Broad-based growth and disciplined execution delivers strong Q2 performance
Announces strategic investments
MUMBAI, October 9, 2025: Tata Consultancy Services (BSE: 532540, NSE: TCS) reported its consolidated financial results according to Ind AS and IFRS, for the quarter ending September 30, 2025.
Highlights of the Quarter Ended September 30, 2025
K Krithivasan, Chief Executive Officer and Managing Director, said “I am pleased with our strong Q2 performance. 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. 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.”
Aarthi Subramanian, Executive Director - President and Chief Operating Officer, said “We delivered strong growth momentum led by Data, Cloud and AI powered enterprise transformation. Our customer engagements are focused on rapid value realization to deliver speed, efficiency and growth. TCS' AI Hackathon set a new benchmark – is the largest, most diverse and innovative AI-first culture building initiative. Our new AI and Services Transformation unit will further scale and integrate our efforts.”
Samir Seksaria, Chief Financial Officer, said, “We achieved good growth momentum across all verticals this quarter. Our disciplined execution helped us expand our margins while making strategic investments. We have prioritized wage hikes, building future-ready capabilities and establishing new ecosystem partnerships. Looking ahead, our financial resilience and robust balance sheet will support both internal transformation initiatives and external investments aligned with our aspiration.”
Sudeep Kunnumal, Chief HR Officer, said: “I am honoured to take over this responsibility as we chart our path to becoming the world’s largest AI-led technology services company. I look forward to working with our employees and all stakeholders as we pursue this exciting vision”.
Q2 FY26 Segment Highlights
Growth by Domain
| Industry | Composition (%) | Q-o-Q CC Growth (%) |
Y-o-Y CC Growth (%) |
||
| Q2 FY25 | Q1 FY26 | Q2 FY26 | |||
| BFSI | 30.8 | 32.0 | 32.2 | 1.1 | 1.0 |
| Consumer Business | 15.2 | 15.6 | 15.3 | - 1.0 | - 2.9 |
| Life Sciences & Healthcare | 10.3 | 10.2 | 10.5 | 3.4 | - 2.2 |
| Manufacturing | 8.6 | 8.7 | 8.8 | 1.6 | - 1.1 |
| Technology & Services | 8.0 | 8.4 | 8.5 | 1.8 | 2.8 |
| Communication & Media | 5.9 | 5.8 | 5.9 | 0.8 | - 5.1 |
| Energy, Resources and Utilities | 5.7 | 5.9 | 5.9 | 0.6 | 0.2 |
| Regional Markets & Others | 15.5 | 13.4 | 12.9 | - 1.1 | - 18.1 |
| Total | 100.0 | 100.0 | 100.0 | 0.8 | - 3.3 |
Growth by Markets
| Geography | Composition (%) | Q-o-Q CC Growth (%) |
Y-o-Y CC Growth (%) |
||
| Q2 FY25 | Q1 FY26 | Q2 FY26 | |||
| Americas |
|
|
|
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| North America | 47.6 | 48.7 | 48.8 | 0.8 | - 0.1 |
| Latin America | 1.8 | 1.9 | 1.9 | 0.3 | 1.8 |
| Europe |
|
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| UK | 17.0 | 18.0 | 17.5 | - 1.4 | - 1.9 |
| Continental Europe | 14.6 | 15.0 | 15.3 | 1.4 | - 3.0 |
| Asia Pacific | 8.0 | 8.4 | 8.3 | 0.3 | 2.0 |
| India | 8.9 | 5.8 | 5.8 | 4.0 | - 33.3 |
| MEA | 2.1 | 2.2 | 2.4 | 5.9 | 12.7 |
| Total | 100.0 | 100.0 | 100.0 | 0.8 | -3.3 |
Key Highlights:
Customer Speak:
“We are simplifying our IT landscape enabling us to further invest in new technology and develop our business across Scandinavia. This means we can deliver the best customer experiences, continue to differentiate Tryg in the market, and strengthen our competitiveness. The extended partnership with TCS, which is one of the leading technology companies in the world, is a key initiative supporting our 2027 target to simplify and scale Tryg’s business. TCS is the right partner to assure an important contribution towards achieving our ambition.”
Johan Kirstein Brammer, Group CEO, Tryg
“With the energy sector facing rapid technological advancements and heightened demands for efficiency, this renewed partnership with TCS underscores the strategic importance of integrating AI-driven solutions and process optimization. These innovations are crucial not only to drive operational excellence but to position Weatherford as a leader in adapting to the evolving industry landscape. By leveraging TCS’ expertise, we aim to enhance scalability, foster innovation, and ensure sustainable growth while reinforcing our commitment to delivering unmatched value to our customers.”
Girish Saligram, President and CEO at Weatherford International
“The NOW Group warmly welcomes the partnership with TCS in building the Sovereign Data Cloud Infrastructure for both the public and private sectors in the Indo-Pacific region. This partnership with TCS, a global market giant, marks a significant step towards enhancing our national digital sovereignty and reducing reliance on foreign technologies. NOW’s and TCS’ expertise and innovative services will contribute to our nation’s data sovereignty by defending against risks and threats while creating a scalable, secure, and robust data infrastructure. The partnership between NOW and TCS exemplifies the technological aspirations of both India and the Philippines, heralding a new dawn of critical digital transformation for the Philippines.”
Mel Velarde, Chairman of the NOW Group
“As the biggest trading sector operator in Finland and one of the biggest in Northern Europe, we are always working to stay competitive and bring our large and diverse customer bases more value. That is why we are partnering with TCS to continuously improve our quality, efficiency and the multichannel customer experience, while staying innovative and resilient amidst uncertainties in the operating environment.”
Arto Hiltunen, Chief Information Officer, Kesko
“With resilience at the core of our digital operating model, and TCS as our strategic technology partner, we’ve been able to transform our disaster recovery capabilities into a truly agile, automated and cloud-native setup. This not only enhances our readiness for unexpected infrastructure disruptions but also reinforces our commitment to uninterrupted service to our customers. I would like to thank and congratulate TCS for enabling this automated disaster recovery solution by leveraging their cloud expertise in the insurance domain.”
Girish Nayak, Chief – Technology and Health (Underwriting & Claims), ICICI Lombard
“We’ve spent the past year lowering costs, but this partnership allows us to go deeper. TCS will build on our current cost initiatives and unlock the capability and capacity to obtain more value from the technology investments we’ve made to date. The partnership is estimated to reduce costs in licenses and managed services by up to $40 million over five years and will help free up our technology teams to focus on what matters most, delivering more value for our customers, communities, and shareholders.”
Mark Stirton, Group Chief Executive Officer, The Warehouse Group
“ARN’s ambition is to be Australia’s leading All Audio company, focused on growing our audiences across every platform and device, driving innovation and delivering outstanding commercial performance. Our focus is on ensuring we can deliver on our ambitions by streamlining how we work and introducing smarter tools and systems. Our strategic partnership with TCS is a significant step towards building a leaner, more agile organisation that is investing in core activities of content creation, audience growth and digital capability.”
Ciaran Davis, Chief Executive Officer, ARN
“We’ve partnered with TCS for our digital transformation, enhancing our infrastructure in line with our EveryWhen rebranding. The adoption of Generative AI marks not just a technology upgrade, but signifies a cultural shift, enabling AI-driven operations powered by the Azure OpenAI platform. Collaborating with TCS, we aim to elevate intelligent automation and establish a unified ecosystem. Our vision is to create an AI-driven enterprise where HR, Finance, and other functions cohesively collaborate, enhancing operational resiliency while driving efficiency and delivering a superior experience for both employees and customers.”
Tom Clark – CTO, Ardonagh Advisory
Research and Innovation:
As on September 30, 2025, the company applied for 9,226 patents, including 239 applied during the quarter, and has been granted 5,086 patents including 147 granted during the quarter.
Key highlights during the quarter
Awards and Recognition:
Industry Analyst Assessments:
TCS was positioned the foremost Leader or ranked #1 in 7 competitive assessments published by leading research firms in Q2 FY26.
TCS was ranked a Leader in other 54 competitive assessments published by leading research firms in Q2 FY26.
| Analyst Firm | Firm Wise Report Type | Report Title |
| Gartner | Market Quadrant | Emerging Market Quadrant for Generative AI Consulting and Implementation Services* |
| Everest | PEAK Matrix | Financial Crime and Compliance (FCC) Operations Services PEAK Matrix® Assessment 2025* |
| NelsonHall | NEAT | Mortgage & Loan Services 2025* |
| Everest | PEAK Matrix | Digital Workplace Services PEAK Matrix® Assessment 2025 – Global* |
| TechMarketView | Ranking Report | UK Applications Operations Market: Suppliers, Trends & Forecasts 2025* |
| IDC | MarketScape | IDC MarketScape: India IT/Digital Transformation Services for Public Sector 2025 Vendor Assessment* |
| Everest | PEAK Matrix | Talent Readiness for Next-generation Cloud Services PEAK Matrix® Assessment 2025* |
IFRS Financial Statements
Consolidated Statements of Comprehensive Income
For the three-month periods ended Sep 30, 2024, June 30, 20ded Sep 30, 2024, June 30, 2025, and Sep 30, 2025
(In millions of $, except per share data)
|
Three-month period ended Sep 30, 2024 |
Three-month period ended June 30, 2025 |
Three-month period ended Sep 30, 2025 |
| Revenue | 7,670 | 7,421 | 7,466 |
| Cost of revenue | 4,741 | 4,517 | 4,512 |
| Gross margin | 2,929 | 2,904 | 2,954 |
| SG & A expenses | 1,083 | 1,089 | 1,075 |
| Operating income | 1,846 | 1,815 | 1,879 |
| Other income (expense), net | 68 | 172 | 73 |
| Income before income taxes | 1,914 | 1,987 | 1,952 |
| Income taxes | 487 | 487 | 482 |
| Income after income taxes | 1,427 | 1,500 | 1,470 |
| Non-controlling interests | 6 | 7 | 6 |
| Net income | 1,421 | 1,493 | 1,464 |
| Earnings per share in $ | 0.39 | 0.41 | 0.40 |
*Q2 FY26 excludes one off Re-structuring expenses of $129Mn
Consolidated Statements of Financial Position
As of March 31, 2025, and Sep 30, 2025
(In millions of $)
|
As of March 31, 2025 |
As of Sep 30, 2025 |
Assets |
||
Property and equipment |
1,514 |
1,530 |
Right-of-use Assets |
1,086 |
1,204 |
Intangible assets and Goodwill |
580 |
535 |
Accounts Receivable |
5,880 |
6,115 |
Unbilled Revenues |
1,811 |
1,873 |
Invested Funds |
5,526 |
6,301 |
Other current assets |
1,458 |
1,310 |
Other non-current assets |
1,076 |
1,104 |
Total Assets |
18,931 |
19,972 |
Liabilities and Shareholders' Equity |
||
Shareholders' Funds |
11,337 |
12,222 |
Current liabilities |
6,202 |
6,225 |
Non-current liabilities |
1,270 |
1,405 |
Non-controlling interests |
122 |
120 |
Total Liabilities |
18,931 |
19,972 |
Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS) is a digital transformation and technology partner of choice for industry-leading organizations worldwide. Since its inception in 1968, TCS has upheld the highest standards of innovation, engineering excellence and customer service.
Rooted in the heritage of the Tata Group, TCS is focused on creating long term value for its clients, its investors, its employees, and the community at large. With a highly skilled workforce spread across 55 countries and 202 service delivery centers across the world, the company has been recognized as a top employer in six continents. With the ability to rapidly apply and scale new technologies, the company has built long term partnerships with its clients – helping them emerge as perpetually adaptive enterprises. Many of these relationships have endured into decades and navigated every technology cycle, from mainframes in the 1970s to Artificial Intelligence today.
TCS sponsors 14 of the world’s most prestigious marathons and endurance events, including the TCS New York City Marathon, TCS London Marathon and TCS Sydney Marathon with a focus on promoting health, sustainability, and community empowerment.
TCS generated consolidated revenues of over US $30 billion in the fiscal year ended March 31, 2025. For more information, visit www.tcs.com