New business entity to build world class AI infrastructure; 1 GW capacity AI datacenter in India; Broad-Based Growth, Disciplined Execution Delivers Strong Q2 Results
Tata Consultancy Services (BSE: 532540, NSE: TCS) reported its consolidated financial results according to Ind AS and IFRS, for the quarter ending September 30, 2025.
Highlights of the Quarter Ended September 30, 2025
Revenue at $7,466 million, up 0.6% QoQ, Sequential growth: 0.8% in Constant Currency
International Revenue grows 0.6% QoQ in Constant Currency
Broad-based growth across verticals, led by continued momentum in BFSI (+1.1% QoQ CC), TSS (+1.8% QoQ CC)
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
Operating Margin at 25.2%; an expansion of 70 bps QoQ
Net Income at $1,464 million, +3.0% YoY | Net Margin at 19.6%
Cash flow from Operations at 110.1% of Net Income
Q2 Total Contract Value (TCV): US$10 billion
Dividend per share: rs 11 | Record date October 15,2025 | Payment date November 4,2025
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. 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.”
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.”
Samir Seksaria, Chief Financial Officer, 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.”
Sudeep Kunnumal, Chief HR Officer, said: “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”.
Key Highlights:
Expanded strategic partnership with Tryg, a leading Scandinavian non-life insurance company that operates in Denmark, Sweden, and Norway. As part of the seven-year $647 million agreement, TCS will partner with Tryg to simplify and standardise operations across its three major markets and drive technological transformation, to accelerate the company’s growth journey.
A leading global healthcare company is significantly expanding its strategic partnership with TCS through a multi-year multi-hundred-million-dollar contract that aims to accelerate growth and transformation across value-based care, health benefits, pharmacy services, and customer experience. The partnership encompasses a broad scope of services, including AI, cloud solutions, data management, digital services, cybersecurity, enterprise solutions, and innovation. This achievement stands as a testament to TCS' deep domain expertise, AI-led delivery capabilities, and strategic investments in innovation, positioning the company as a trusted transformation and Innovation partner.
ALDI SOUTH has extended its strategic partnership with TCS to modernize its IT infrastructure and application landscape across continents. As part of this engagement, TCS will deliver its Cloud Operations Solution to drive automation, strengthen cyber resilience, and enhance service delivery while reducing costs and complexity. This long-term collaboration reinforces TCS’ role as ALDI SOUTH’s trusted technology partner, enabling the retailer to build a scalable, adaptive, and future-ready enterprise.
Expanded collaboration with Weatherford International, a multinational oilfield service company headquartered in North America, with a focus on enhancing operational efficiencies across critical domains such as finance, supply chains, and human resources using advanced AI solutions. TCS will leverage its expertise in automation, artificial intelligence, and digital optimization to drive enterprise-wide business transformation initiatives for Weatherford.
Partnered with NOW Corporation’s telecom arm, to bolster national digital sovereignty, enable financial inclusivity, and build a clean network for the Philippines. Through this Memorandum of Understanding (MoU), TCS commits itself to support the company with capabilities to expand trusted networks, provide sovereign cloud technology and a cyber-defense suite, along with creating robust citizen-centric services.
Launched a new AI-driven operations center in Mexico City, reiterating the company’s commitment to continue accelerating innovation in Mexico and Latin America. The new office in Mexico City is TCS’ eighth operations center in Mexico where the company has built a workforce of over 11,000 highly skilled associates over the last 22 years.
Selected by Kesko, a leading Finnish retail group, as its strategic IT partner to spearhead the transformation of its core technology landscape across the Nordics and Baltics. This partnership is set to play a pivotal role in Kesko’s journey to modernize operations, enhance business agility, and support its long-term growth and expansion ambitions in grocery, car, building and technical trades across multiple geographies and sectors.
Enabled ICICI Lombard to achieve fully automated AWS multi-region Disaster Recovery (DR) switchover. This establishes ICICI Lombard as one of the first insurance companies in India to achieve fully automated multi-region resilience on the Amazon Web Services (AWS) Cloud.
Announced a partnership with Unilab, Inc., a leading pharmaceutical and healthcare company in the Philippines, to modernize its core business systems through a strategic cloud migration. This transformation will strengthen Unilab’s digital infrastructure, enhance operational agility, and drive long-term business growth.
Announced a multi-year partnership with ARN Media, one of Australia’s leading audio-led entertainment companies, to streamline operations, bringing together automation, global delivery optimization, and creating a cloud-first data platform.
Announced the launch of Chiplet-based System Engineering Services, designed to help semiconductor companies push the boundaries of traditional chip design. By using chiplets (which are small integrated circuits that serve as building blocks of larger chips), TCS is enabling chipmakers to deliver faster, efficient, and more powerful processors at a time when global demand for advanced semiconductors is soaring.
Announced strategic partnership with The Warehouse Group, largest retailing group in New Zealand, to support the next phase of the retailer’s digital transformation journey. Under the scope of the partnership, TCS will focus on technology modernization and transformation by streamlining and consolidating platforms and maximizing value from existing investments across the end-to-end retail value chain. TCS will support the Group in building the capabilities and services needed to improve performance.
Selected by a leading Australian bank to transform its Mortgage and Institutional Banking back-office operations. As part of the engagement, TCS will help the bank improve operational efficiency and elevate experience by embedding advanced AI and GenAI solutions into its core processes. This, combined with intelligent automation and data-driven insights, will enable the bank to speed up decision-making, improve accuracy, and ensure seamless service delivery across the critical banking functions.
Expanded our strategic partnership with a large U.S. Insurer to help them drive operational stability, optimize cost, and enhance productivity in the infrastructure engineering space. As a part of this multi-year deal, TCS will consolidate multiple infrastructure technology towers across Site Reliability, Database Reliability & Cloud Operations. By adopting a scalable operating model and leveraging advanced software engineering and AI, TCS will also assist in migrating critical application workloads to a new infrastructure. The transformation will not only build reliability in operations but also set Insurer on the path of long-term sustained growth.
A leading North American enterprise networking company has selected TCS as a partner for AI-infused Application Maintenance and Support across Enterprise functions. As part of the deal, TCS will also expand the Full Stack Observability Lab services to further strengthen end-to-end monitoring. By integrating cognitive automation at the core of IT operations, TCS aims to deliver substantial cost efficiencies and increased business value over the three-year duration of the agreement.
Expanded strategic partnership with an Australia-based integrated infrastructure services provider for its AI-driven business operations. TCS has been a strategic partner spanning across transformation and managed services programs across Cloud, Infrastructure, Enterprise Solutions. In the quarter gone by, the client further advanced its partnership with TCS for advanced AI platform such as ignio™ and AI WisdomNext, and consultation of ERPs for achieving operational efficiency, resilience and TCO reduction.
TCS has extended its partnership with a leading US insurer to drive technology and business transformation initiatives, and enable the client’s shift toward an AI-driven future. TCS will provide enhanced support across key areas including Insurance and Retirement, Investment Solutions, Technology, Cybersecurity, Marketing, Actuarial, and Data Management. This extension reaffirms TCS’ role as a trusted transformation partner, committed to delivering innovation, and long-term value.
TCS has secured a multi-year strategic partnership with a leading UK-based Insurance services provider to transform and manage its digital platforms. TCS will deploy AI based innovative solutions to build an integrated engineering platform to optimize IT Change and Operations. Additionally, Agentic AI-enabled solutions will be delivered across front and back-office functions to enhance operational efficiency and elevate customer experience.
Customer Speak:
“We are simplifying our IT landscape enabling us to further invest in new technology and develop our business across Scandinavia. This means we can deliver the best customer experiences, continue to differentiate Tryg in the market, and strengthen our competitiveness. The extended partnership with TCS, which is one of the leading technology companies in the world, is a key initiative supporting our 2027 target to simplify and scale Tryg’s business. TCS is the right partner to assure an important contribution towards achieving our ambition.”
Johan Kirstein Brammer, Group CEO, Tryg
“With the energy sector facing rapid technological advancements and heightened demands for efficiency, this renewed partnership with TCS underscores the strategic importance of integrating AI-driven solutions and process optimization. These innovations are crucial not only to drive operational excellence but to position Weatherford as a leader in adapting to the evolving industry landscape. By leveraging TCS’ expertise, we aim to enhance scalability, foster innovation, and ensure sustainable growth while reinforcing our commitment to delivering unmatched value to our customers.”
Girish Saligram, President and CEO at Weatherford International
“The NOW Group warmly welcomes the partnership with TCS in building the Sovereign Data Cloud Infrastructure for both the public and private sectors in the Indo-Pacific region. This partnership with TCS, a global market giant, marks a significant step towards enhancing our national digital sovereignty and reducing reliance on foreign technologies. NOW’s and TCS’ expertise and innovative services will contribute to our nation’s data sovereignty by defending against risks and threats while creating a scalable, secure, and robust data infrastructure. The partnership between NOW and TCS exemplifies the technological aspirations of both India and the Philippines, heralding a new dawn of critical digital transformation for the Philippines.”
Mel Velarde, Chairman of the NOW Group
“As the biggest trading sector operator in Finland and one of the biggest in Northern Europe, we are always working to stay competitive and bring our large and diverse customer bases more value. That is why we are partnering with TCS to continuously improve our quality, efficiency and the multichannel customer experience, while staying innovative and resilient amidst uncertainties in the operating environment.”
Arto Hiltunen, Chief Information Officer, Kesko
“With resilience at the core of our digital operating model, and TCS as our strategic technology partner, we’ve been able to transform our disaster recovery capabilities into a truly agile, automated and cloud-native setup. This not only enhances our readiness for unexpected infrastructure disruptions but also reinforces our commitment to uninterrupted service to our customers. I would like to thank and congratulate TCS for enabling this automated disaster recovery solution by leveraging their cloud expertise in the insurance domain.”
Girish Nayak, Chief – Technology and Health (Underwriting & Claims), ICICI Lombard
“We’ve spent the past year lowering costs, but this partnership allows us to go deeper. TCS will build on our current cost initiatives and unlock the capability and capacity to obtain more value from the technology investments we’ve made to date. The partnership is estimated to reduce costs in licenses and managed services by up to $40 million over five years and will help free up our technology teams to focus on what matters most, delivering more value for our customers, communities, and shareholders.”
Mark Stirton, Group Chief Executive Officer, The Warehouse Group
“ARN’s ambition is to be Australia’s leading All Audio company, focused on growing our audiences across every platform and device, driving innovation and delivering outstanding commercial performance. Our focus is on ensuring we can deliver on our ambitions by streamlining how we work and introducing smarter tools and systems. Our strategic partnership with TCS is a significant step towards building a leaner, more agile organisation that is investing in core activities of content creation, audience growth and digital capability.”
Ciaran Davis, Chief Executive Officer, ARN
“We’ve partnered with TCS for our digital transformation, enhancing our infrastructure in line with our EveryWhen rebranding. The adoption of Generative AI marks not just a technology upgrade, but signifies a cultural shift, enabling AI-driven operations powered by the Azure OpenAI platform. Collaborating with TCS, we aim to elevate intelligent automation and establish a unified ecosystem. Our vision is to create an AI-driven enterprise where HR, Finance, and other functions cohesively collaborate, enhancing operational resiliency while driving efficiency and delivering a superior experience for both employees and customers.”
Tom Clark – CTO, Ardonagh Advisory
Research and Innovation:
As on September 30, 2025, the company applied for 9,226 patents, including 239 applied during the quarter, and has been granted 5,086 patents including 147 granted during the quarter.
Key highlights during the quarter
Partnered with CEA, among the world’s most innovative research institutions to accelerate innovation and industrialization of Physical AI solutions. Physical AI is focused on bringing together robotics, artificial intelligence, and intelligent systems to help machines perceive, interpret, and interact with the physical world, thus advancing digital transformation and modernization of industrial processes. TCS and CEA’s leading French research institute for intelligent digital systems, will drive the design, development, and deployment of cutting-edge Physical AI-powered systems for real-world applications.
Partnered with Qualcomm to set up the ‘TCS Innovation Lab’, a space for co-innovation with Qualcomm in Bengaluru. TCS and Qualcomm will co-create smart, scalable, and sustainable Edge AI capabilities utilising Qualcomm® platforms for industries moving towards a software-driven approach to make their systems more efficient and resilient in the lab. The co-innovation lab will enable the creation of customised low-cost solutions that can be deployed on intelligent devices, on location and in real time to streamline processes at large enterprises.
Signed a Memorandum of Understanding (MoU) with the Centre for Development of Advanced Computing (C-DAC) to accelerate the development of India’s sovereign cloud ecosystem. As India doubles down on self-reliant and secure digital infrastructure, this collaboration aims to deliver scalable, and AI-enabled cloud platforms that align with India’s data localization mandates and support the digital transformation of critical public sector services.
Collaborated with MIT Sloan Management Review to launch a new research series to explore the next phase of human and AI collaboration in large enterprises. As enterprises the world over are proactively investing in deploying AI-led solutions to transform their business operations, this multi-sectoral study deeply examines the new paradigms that will redefine the use of AI in global enterprise environments.
Partnered with the Indian Institute of Technology Kanpur, to address one of India’s most pressing challenges: sustainable urbanization. AIRAWAT Research Foundation was set up by IIT Kanpur with support from the Ministry of Education and the Ministry of Housing and Urban Affairs to rethink the way we build our cities. As part of this partnership, TCS and the Foundation will leverage AI and advanced technologies to tackle the challenge of urban planning at scale, in India.
https://in.linkedin.com/company/tata-consultancy-services
