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

Tata Elxsi reported a net profit of Rs 154.82 crore for the second quarter of the financial year 2026. This marls a 32.5% YoY drop from the Rs 229.43 crore reported in Q2 FY25. The firm's revenue from operations meanwhile fell nearly 4% YoY to Rs 918.10 crore during the quarter under review.

Tata Consultancy Services (TCS) on October 9 announced that it is acquiring US-based ListEngage MidCo, along with its subsidiary of ListEngage LLC, which provide digital marketing services through Salesforce platforms like marketing cloud, data cloud and Agentforce and AI advisory services.

TCS will acquire the US-based company for up to $72.8 million, excluding management incentives and costs. The acquisition is expected to be completed by October 10. (Read more)

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 net profit to Rs 12,075 crore, according to the company’s exchange filing on October 9.

The Rs 1,135 crore charge comes two months after CEO K Krithivasan told Moneycontrol 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. (Read more)

"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," said Aarthi Subramanian, Executive Director - President and Chief Operating Officer of TCS.

TCS announced strategic investment to build world class AI infrastructure - 1 GW capacity AI datacenter in India. Its board has also approved the acquisition of ListEngage with deep capabilities in Salesforce. It also sustained investments in nurturing AI-first culture and talent - World’s largest ‘Ideate and Build with AI’ Hackathon with 275,000 TCSers, it 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," said TCS CFO Samir Seksaria.

North America constituted 47.6% of TCS's revenue in Q2, lower 0.1% in YoY CC terms. It still remain the biggest revenue contributor for the IT firm. See how TCS' different markets contributed to its revenue during the quarter:

“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," said K Krithivasan, Chief Executive Officer and Managing Director, TCS.

TCS has announced a second interim dividend of Rs 11 per share. The record date to determine the eligibility of shareholders set to receive the payment has been set at October 15.

TCS reported a net profit of Rs 12,075 crore for Q2 FY26. This marks a 1.4% YoY rise from the Rs 11,909 crore net profit reported in Q2 FY25. Notably, this is lower than 6% growth estimated by LSEG.

Revenue from operations meanwhile grew around 2% YoY to Rs 65,799 crore in Q2 FY26, from Rs 64,259 crore in Q2 FY25.

TCS announced that it has cancelled the press conference which was scheduled for 5.30 pm today.

The management will skip the customary press conference - initially scheduled for 5:30 pm - as the date coincides with the death anniversary of Ratan Tata, according to a Hindu Businessline news report, citing sources. However, the analyst call will be held as planned on October 9, the report added. Last year too, after Ratan Tata's demise, TCS had cancelled its September quarter press briefing after the earnings.

TCS is currently in the midst of its biggest workforce restructuring, as it plans to trim headcount by 2 percent in FY26. The job cuts have been based on skill redundancies and inability to redeploy certain levels of associates.

All eyes will be on the updates pertaining to these layoffs and how they are showing up in the company’s attrition rate in Q2 and beyond. TCS is also offering severance packages to the impacted employees which could lead to cost increases. (Read more)

Infosys announced that it will release its July-September quarter earnings on October 16

TCS had earlier said that it has reduced its dependency on US’ H-1B visas to less than 50 percent for offshoring talent in North America over the years, though the company still accounts for a significant share of H-1Bs granted to top tier IT firms.

The recent proposed changes on H-1B visa application and a fee hike, bring the focus back on how TCS plans to tackle the tightening visa regime and what would be the impact on margins if they ought to hire more locally. North America contributes nearly 50 percent to TCS’ revenue.

Brokerage notes have estimated TCS’ operating margins to either remain flat at 24.5 percent or decline by around 20 bps sequentially. This will be driven by the wage hikes rolled out in Q2FY26, higher investments, restructuring costs and lower utilisation, analysts have said.

“We believe pyramid and productivity gains remain key levers, but pricing pressure, client behavior, and the GenAI transition signal a start of realignment as vendors adapt pricing and delivery models,” analysts at MOFSL said in a recent note. The management’s commentary on operating margins for the second half of the year will be crucial as the company navigates through larger job cuts and projects such as BSNL begin to ramp up.

TCS has reported strong deal wins in September quarter, including the $640 million contract with the Scandinavian non-life insurance company Tryg. Analysts believe there have been some green shoots in discretionary tech spending in BFSI and Technology verticals, while Manufacturing, Automotive, Communications and Retail have remained weak.

“Clients remain cautious, leading to longer decision-making times. The focus is on ramping up recently signed deals which are mostly cost optimization/vendor consolidation in nature. The adoption of AI tools is expected to drive revenue per employee thus supporting overall productivity,” analysts at Centrum said.

TCS’ commentary on demand outlook will drive the sector’s narrative forward, as it has the largest order book among the top five Indian IT firms. The IT sector has been grappling with macroeconomic uncertainties, with Trump tariffs eclipsing tech budgets of US clients.

The shares of GM Breweries rallied nearly 17% to hit a fresh 52-week high of Rs 893.50 apiece. This comes after the company reported a net profit of Rs 34.89 crore for Q2 FY26, marking a 61% YoY rise from the Rs 21.67 crore net profit reported in Q2 FY25. The firm's revenue from operations meanwhile grew 20.5% YoY to Rs 717.85 crore during the quarter under review.

No surprises or fireworks are expected from TCS in Q2FY26, as brokerages estimate revenue growth of around 0.2-1 percent sequentially in constant currency terms, driven by international business growth of approximately one percent while India business seen as flat.

“We expect cc revenue growth of 1.0% QoQ led by BFSI and Hitech verticals, supported by low base of Q1FY26,” Centrum analysts said in its preview note.

Analysts at Axis Direct said the overall IT sector will see “stronger growth recovery in H2FY26 compared to H1FY26, supported by a more stable environment, deal ramp ups, improved utilisation, and better project execution.”

TCS’ expanded project announced with BSNL in May is likely to ramp up from Q3 onwards, analysts at Motilal Oswal Financial Services (MOFSL) said.

The September quarter has been double whammy for Indian IT, with the industry swaying between weak global demand amid pressures of US President Trump’s tariffs on industries, and most-recently the proclamation on H-1B visa applications.  As India’s largest software exporter Tata Consultancy Services (TCS) gets ready to set to tone for the Q2 earnings season on October 9, along with its second interim dividend for FY26, here are the five key factors to watch out for.

•  IT Revenue Growth
• Demand Outlook
• Wage Hikes, Margin Impact
• H-1B Visa Commentary
• Layoffs, Impact on Attrition

The shares of TCS were trading in green with marginal gains ahead of the firm's announcement of July-September results. The shares of the company were up 0.29% to trade at Rs 3,036 apiece.

In an exchange filing, TCS had announced that its management will consider and approve a second interim dividend for its equity shareholders. The record date for the prospective dividend has been set on October 15. This means that investors must hold the shares of the company as on the record date to be eligible for the dividend payment, if declared.

In an exchange filing released on September 23, Tata Consultancy Services (TCS) had announced that it will release the results for the second quarter of the financial year 2026 in the post market hours of October 9. It added that its key executives will address media personnel during a press conference at 5.30 pm. However, media reports later claimed this press conference will not be conducted today.

The earnings conference call will be held at 7 pm, as per the schedule released by the company in September.