The shares of Tata Consultancy Services are in focus in today’s session. The company has partnered with global alternative asset manager TPG to scale up HyperVault, its newly formed Artificial Intelligence data centre unit. Both companies will jointly invest up to Rs 18,000 crore over the next few years. This makes one of the largest capital commitments in the country’s data centre infrastructure space.
TCS-TPG investment
According to a TCS statement, the capital will be infused into HyperVault through a mix of equity, compulsorily convertible preference shares, and additional debt. TPG will invest up to Rs 8,820 crore of the total commitment, while TCS will provide the remaining amount to uphold a 51:49 capital participation ratio.
The investment will be carried out in stages and is still dependent on the required conditions and regulatory approvals. According to the ultimate investment order, TPG is anticipated to hold between 27.5% and 49% of HyperVault.
“Looking ahead, we plan four distinct progressions. First, we establish a large pool of AI agents working alongside our human workforce. Second, we deliver solutions through a human+AI model. Third, we will consciously invest in AI data centres and cloud infrastructure. Fourth, we forge industry-best partnerships with hardware providers, solution innovators, and startups,” said TCS in its FY25 annual report.
TCS Q2 FY26
The company posted a consolidated net profit of Rs 12,075 crore for the second quarter of the current financial year, an increase of 1.4% year-on-year from Rs 11,909 crore in the same quarter a year back. On a quarter-on-quarter basis, the profit fell around 5.4% from Rs 12,760 crore posted in Q1 FY26. TCS’s revenue from operations stood at Rs 65,799 crore, up 2.4% YoY from Rs 64,259 crore.
TCS stock performance
The share price of Tata Consultancy Services has risen 2% in the last five trading sessions. The stock has moved up 5% in the past one month. However, the stock has declined 10.6% in the past six months and almost 23% in the last one year.