New Delhi, Oct 9 (PTI) India’s largest IT services firm Tata Consultancy Services (TCS) on Thursday reported a nearly 1.4 per cent increase in consolidated net profit to Rs 12,075 crore in the July-September quarter, buoyed by broad-based growth across verticals, particularly the Banking, Financial Services and Insurance segment.

The IT major had posted a profit of Rs 11,909 crore in the corresponding quarter of 2024-25.

Revenues from operations for the second quarter of FY2025-26 rose by 2.39 per cent to Rs 65,799 crore, up from Rs 64,259 crore in the year-ago quarter, according to a regulatory filing by TCS, which kicked off the Q2 earnings season for tech firms.

Sequentially, profit declined by 5.3 per cent, although revenue increased by 3.7 per cent.

“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,” TCS CEO and MD K Krithivasan said.

Total Contract Value (TCV) -- revenue a company expects to receive from a customer contract over its entire duration -- stood at USD 10 billion in the second quarter, TCS said.

TCS CFO Samir Seksaria said the company’s “disciplined execution” has aided margin expansion alongside strategic investments.

“We achieved good growth momentum across all verticals this quarter. We have prioritised 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,” he said.

During the second quarter of FY26, the company’s Technology & Services segment recorded the highest growth of 2.8 per cent year-on-year, while BFSI (Banking, Financial Services, and Insurance), which contributed the most, 32.2 per cent to the topline, grew 1 per cent year-on-year.

In absolute terms, revenue from BFSI stood at Rs 25,717 crore in the second quarter, up by 8.12 per cent from Rs 23,785 crore in the second quarter of FY25. The Consumer Business segment generated revenue of Rs 10,351 crore, up from Rs 10,025 crore in the corresponding quarter of the previous fiscal.

In geographical markets, the US declined slightly (0.1 per cent) in North America, while Latin America saw 1.8 per cent growth.

In India, a decline of 33.3 per cent was observed during the quarter under review, with the country accounting for 5.8 per cent of the total revenues, compared to 8.9 per cent in the same quarter of the previous fiscal year.

TCS also announced the incorporation of a Wholly Owned Subsidiary (WOS) in India to establish multiple AI and Sovereign Data Centres for providing Infrastructure and technology-enabled Services. In the filing, the company said it will establish a new business entity to build a 1 GW capacity AI data centre in India.

Furthermore, it said it has acquired a 100 per cent stake in US-based ListEngage, for USD 72.80 million (excluding management incentives and costs). ListEngage is a full-stack Salesforce partner that specialises in Marketing Cloud, CRM, Data Cloud, Agentforce, and AI advisory services for enterprises.

TCS declared a second interim dividend of Rs 11 per equity share of Re 1 each of the company.

“The second interim dividend shall be paid on Tuesday, November 4, 2025, to the equity shareholders of the Company whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Wednesday, October 15, 2025, which is the Record Date, fixed for the purpose,” the company said.

Shares of TCS settled at Rs 3,061.95 apiece on the BSE on Thursday, 1.16 per cent higher than the previous close. The financial results were announced after market hours. PTI ANK MBI ANK MR

Dividend declaration sets record date for entitlement following regulatory disclosure of subsidiary incorporation and acquisition. The company announced a second interim dividend with a fixed record date for entitlement, incorporated a wholly owned subsidiary to establish AI and sovereign data centres including a planned 1 GW AI data centre capacity, and completed a 100 per cent acquisition of a US-based Salesforce and AI services firm; these corporate actions were disclosed in the regulatory filing alongside quarter financial metrics and commentary on strategic investments and contract value.