India’s largest IT giant Tata Consultancy Services (TCS) said none of its systems were compromised in the cyberattacks faced by its three major UK-based customers Jaguar Land Rover (JLR), Co-op and Marks &amp; Spencer. These incidents happened in less than a year.

The most <a href="https://www.moneycontrol.com/news/business/information-technology/why-jaguar-land-rover-cyberattack-puts-tata-consultancy-services-under-renewed-scrutiny-13583136.html" target="_blank">recent case</a> was of another Tata Group company and UK’s biggest automotive firm Jaguar Land Rover in September.

Speaking at TCS’ Q2 earnings conference call on October 9, Aarthi Subramanian, Executive Director - President &amp; Chief Operating Officer, TCS, clarified that the breach, which forced JLR to shut down parts of its IT infrastructure and production facilities for weeks, was not due to TCS.

“These threats are getting more and more sophisticated. We are working closely with our customers to safeguard their interests. Recent incidents saw some of our TCS clients becoming victims to these cyberattacks, resulting in disruptions to their businesses. I would like to clarify that there has been no compromise of TCS systems,” She said.

Subramanian added, “There was not any impact to other customers of TCS in these incidents. The investigations for these incidents are being managed by the customers respectively. TCS is playing a significant role in supporting the customers in their recovery efforts. These efforts have been positively acknowledged by our customers.”

<a href="https://www.moneycontrol.com/news/business/earnings/tcs-q2-results-net-profit-up-1-4-on-year-at-rs-12-075-crore-falls-short-of-street-estimates-13607120.html" target="_blank">TCS reported its Q2 earnings</a> on October 9. Net profit rose 1.4 percent year-on-year at Rs 12,075 crore for the quarter ended September 30. The net profit was slightly lower than the Street estimates as the company accounted for a Rs 1,135 crores restructuring expense, likely driven by the ongoing layoffs that will impact over 12,000 jobs at TCS.

TCS' revenue for the quarter stood at Rs 65,799 crore, marking a 3.7 percent sequential rise and 0.8 percent growth in constant currency terms.

Operating margin expanded by 70 basis points QoQ to 25.2 percent.

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No compromise of TCS systems in recent cyberattacks on clients, says COO

India’s largest IT giant Tata Consultancy Services (TCS) said none of its systems were compromised in the cyberattacks faced by its three major UK-based customers Jaguar Land Rover (JLR), Co-op and Marks &amp;amp; Spencer. These incidents happened in less than a year.

The most recent case was of another Tata Group company and UK’s biggest automotive firm Jaguar Land Rover in September.

Speaking at TCS’ Q2 earnings conference call on October 9, Aarthi Subramanian, Executive Director - President &amp;amp; Chief Operating Officer, TCS, clarified that the breach, which forced JLR to shut down parts of its IT infrastructure and production facilities for weeks, was not due to TCS.

“These threats are getting more and more sophisticated. We are working closely with our customers to safeguard their interests. Recent incidents saw some of our TCS clients becoming victims to these cyberattacks, resulting in disruptions to their businesses. I would like to clarify that there has been no compromise of TCS systems,” She said.

Subramanian added, “There was not any impact to other customers of TCS in these incidents. The investigations for these incidents are being managed by the customers respectively. TCS is playing a significant role in supporting the customers in their recovery efforts. These efforts have been positively acknowledged by our customers.”

TCS reported its Q2 earnings on October 9. Net profit rose 1.4 percent year-on-year at Rs 12,075 crore for the quarter ended September 30. The net profit was slightly lower than the Street estimates as the company accounted for a Rs 1,135 crores restructuring expense, likely driven by the ongoing layoffs that will impact over 12,000 jobs at TCS.

TCS' revenue for the quarter stood at Rs 65,799 crore, marking a 3.7 percent sequential rise and 0.8 percent growth in constant currency terms.

Operating margin expanded by 70 basis points QoQ to 25.2 percent.

Tata Consultancy Services (TCS) gave a glimpse of its roadmap to become the "world’s largest AI-led technology services company” during its Q2FY26 investor call on October 9, as it announced plans to build 1 Giga Watt (GW) in data center capacity in India.

While addressing analysts on a call, K Krithivasan, Chief Executive Officer, TCS, gave a tally of approximately $6-7 billion to be invested into building 1 GW of data center capacity over the next five to seven years.

“Our calculation, is that for every 150 megawatt (MW) of computing power, we would require about a billion dollars,” Krithivasan said.

He further said the project, which is close to India’s overall Data Centre capacity, will be developed in phases, with funding structured as a mix of equity and debt.

TCS creates a new subsidiary

TCS’ AI infrastructure ambitions will be led by a <a href="https://www.moneycontrol.com/news/business/earnings/tcs-to-launch-a-new-entity-to-establish-multiple-ai-and-sovereign-data-centers-in-india-13607611.html" target="_blank">new wholly-owned subsidiary</a>. The IT major plans to establish “multiple AI and Sovereign Data Centers for providing Infrastructure and technology-enabled Services.”

Samir Seksaria, CFO, TCS, shared that the data center business will have a separate management, but it will have adjacencies and partnerships with TCS.

“It would take about 18 to 24 months for the first revenues to kick in for this new subsidiary,” Seksaria said.

Where will TCS host data?

TCS clarified that the sovereign AI data-centre will host all data and compute within India, catering to hyperscalers, deep-tech firms, government entities, and Indian enterprises. “It’s going to be established in data-centres across India, and all the data and compute will be hosted in India and not leave the shores of the country,” Krithivasan added.

He added that most of this would be “passive data center” capacity as users would mostly be hyperscalers and deep tech firms, who want to train and inference models in Indian interfaces.

A passive data center operates as a standby data center in case the primary or the active data centers of customers falter.

Which IT companies have announced data Centers

India’s largest IT firm is the second in the sector to announce an investment in the data center space, with mid-tier firm <a href="https://www.moneycontrol.com/news/business/information-technology/ai-is-infra-now-coforge-builds-full-stack-capability-for-real-world-deployments-13323657.html" target="_blank">Coforge revealing the plan</a> last quarter.

“AI net projects are not just Gen AI-led, they need infrastructure, data foundation remediation, and business and process operations technology,” CEO Sudhir Singh told Moneycontrol in a post-earnings interaction in July.

However, the Street did not take this positively, and Coforge shares tanked over 9 percent a day after the results, as investors reacted to a combination of factors, including a spurt in capital expenditure.

Why is TCS setting up a data center

The company said the move to enter AI infrastructure is a strategic move, complementing its partnerships with hyperscalers and deep-tech companies.

“Currently, India has only about 1.2 GW of data-centre capacity, and demand is expected to grow almost tenfold in the next five to six years,” Krithivasan said.

Adding that the planned rollout would help address unmet compute demand in India.

The Mumbai-headquartered firm maintains that it has a healthy balance sheet and cash flow to fund these long-term initiatives while returning its committed cash flow to investors.

“This will give us coverage across the entire AI stack, from infra layer to apps,” said Aarthi Subramanian, COO, TCS.

The company also said the data-center project is part of its broader ambition to become the world’s largest AI-led technology services company.

Apart from the new facility, the company is investing in quantum computing and ecosystem partnerships to build India’s next-generation compute backbone.

AI business unit within TCS

In August, TCS had announced that it is integrating all its existing teams and capabilities in AI to create a new <a href="https://www.moneycontrol.com/news/business/information-technology/tcs-creates-new-ai-and-services-transformation-unit-appoints-amit-kapur-as-head-13491261.html" target="_blank">AI and Services Transformation unit</a>.

TCS veteran Amit Kapur was appointed to lead this unit globally as Chief Al and Services Transformation Officer, effective September 1, and will report to Aarthi Subramanian, Executive Director - President &amp; Chief Operating Officer, TCS.

TCS to invest $6-7 billion into building data centers; first revenues 18–24 months after start

Tata Consultancy Services (TCS) gave a glimpse of its roadmap to become the &quot;world’s largest AI-led technology services company” during its Q2FY26 investor call on October 9, as it announced plans to build 1 Giga Watt (GW) in data center capacity in India.

While addressing analysts on a call, K Krithivasan, Chief Executive Officer, TCS, gave a tally of approximately $6-7 billion to be invested into building 1 GW of data center capacity over the next five to seven years.

“Our calculation, is that for every 150 megawatt (MW) of computing power, we would require about a billion dollars,” Krithivasan said.

He further said the project, which is close to India’s overall Data Centre capacity, will be developed in phases, with funding structured as a mix of equity and debt.

TCS creates a new subsidiary

TCS’ AI infrastructure ambitions will be led by a new wholly-owned subsidiary. The IT major plans to establish “multiple AI and Sovereign Data Centers for providing Infrastructure and technology-enabled Services.”

Samir Seksaria, CFO, TCS, shared that the data center business will have a separate management, but it will have adjacencies and partnerships with TCS.

“It would take about 18 to 24 months for the first revenues to kick in for this new subsidiary,” Seksaria said.

Where will TCS host data?

TCS clarified that the sovereign AI data-centre will host all data and compute within India, catering to hyperscalers, deep-tech firms, government entities, and Indian enterprises. “It’s going to be established in data-centres across India, and all the data and compute will be hosted in India and not leave the shores of the country,” Krithivasan added.

He added that most of this would be “passive data center” capacity as users would mostly be hyperscalers and deep tech firms, who want to train and inference models in Indian interfaces.

A passive data center operates as a standby data center in case the primary or the active data centers of customers falter.

Which IT companies have announced data Centers

India’s largest IT firm is the second in the sector to announce an investment in the data center space, with mid-tier firm Coforge revealing the plan last quarter.

“AI net projects are not just Gen AI-led, they need infrastructure, data foundation remediation, and business and process operations technology,” CEO Sudhir Singh told Moneycontrol in a post-earnings interaction in July.

However, the Street did not take this positively, and Coforge shares tanked over 9 percent a day after the results, as investors reacted to a combination of factors, including a spurt in capital expenditure.

Why is TCS setting up a data center

The company said the move to enter AI infrastructure is a strategic move, complementing its partnerships with hyperscalers and deep-tech companies.

“Currently, India has only about 1.2 GW of data-centre capacity, and demand is expected to grow almost tenfold in the next five to six years,” Krithivasan said.

Adding that the planned rollout would help address unmet compute demand in India.

The Mumbai-headquartered firm maintains that it has a healthy balance sheet and cash flow to fund these long-term initiatives while returning its committed cash flow to investors.

“This will give us coverage across the entire AI stack, from infra layer to apps,” said Aarthi Subramanian, COO, TCS.

The company also said the data-center project is part of its broader ambition to become the world’s largest AI-led technology services company.

Apart from the new facility, the company is investing in quantum computing and ecosystem partnerships to build India’s next-generation compute backbone.

AI business unit within TCS

In August, TCS had announced that it is integrating all its existing teams and capabilities in AI to create a new AI and Services Transformation unit.

TCS veteran Amit Kapur was appointed to lead this unit globally as Chief Al and Services Transformation Officer, effective September 1, and will report to Aarthi Subramanian, Executive Director - President &amp;amp; Chief Operating Officer, TCS.

India’s largest software exporter Tata Consultancy Services (TCS) is doubling down its investment as it ventures into building artificial intelligence (AI) infrastructure.

The IT major plans to establish “multiple AI and Sovereign Data Centers for providing Infrastructure and Technology enabled Services,” it said in a stock exchange filing.

Creation of a new entity

For this, TCS’ board has approved incorporation of a wholly owned subsidiary in India.

TCS said that the new business entity is working on building world class AI infrastructure that includes 1 GW capacity AI datacenter in India.

“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,” TCS CEO and MD K Krithivasan said.

TCS' new AI business unit

In an <a href="https://www.moneycontrol.com/news/business/information-technology/tcs-creates-new-ai-and-services-transformation-unit-appoints-amit-kapur-as-head-13491261.html" target="_blank">internal memo to employees</a> in August, TCS had announced that it is integrating all its existing teams and capabilities in AI to create a new AI and Services Transformation unit.

TCS veteran Amit Kapur was appointed to lead this unit globally as Chief Al and Services Transformation Officer, effective September 1, and will report to Aarthi Subramanian, Executive Director - President &amp; Chief Operating Officer, TCS.

Following the lastest announcement on October 10, Subramanian, 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.”

In an attempt to nurture AI-first culture and talent – TCS conducted ‘Ideate and Build with AI’ Hackathon with 275,000 TCSers.

TCS to launch a new entity to establish multiple AI and Sovereign Data Centers in India

India’s largest software exporter Tata Consultancy Services (TCS) is doubling down its investment as it ventures into building artificial intelligence (AI) infrastructure.

The IT major plans to establish “multiple AI and Sovereign Data Centers for providing Infrastructure and Technology enabled Services,” it said in a stock exchange filing.

Creation of a new entity

For this, TCS’ board has approved incorporation of a wholly owned subsidiary in India.

TCS said that the new business entity is working on building world class AI infrastructure that includes 1 GW capacity AI datacenter in India.

“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,” TCS CEO and MD K Krithivasan said.

TCS' new AI business unit

In an internal memo to employees in August, TCS had announced that it is integrating all its existing teams and capabilities in AI to create a new AI and Services Transformation unit.

TCS veteran Amit Kapur was appointed to lead this unit globally as Chief Al and Services Transformation Officer, effective September 1, and will report to Aarthi Subramanian, Executive Director - President &amp;amp; Chief Operating Officer, TCS.

Following the lastest announcement on October 10, Subramanian, 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.”

In an attempt to nurture AI-first culture and talent – TCS conducted ‘Ideate and Build with AI’ Hackathon with 275,000 TCSers.

India’s largest IT services company, Tata Consultancy Services (TCS), saw its headcount decline by 19,755 on a net basis in the second quarter of FY26, a period when the company announced plans to let go of about 2 percent of its workforce, or roughly 12,000 employees.

With the latest increase, TCS now employs 6,13,069 people, the company said on October 9 in its earnings release.

The Tata group company had added 5,090 employees sequentially in the June period.

Consequently, the Mumbai-headquartered IT firm recorded <a href="https://www.moneycontrol.com/news/business/information-technology/tcs-takes-rs-1-135-crore-hit-on-layoffs-restructuring-in-q2fy26-13607421.html">restructuring expenses worth of Rs 1,135 crore</a> in the September quarter as it moved ahead with its plan to trim its workforce and realign roles across the organisation.

Naturally, the headcount was down even in a quarter when attrition fell to 13.3 percent, from the previous quarter’s 13.8 percent.

The exceptional item dragged the company’s reported consolidated <a href="https://www.moneycontrol.com/news/business/earnings/tcs-q2-results-net-profit-up-1-4-on-year-at-rs-12-075-crore-falls-short-of-street-estimates-13607120.html">net profit to Rs 12,075 crore</a>, according to the company’s exchange filing on October 9.

Nevertheless, the company said its employees have, year-to-date, clocked in over 3.3 crore hours in learning, over 26 lakh competencies acquired, and almost 1.6 lakh employees are now proficient in artificial intelligence/machine learning (AI/ML).

Meanwhile, the company's net profit was slightly below Street estimates. A CNBC-TV18 poll had pegged the IT major’s profit at Rs 12,528.3 crore and revenue at Rs 65,114 crore. TCS' revenue for the quarter stood at Rs 65,799 crore, marking a 3.7 percent sequential rise and 0.8 percent growth in constant currency terms.

Operating margin expanded by 70 basis points to 25.2 percent, while net margin improved to 19.6 percent.

The Mumbai-based firm’s headcount fell for the first time in 19 years in FY24, marking a shift since the company listed on the bourses in 2004. The IT behemoth had added 22,600 employees in FY23.

The reversal is even steeper if one were to look at FY22 numbers, when it added a whopping net 1.03 lakh employees.

“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," the incoming Chief Human Resources Officer, K Sudeep, was quoted as saying in the release.

TCS headcount falls over 19,700 in Q2FY26 amid restructuring, layoffs

TCS Q2 Results: Headcount down over 19,700 in Q2FY26

India’s largest IT services company, Tata Consultancy Services (TCS), saw its headcount decline by 19,755 on a net basis in the second quarter of FY26, a period when the company announced plans to let go of about 2 percent of its workforce, or roughly 12,000 employees.

With the latest increase, TCS now employs 6,13,069 people, the company said on October 9 in its earnings release.

The Tata group company had added 5,090 employees sequentially in the June period.

Consequently, the Mumbai-headquartered IT firm recorded restructuring expenses worth of Rs 1,135 crore in the September quarter as it moved ahead with its plan to trim its workforce and realign roles across the organisation.

Naturally, the headcount was down even in a quarter when attrition fell to 13.3 percent, from the previous quarter’s 13.8 percent.

The exceptional item dragged the company’s reported consolidated net profit to Rs 12,075 crore, according to the company’s exchange filing on October 9.

Nevertheless, the company said its employees have, year-to-date, clocked in over 3.3 crore hours in learning, over 26 lakh competencies acquired, and almost 1.6 lakh employees are now proficient in artificial intelligence/machine learning (AI/ML).

Meanwhile, the company's net profit was slightly below Street estimates. A CNBC-TV18 poll had pegged the IT major’s profit at Rs 12,528.3 crore and revenue at Rs 65,114 crore. TCS' revenue for the quarter stood at Rs 65,799 crore, marking a 3.7 percent sequential rise and 0.8 percent growth in constant currency terms.

Operating margin expanded by 70 basis points to 25.2 percent, while net margin improved to 19.6 percent.

The Mumbai-based firm’s headcount fell for the first time in 19 years in FY24, marking a shift since the company listed on the bourses in 2004. The IT behemoth had added 22,600 employees in FY23.

The reversal is even steeper if one were to look at FY22 numbers, when it added a whopping net 1.03 lakh employees.

“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,&quot; the incoming Chief Human Resources Officer, K Sudeep, was quoted as saying in the release.

India’s largest IT services company Tata Consultancy Services (TCS) on October 9 reported $10 billion in total contract value (TCV) for the quarter ended September 30, driven by a $640-million mega deal from Scandinavian non-life insurance company Tryg.

The company reported broad-based positive sequential growth in constant currency (CC) in banking, financial services and insurance (BFSI) at 1.1 percent, technology &amp; services was up by 1.8 percent.

Meanwhile, Life Sciences and Healthcare grew by 3.4 percent, manufacturing grew 1.6 percent sequentially in CC, Communications, Media, and Information services (CMI) grew by 0.8 percent despite industry specific challenges amid macroeconomic uncertainties due to US trade tariffs.

Consumer business and regional markets dregrew by 1 percent and 1.1 percent QoQ respectively.

The TCV for the quarter was 16.28 percent higher than the $8.6 billion reported in the year-ago period and was up almost 6.38 percent from the previous quarter.

K Krithivasan, Chief Executive Officer and Managing Director, TCS 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,” he added.

Some of the key deal wins this quarter include the seven-year contract with Tryg, IT transformation and cloud migration deal with pharma company Unilab, multi-year partnership with Australia’s ARN Media, a digital transformation partnership with New Zealand’s largest retailing group The Warehouse Group.

<a href="https://www.moneycontrol.com/news/business/earnings/tcs-q2-results-net-profit-up-1-4-on-year-at-rs-12-075-crore-falls-short-of-street-estimates-13607120.html" target="_blank">TCS reported its Q2 earnings</a> on October 9. Net profit rose 1.4 percent year-on-year at Rs 12,075 crore for the quarter ended September 30. The net profit was slightly lower than the Street estimates as the company accounted for a Rs 1,135 crores restructuring expense, likely driven by the ongoing layoffs that will impact over 12,000 jobs at TCS.

TCS' revenue for the quarter stood at Rs 65,799 crore, marking a 3.7 percent sequential rise and 0.8 percent growth in constant currency terms.

Operating margin expanded by 70 basis points QoQ to 25.2 percent.

TCS posts broad-based growth in Q2, order book grows 16.2% YoY to $10 billion

India’s largest IT services company Tata Consultancy Services (TCS) on October 9 reported $10 billion in total contract value (TCV) for the quarter ended September 30, driven by a $640-million mega deal from Scandinavian non-life insurance company Tryg.

The company reported broad-based positive sequential growth in constant currency (CC) in banking, financial services and insurance (BFSI) at 1.1 percent, technology &amp;amp; services was up by 1.8 percent.

Meanwhile, Life Sciences and Healthcare grew by 3.4 percent, manufacturing grew 1.6 percent sequentially in CC, Communications, Media, and Information services (CMI) grew by 0.8 percent despite industry specific challenges amid macroeconomic uncertainties due to US trade tariffs.

Consumer business and regional markets dregrew by 1 percent and 1.1 percent QoQ respectively.

The TCV for the quarter was 16.28 percent higher than the $8.6 billion reported in the year-ago period and was up almost 6.38 percent from the previous quarter.

K Krithivasan, Chief Executive Officer and Managing Director, TCS 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,” he added.

Some of the key deal wins this quarter include the seven-year contract with Tryg, IT transformation and cloud migration deal with pharma company Unilab, multi-year partnership with Australia’s ARN Media, a digital transformation partnership with New Zealand’s largest retailing group The Warehouse Group.

TCS reported its Q2 earnings on October 9. Net profit rose 1.4 percent year-on-year at Rs 12,075 crore for the quarter ended September 30. The net profit was slightly lower than the Street estimates as the company accounted for a Rs 1,135 crores restructuring expense, likely driven by the ongoing layoffs that will impact over 12,000 jobs at TCS.

TCS' revenue for the quarter stood at Rs 65,799 crore, marking a 3.7 percent sequential rise and 0.8 percent growth in constant currency terms.

Operating margin expanded by 70 basis points QoQ to 25.2 percent.

India’s largest information technology (IT) firm, Tata Consultancy Services (TCS), recorded a one-time restructuring expense of Rs 1,135 crore in the September quarter (Q2FY26) as it moved ahead with its plan to trim its workforce and realign roles across the organisation.

The exceptional item, classified under restructuring expenses, dragged the company’s reported consolidated <a href="https://www.moneycontrol.com/news/business/earnings/tcs-q2-results-net-profit-up-1-4-on-year-at-rs-12-075-crore-falls-short-of-street-estimates-13607120.html">net profit to Rs 12,075 crore</a>, according to the company’s exchange filing on October 9.

The Mumbai-headquartered firm’s revenue for the quarter stood at Rs 65,799 crore, marking a 3.7 percent sequential rise and 0.8 percent growth in constant currency terms. This was slightly below Street estimates.

A CNBC-TV18 poll had pegged the IT major’s profit at Rs 12,528.3 crore and revenue at Rs 65,114 crore.

Layoffs ripple across ranks

The Rs 1,135 crore charge comes two months after CEO <a href="https://www.moneycontrol.com/news/business/tcs-to-cut-2-of-workforce-affecting-12-000-employees-amid-skill-gap-and-tech-shift-13333687.html">K Krithivasan told Moneycontrol</a> exclusively that TCS would cut 2 percent of its workforce, around 12,000 employees, during the fiscal year as part of a phased restructuring targeting mid- and senior-level roles.

But inside the company, panic and uncertainty have spread. Employees and IT unions claim the actual number of exits is far higher, alleging that many are being asked to resign <a href="https://www.moneycontrol.com/news/business/information-technology/tcs-layoffs-leave-employees-facing-uncertainty-and-anxiety-13587931.html">voluntarily to keep official layoff numbers low.</a>

However, over the past few months, unions including the All India IT &amp; ITeS Employees’ Union (AIITEU), Forum for IT Employees (FITE), and Union of IT &amp; ITES Employees (UNITE) have held protests and campaigns against what they call “forced resignations” and “coerced exits.”

A source close to the company dismissed these claims, calling them “incorrect and misleading.”
“As communicated earlier, the impact is limited to 2 percent of our workforce,” a TCS spokesperson said.

This is a developing story, please come back for more

TCS takes Rs 1,135-crore hit on layoffs, restructuring in Q2FY26

TCS Layoffs: TCS takes Rs 1,135 crore hit on layoffs, restructuring in Q2FY26

India’s largest information technology (IT) firm, Tata Consultancy Services (TCS), recorded a one-time restructuring expense of Rs 1,135 crore in the September quarter (Q2FY26) as it moved ahead with its plan to trim its workforce and realign roles across the organisation.

The exceptional item, classified under restructuring expenses, dragged the company’s reported consolidated <a href="https://www.moneycontrol.com/news/business/earnings/tcs-q2-results-net-profit-up-1-4-on-year-at-rs-12-075-crore-falls-short-of-street-estimates-13607120.html">net profit to Rs 12,075 crore</a>, according to the company’s exchange filing on October 9.

The Mumbai-headquartered firm’s revenue for the quarter stood at Rs 65,799 crore, marking a 3.7 percent sequential rise and 0.8 percent growth in constant currency terms. This was slightly below Street estimates.

A CNBC-TV18 poll had pegged the IT major’s profit at Rs 12,528.3 crore and revenue at Rs 65,114 crore.

Layoffs ripple across ranks

The Rs 1,135 crore charge comes two months after CEO <a href="https://www.moneycontrol.com/news/business/tcs-to-cut-2-of-workforce-affecting-12-000-employees-amid-skill-gap-and-tech-shift-13333687.html">K Krithivasan told Moneycontrol</a> exclusively that TCS would cut 2 percent of its workforce, around 12,000 employees, during the fiscal year as part of a phased restructuring targeting mid- and senior-level roles.

But inside the company, panic and uncertainty have spread. Employees and IT unions claim the actual number of exits is far higher, alleging that many are being asked to resign <a href="https://www.moneycontrol.com/news/business/information-technology/tcs-layoffs-leave-employees-facing-uncertainty-and-anxiety-13587931.html">voluntarily to keep official layoff numbers low.</a>

However, over the past few months, unions including the All India IT &amp; ITeS Employees’ Union (AIITEU), Forum for IT Employees (FITE), and Union of IT &amp; ITES Employees (UNITE) have held protests and campaigns against what they call “forced resignations” and “coerced exits.”

A source close to the company dismissed these claims, calling them “incorrect and misleading.”
“As communicated earlier, the impact is limited to 2 percent of our workforce,” a TCS spokesperson said.

This is a developing story, please come back for more

Tata Consultancy Services (TCS) reported a 1.4 percent year-on-year rise in consolidated net profit to Rs 12,075 crore for the quarter ended September 30, 2025, slightly below Street estimates. A CNBC TV18 poll had pegged the IT major’s profit at Rs 12,528.3 crore and revenue at Rs 65,114 crore. <a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/tataconsultancyservices/TCS">TCS</a> declared a second interim dividend of Rs 11 per share, with October 15 as the record date and November 4 as the payment date.

Net profit was down sequentially as the company declared restructuring expenses of Rs 1,135 crores, driven by the ongoing job cuts that will <a href="https://www.moneycontrol.com/news/business/tcs-to-cut-2-of-workforce-affecting-12-000-employees-amid-skill-gap-and-tech-shift-13333687.html" target="_blank">impact over 12,000 employees</a>.

Revenue and margins

TCS' revenue for the quarter stood at Rs 65,799 crore, marking a 3.7 percent sequential rise and 0.8 percent growth in constant currency terms. Operating margin expanded by 70 basis points to 25.2 percent, while net margin improved to 19.6 percent. Net income as per the company’s consolidated statement was Rs 12,904 crore. Cash flow from operations stood at 110 percent of net income.
<h3>AI-led strategy and new initiatives</h3>
TCS said it is “setting course to become the world’s largest AI-led technology services company,” announcing a series of strategic investments, including a new business entity to build a 1 GW capacity AI datacentre in India and the acquisition of ListEngage, a Salesforce-focused firm.

CEO and MD K Krithivasan said, “we are on a journey to become the world’s largest AI-led technology services company,” adding that the AI infrastructure initiative reflected TCS’s long-term commitment. The company also launched what it called the world’s largest “Ideate and Build with AI” hackathon, involving 2.75 lakh employees, as part of its effort to embed an “AI-first” culture.
<h3>Segment and market performance</h3>
Growth was broad-based across verticals, led by life sciences and healthcare (up 3.4 percent QoQ in constant currency), BFSI (1.1 percent), and manufacturing (1.6 percent). Regional markets saw a slight decline.

In geographic terms, India was among the fastest-growing markets with 4 percent sequential growth. The Middle East and Africa grew ]5.9 percent, and Continental Europe was up 1.4 percent.
<h3>Key deals and partnerships</h3>
The company reported total contract value (TCV) of $10 billion for the quarter, with multiple large deals across sectors. Key wins included:
<ul>
	<li>A seven-year, $647 million partnership with Scandinavian insurer Tryg to simplify operations across Denmark, Sweden, and Norway.</li>
	<li>A multi-hundred-million-dollar contract with a leading global healthcare firm to drive AI and cloud-led transformation.</li>
	<li>Renewed long-term collaborations with ALDI South, Weatherford International, and The Warehouse Group for digital and AI-driven modernisation.</li>
	<li>New partnerships in Mexico, the Philippines, and Finland to support AI and cloud expansion.</li>
</ul>
Earlier today, TCS stock rose 1.14% ahead of the quarterly earnings to end at Rs 3,061.7 on NSE.

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Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

TCS Q2 net profit up 1.4% YoY at Rs 12,075 crore; IT co declares Rs 11 dividend, unveils giga AI plan

Tata Consultancy Services (TCS) reported a 1.4 percent year-on-year rise in consolidated net profit to Rs 12,075 crore for the quarter ended September 30, 2025, slightly below Street estimates. A CNBC TV18 poll had pegged the IT major’s profit at Rs 12,528.3 crore and revenue at Rs 65,114 crore. TCS declared a second interim dividend of Rs 11 per share, with October 15 as the record date and November 4 as the payment date.

Net profit was down sequentially as the company declared restructuring expenses of Rs 1,135 crores, driven by the ongoing job cuts that will impact over 12,000 employees.

Revenue and margins

TCS' revenue for the quarter stood at Rs 65,799 crore, marking a 3.7 percent sequential rise and 0.8 percent growth in constant currency terms. Operating margin expanded by 70 basis points to 25.2 percent, while net margin improved to 19.6 percent. Net income as per the company’s consolidated statement was Rs 12,904 crore. Cash flow from operations stood at 110 percent of net income.
AI-led strategy and new initiatives
TCS said it is “setting course to become the world’s largest AI-led technology services company,” announcing a series of strategic investments, including a new business entity to build a 1 GW capacity AI datacentre in India and the acquisition of ListEngage, a Salesforce-focused firm.

CEO and MD K Krithivasan said, “we are on a journey to become the world’s largest AI-led technology services company,” adding that the AI infrastructure initiative reflected TCS’s long-term commitment. The company also launched what it called the world’s largest “Ideate and Build with AI” hackathon, involving 2.75 lakh employees, as part of its effort to embed an “AI-first” culture.
Segment and market performance
Growth was broad-based across verticals, led by life sciences and healthcare (up 3.4 percent QoQ in constant currency), BFSI (1.1 percent), and manufacturing (1.6 percent). Regional markets saw a slight decline.

In geographic terms, India was among the fastest-growing markets with 4 percent sequential growth. The Middle East and Africa grew ]5.9 percent, and Continental Europe was up 1.4 percent.
Key deals and partnerships
The company reported total contract value (TCV) of $10 billion for the quarter, with multiple large deals across sectors. Key wins included:

	A seven-year, $647 million partnership with Scandinavian insurer Tryg to simplify operations across Denmark, Sweden, and Norway.
	A multi-hundred-million-dollar contract with a leading global healthcare firm to drive AI and cloud-led transformation.
	Renewed long-term collaborations with ALDI South, Weatherford International, and The Warehouse Group for digital and AI-driven modernisation.
	New partnerships in Mexico, the Philippines, and Finland to support AI and cloud expansion.

Earlier today, TCS stock rose 1.14% ahead of the quarterly earnings to end at Rs 3,061.7 on NSE.



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Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

TCS Q2 Results 2025: India's largest IT services exporter is set to release its results for the July-September quarter of the ongoing financial year 2026 today. It will kick off the earnings season for the IT pack, with the board likely to declare a second interim dividend for the financial year 2025–26.

According to reports, the management will skip the press conference - initially scheduled for 5:30 pm. Follow this LIVE blog for the latest updates, analysts expectations and more.

TCS Q2 Results: IT firm announces Rs 11 interim dividend, check record date

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TCS Q2 Results 2025: India's largest IT services exporter is set to release its results for the July-September quarter of the ongoing financial year 2026 today. It will kick off the earnings season for the IT pack, with the board likely to declare a second interim dividend for the financial year 2025–26.

According to reports, the management will skip the press conference - initially scheduled for 5:30 pm. Follow this LIVE blog for the latest updates, analysts expectations and more.

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