TCS profit up 1.4% in Q2, beats revenue estimates

Tata Consultancy Services (TCS), India's largest information technology (IT) services firm, beat revenue growth estimates for the second quarter of 2025-26 (Q2FY26), driven by growth in its international business and an uptick in demand from the banking and financial services sector, one of its largest verticals.

- SHIVANI SHINDE

In an increasingly uncertain environment, the company's management reiterated that based on client conversations and its Q2 performance, international revenue growth in FY26 will be stronger than in the previous financial year.

TCS reported net profit of ₹12,075 crore for Q2FY26, up 1.4 per cent compared to ₹11,909 crore in the same quarter of FY25.

The company's revenue grew 2.4 per cent in reported terms at ₹65,799 crore for Q2FY26. Sequentially the same was up by 3.7 per cent.

TCS' performance compared to Bloomberg estimates was a beat on revenue growth, but miss on net profit.

According to Bloomberg estimates, revenue was expected at ₹65,267 crore, and net profit at ₹12,559 crore.

The order book TCV (total contract value) for Q2FY26 was at $10 billion. In Q1FY26, it was at $9.4 billion. TCV was up 20 per cent Y-o-Y. In Q1FY25, TCV was at $8.3 billion.

TCS also announced acquisition of ListEngage, which has deep capabilities in Salesforce. However, details of the acquisition were not available. This will be an acquisition the company is doing after more than a decade.