Tata Consultancy Services (TCS) announced its financial results for the second quarter of FY26 on October 9, 2025.
The company reported modest growth in revenue and profit, a stable headcount, and a continued focus on operational efficiency amid global demand uncertainties.
TCS declared a second interim dividend of ₹11 per equity share.
The dividend will be paid on November 4, 2025, to shareholders whose names appear on the register as of October 15.
Financial Performance: Moderate Growth Amid Mixed Sectoral Trends
TCS posted a net profit of ₹12,075 crore in Q2 FY26, reflecting a 1.4 percent year-on-year increase from ₹11,909 crore in Q2 FY25.
However, the figure was below market expectations of ₹12,573 crore.
Revenue from operations stood at ₹65,799 crore, up 2.4 percent year-on-year and 3.7 percent quarter-on-quarter from ₹63,460 crore in Q1 FY26.
On a constant currency basis, revenue grew 0.8 percent quarter-on-quarter.
Sector-wise, growth was led by Life Sciences and Healthcare (up 3.4 percent), Manufacturing (up 1.6 percent), and Technology Services (up 1.8 percent).
The BFSI segment remained flat, while Communications continued to show weakness.
TCS Headcount and Attrition: Stability with Strategic Restructuring
TCS reported a total workforce of 6.13 lakh employees at the end of Q2 FY26, nearly unchanged from Q1 FY26.
The company’s attrition rate dropped to 13.8 percent, down from 14.3 percent in Q1 FY26 and 15.3 percent in Q2 FY25, indicating improved retention.
However, the company is reportedly planning a restructuring exercise involving around 12,000 employees, accounting for approximately 2 percent of its workforce.
While details remain limited, the move is seen as part of a broader effort to optimize operations and align talent with evolving business needs.
Deal Wins and Partnerships: Strengthening the Pipeline
TCS continued to build its deal pipeline, with analysts estimating total contract value (TCV) between 8 to 10 billion dollars for Q2 FY26.
This marks a slight increase from Q1 FY26, where TCV was pegged at 7.5 billion dollars.
The company secured large transformation deals across BFSI, manufacturing, and healthcare, though macroeconomic challenges in key markets remain a concern.
TCS Hiring Outlook: Calibrated Expansion Based on Demand
TCS did not announce any major hiring drives during the quarter. However, management emphasized a calibrated hiring approach aligned with demand visibility.
The company expects overall growth for FY26 to be in the range of 4 to 6 percent and will adjust hiring accordingly.
TCS will continue onboarding freshers and lateral hires in specialized areas such as cloud, artificial intelligence, and cybersecurity, but will do so at a moderated pace compared to previous years.
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