3) Interim dividend
The company declared a second interim dividend of Rs 11 per equity share, which will be paid on Tuesday, November 4, 2025. The company has set the record date as October 15, 2025.

4) The company’s operating profit stood at Rs 16,565 crore in Q1FY26 versus Rs 15,514 crore in Q4FY25 and Rs 15,465 crore in Q1FY25.

5) Operating margin was 25.2%, up 70 basis points quarter-on-quarter.

5) Net income increased by 8.4% year-on-year, while net margin was 19.6%.

6) Cash flow from operating activities amounted to 110.1% of net profit.

7) Total contract value (TCV) in the second quarter was reported at $10 billion.

8) Strategic investments
The company announced new strategic investments where the company plans to build a new business entity for AI infrastructure development: a 1 GW AI data center in India. The company’s board approved the acquisition of ListEngage with deep capabilities in Salesforce.

9) Management commentary
Commenting on the company’s earnings, K Krithivasan, CEO and Managing Director, said he was pleased with the company’s strong performance in the second quarter. “We are on track to become the world’s largest AI-led technology services company. Our journey is anchored in a bold transformation across talent, infrastructure, ecosystem partnerships and customer value. The investments, including building a world-class AI infrastructure company, demonstrate our commitment to this transformation,” Krithivasan said.

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