The IT sector majot Tata Consultancy Services (TCS) announced that its Q2 numbers today. Apart from the headline numbers- the profit and revenue that beat estomates, the company incurred Rs 1,135 crore restructuring expenses in the second-quarter. However, TCS did not disclose its attrition rate or total headcount for the quarter.
Here are five key takeaways from TCS’ second-quarter results.
TCS incurs Rs 1,135 crore in restructuring expenses
TCS said it incurred one time restructuring expenses of Rs 1,135 crore during the three and six months ended September 30, 2025.
“In July 2025, the Group announced restructuring initiatives. As part of this initiative, the Group released or will release certain associates from the organisation whose deployment may not be feasible,” the company said in its release.
TCS added that termination benefits were provided to the employees affected, as per the policy devised for this purpose. “Such termination benefits, due to their size, nature or occurrence, are disclosed as an exceptional item in the audited consolidated interim financial results,” the company added.
Expenses rise on account of employee benefit expenses
TCS reported total expenses of Rs 49,463 crore in the September quarter, higher than Rs 48,118 crore in the previous quarter. Employee benefit expenses remained the biggest cost component at Rs 38,606 crore, reflecting the company’s large workforce and compensation revisions during the period. The IT major posted a total comprehensive income of Rs 12,551 crore for the quarter.
TCS announced Rs 11/sh interim dividend
The IT firm has announced a second dividend this financial year. In second quarter the company announced a dividend of Rs 11 per share and has fixed October 15 as the record date and November 4 as the dividend payment date. In Q1 FY 26 also, TCS had announced a dividend of Rs 11 per equity share.
Large deal wins drive strong TCV of $10 billion
The total contract value (TCV) for the quarter came in at $10 billion. The company reported several large deal wins during the quarter. These included a $647 million, seven-year transformation deal with Scandinavian insurer Tryg, a multi-hundred-million-dollar partnership with a global healthcare company, and long-term modernization contracts with ALDI SOUTH, Weatherford International, Kesko, and ICICI Lombard. Cash flow from operations was 110.1% of net income.
TCS forms new AI business entity
TCS announced the formation of a new business entity to build a world-class AI infrastructure, including a 1 GW capacity AI data centre in India. The board also approved the acquisition of ListEngage, a Salesforce-focused digital marketing firm.
The company said it continued to invest in nurturing an AI-first culture and upskilling talent. Its global AI hackathon, involving over 2.75 lakh employees, was described as the world’s largest “Ideate and Build with AI” event.
“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.”
TCS Q2 profit up 1.39%
TCS reported a consolidated revenue of Rs 65,799 crore, a growth of 3.7% quarter-on-quarter and 0.8% in constant currency. Net profit rose marginally by 1.39% to Rs 12,075 crore, including one-off restructuring expenses of Rs 1,135 crore. However, excluding the one-off impact, net profit rose 8.36% year-on-year to Rs 12,904 crore. The operating margin expanded by 70 basis points sequentially to 25.2%, while the net margin stood at 19.6%.