Tata Consultancy Services (TCS) Latest Updates

TCS will announce its Q2 results for the September 2025 quarter on October 9; the board will also consider declaring a second interim dividend for FY26, with the record date set for October 15. Revenue growth is expected to remain muted, driven mainly by a ramp-down of the BSNL deal, with projected revenues around ₹65,150 crore and net profit near ₹12,719 crore. The company is undergoing major workforce restructuring, impacting around 12,000 employees, with a tiered severance package; minimum is six months’ pay, rising up to two years for those with over 15 years at TCS. Roles affected are mainly those not redeployed or whose skills did not match evolving needs, as TCS increases investment in AI, data analytics, and cybersecurity. TCS’s demand outlook remains cautious, with deal decision times longer as clients focus on cost optimization and vendor consolidation. Wage hikes have been rolled out this quarter, and operating margins are expected to remain flat or slightly decline due to restructuring costs and lower utilisation. TCS and the IT sector are facing macro uncertainties including the US President’s recent hike in H-1B visa fees, which is expected to impact profits, though the cost may partly be passed to clients. Despite these challenges, TCS has secured some major deals recently, including a $640 million contract with Scandinavian insurer Tryg.