TCS Q2FY26 Results: Net Profit at ₹12,131 Crore; Announces ₹11 Interim Dividend

Mumbai, October 9, 2025 – Tata Consultancy Services Ltd (NSE: TCS | BSE: 532540) posted a consolidated net profit of ₹12,131 crore for the September 30, 2025 quarter (Q2FY26) compared to ₹11,955 crore for the same quarter last year. The Board of the company has also announced a second interim dividend of ₹11 per share.

Key Financial Highlights (₹ crore)

Tata Consultancy Services (TCS) delivered a consistent Q2FY26 growth, with operating revenue increasing to ₹65,799 crore, up 3.7% quarter-on-quarter and 2.4% year-on-year. On the total income front, the company saw ₹66,666 crore, a 2.6% sequential rise from Q2FY25.

The company’s EBITDA was ₹17,203 crore, up 7.3% year-on-year and 1.3% sequentially. Profit before tax (PBT) was at ₹16,068 crore, down 5.4% quarter-on-quarter but essentially flat year-on-year. Net profit was at ₹12,131 crore, up 1.5% sequentially from Q2FY25, although down 5.4% quarter-on-quarter.

Earnings per share (EPS) during the quarter were at ₹33.37, which was up 1.4% year-on-year but marked a 5.4% fall sequentially. TCS recorded restructuring expenses of ₹1,135 crore, which were recognized as an exceptional item in the quarter and impacted sequential profitability.

Segment Performance

During Q2FY26, TCS experienced varied performance across business segments. BFSI (Banking, Financial Services, and Insurance) was the growth leader, registering ₹25,717 crore, up 8.1% year over year growth. The Manufacturing segment accounted for ₹6,631 crore, growing by 5.1% compared to the prior year’s corresponding quarter.

The Consumer Business segment recorded revenue of ₹10,351 crore, up 3.3% year-on-year, and Life Sciences & Healthcare registered revenue of ₹6,884 crore, up 3.8%. The Communication, Media & Technology segment declined, with revenue of ₹9,802 crore, down 19% year-on-year, due to challenges in the segment.

Other segments collectively contributed ₹6,414 crore, demonstrating robust year-on-year growth of 18.3%, led by diversified business initiatives across non-core verticals. Overall, TCS continued to grow across BFSI and emerging industries, though it faced headwinds in the Communication, Media & Technology vertical.

The BFSI and Manufacturing segments remained strong contributors, while the Communication and Media vertical continued to experience weakness amid global spending moderation.

Balance Sheet Snapshot

As of September 30, 2025, the total assets were ₹1,75,219 crore, total equity was ₹1,07,461 crore, cash and cash equivalents were ₹9,122 crore, and total liabilities were ₹67,758 crore. As of March 31, 2025, the total assets were ₹1,59,629 crore, the total equity was ₹95,771 crore, cash and cash equivalents were ₹8,904 crore, and total liabilities were ₹63,858 crore.

Dividend and Record Date

The Board of TCS declared a second interim dividend of ₹11 per equity share on October 15, 2025, with payment on November 4, 2025.

Management Commentary

K. Krithivasan, Managing Director and CEO, said that the performance during the quarter indicated “continued client confidence in TCS’s technology and consulting abilities despite macroeconomic uncertainties.” He further said that the firm is implementing strategic restructuring measures to improve operating efficiency and align skills with changing demand.

About Tata Consultancy Services Ltd

Tata Consultancy Services Limited, a member of the Tata Group, is a Mumbai-headquartered global IT services, consulting, and business solutions firm listed on both NSE and BSE, and one of India’s most valued corporations. TCS regularly rewards shareholders in the form of dividends, with a high payout ratio, having a record of interim and final payouts within every fiscal year.

REF: https://nsearchives.nseindia.com/corporate/TCS_CORPCS_09102025154951_PostBMSELetter.pdf

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations