TCS Posts Q2 Net Profit of Rs 13,884 Crore on Revenue of Rs 73,188 Crore and Declares Rs 12 Dividend

Tata Consultancy Services (TCS), India’s largest information technology services exporter, announced its financial results for the second quarter, posting a 4% quarter-on-quarter increase in consolidated net profit to Rs 13,884 crore compared to Rs 13,349 crore in the preceding quarter. On a year-on-year basis, net profit grew by double digits from Rs 12,075 crore.

Consolidated revenue from operations advanced 1.3% sequentially to Rs 73,188 crore, compared to Rs 72,275 crore reported in the June quarter. In annual terms, top-line growth expanded 11.2% over the Rs 65,799 crore recorded in the corresponding period of the previous year.

Key Earnings Highlights

• Consolidated net profit stood at Rs 13,884 crore, up 4% sequentially and 15% year-on-year.
• Revenue from operations rose 1.3% QoQ and 11.2% YoY to Rs 73,188 crore.
• Earnings Before Interest and Tax (EBIT) came in at Rs 17,553 crore, rising 1.4% from Rs 17,317 crore in Q1.
• Operating margin stood at 24%, while net margin was recorded at 19%.
• The Board of Directors approved a second interim dividend of Rs 12 per equity share.

Operational Performance and Margins

The Mumbai-based IT giant registered operating profit (EBIT) of Rs 17,553 crore, reflecting a 1.4% sequential uptick and a 6% increase from the year-ago period’s Rs 16,565 crore. Operating margins settled at 24%, showing stable performance following prior quarters influenced by wage adjustments and cost pressures across international accounts. Pre-tax income rose to Rs 18,638 crore, up 8.3% compared to Rs 17,203 crore reported in the same period last year.

Performance during the quarter was anchored by steady execution in core industry verticals like Banking, Financial Services, and Insurance (BFSI), alongside enterprise technology services.

Dividend Payout for Shareholders

Continuing its tradition of regular capital returns, the TCS board approved a second interim dividend of Rs 12 per equity share having a face value of Re 1 each. According to the company's regulatory filing, the interim payout is scheduled to be distributed on Friday, October 30 to shareholders registered on the record date.

Market Context and Sector Impact

The second-quarter earnings scorecard kicked off the quarterly corporate reporting season for Dalal Street. Prior to the post-market results disclosure, TCS shares traded with mild volatility, closing down 0.21% at Rs 2,076 on the National Stock Exchange (NSE) after hitting an intraday high of Rs 2,138 earlier in the session. The broader Nifty IT index had also tracked higher during morning trade in anticipation of the bellwether’s performance.

The performance indicates persistent demand for digital transformation, cost-efficiency solutions, and enterprise artificial intelligence deployments, providing a baseline of stability for the domestic technology sector as peer companies prepare to announce their earnings in the coming days.

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