TCS Q2 Results: Cons PAT Misses Estimates To Rs 12,075 Crore, Up By 1.4% YoY; Revenue, EBIT Margins Upbeat

Tata Consultancy Services, India's largest tech company, reported a mixed Q2 earnings for FY26. The Tata Group's powerhouse missed estimates in consolidated net profit to Rs 12,075 crore, reporting growth of 1.4% year-on-year. PAT declined by 5.4% from Rs 12,760 crore seen in Q1FY25. However, its top-line front and operating profit including margins surpassed estimates.

Consolidated revenue stood at Rs 65,799 crore, registering a growth of 3.7% QoQ which earlier expected to be flat due to uncertain macro conditions. Sequential growth in constant currency stood at 0.8%. Also, international revenue growth came in at 0.6% QoQ in constant currency.

EBIT margins expanded by 70 basis points to 25.2%, which was better than expected. Its EBIT stood at Rs 16,565 crore in the quarter under review, also better than estimates.

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."

He added, "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."

Also, 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."

Notably, TCS broad-based growth across verticals was driven by continued momentum in BFSI (+1.1% QoQ CC), and TSS (+1.8% QoQ CC). Also, Life Sciences and Healthcare (+3.4% QoQ CC), Manufacturing (+1.6% QoQ CC) and CMI (+0.8% QoQ CC) deliver growth amidst industry specific challenges.