TCS Q2 Results 2025 are declared and India’s biggest IT company, Tata Consultancy Services (TCS), has shared steady growth numbers for the July–September quarter of FY26. The company reported a small rise in revenue and profit, announced a second interim dividend for shareholders, and also gave updates about its workforce. Even in a tough global market, TCS has managed to stay stable, which is a positive sign for investors.
I have been following the Indian IT sector for years as both an investor and a market watcher. TCS results always set the tone for the industry. In my experience, whenever TCS delivers steady results, the overall IT sector gets support. This quarter also shows that TCS is strong enough to face challenges like global slowdown and still reward its investors.
IN THIS ARTICLE
TCS Q2 FY26 Results: Main Highlights
Here are the most important numbers from the latest quarter:
| Particulars | Q2 FY26 (July–Sept 2025) | Change (YoY) |
|---|---|---|
| Revenue | ₹65,799 crore | +2.4% |
| Net Profit | ₹12,075 crore | +1.4% |
| Operating Margin | 25.2% | +70 basis points (QoQ) |
| Dividend | ₹11 per share (second interim) | – |
| Headcount | 5.93 lakh employees | –19,755 in Q2 |
| Restructuring Cost | ₹1,135 crore | Severance expenses |
Revenue Growth
TCS reported revenue of ₹65,799 crore, which is 2.4% higher compared to the same quarter last year. While the growth is not very high, it shows stability in a difficult market where clients, especially in US and Europe, are cutting IT spending.
Net Profit
The company posted net profit of ₹12,075 crore, which is 1.4% higher than last year. Profit growth was impacted by restructuring costs of over ₹1,100 crore, but overall, TCS still managed to show positive numbers.
Dividend for Shareholders
TCS announced a second interim dividend of ₹11 per share. This shows that the company continues to reward shareholders regularly. For long-term investors, regular dividend payout is one of the biggest advantages of holding TCS shares.
Economic Times – TCS Q2 Results 2025 Highlights
Operating Margin
The company’s operating margin improved to 25.2%, which is 70 basis points higher compared to the previous quarter. This improvement came from cost-saving measures and efficiency gains, even though restructuring expenses were high.
Workforce Update
One of the biggest news in this quarter was the change in employee numbers. TCS reduced around 19,755 employees, bringing the total headcount down to 5.93 lakh. The company said this was part of a restructuring exercise. They also faced extra costs of ₹1,135 crore in severance packages.
While this sounds negative, TCS management has clarified that some of the high layoff numbers in media are exaggerated. Still, a reduction of nearly 20,000 employees is a big move for such a large company.
Business Segments Performance
Different sectors of TCS business showed mixed results this quarter:
- Manufacturing and Energy & Utilities – posted stronger growth compared to other segments.
- Banking and Financial Services (BFSI) – remained under pressure due to weak demand in global markets.
- Geographies – India, Middle East, Africa, and Asia-Pacific performed better than US and Europe, where clients are still cautious about new IT spending.
Why TCS Results Matter for Investors
For Indian investors, TCS results are always important because:
- TCS is the largest IT company in India, and its numbers show the overall health of the sector.
- Regular dividends make it a reliable choice for long-term investors.
- Even in difficult times, TCS has shown stability in revenue and profit, which builds confidence.
Challenges in This Quarter
Even though results are steady, TCS faced some challenges:
- Global slowdown in US and European markets, leading to weak demand.
- Headcount reduction of nearly 20,000 employees, raising concerns among employees and industry watchers.
- Severance costs of ₹1,135 crore, which affected profitability.
Positive Signs for Future
Analysts believe TCS will continue to do well in the coming quarters because:
- Demand for AI and digital transformation projects is increasing.
- Growth markets like India and Middle East are showing strong opportunities.
- Cost-saving measures and efficiency improvements will help maintain healthy margins.
However, performance in US and Europe may stay weak for some time.
Simple Explanation for Investors
If you are a small investor looking at TCS shares:
- The company is still growing, though slowly.
- You will get regular dividends (₹11 per share declared in this quarter).
- TCS has reduced its workforce, which shows it is trying to control costs and prepare for the future.
- For long-term holding, TCS continues to be a strong company.
Conclusion
The TCS Q2 Results 2025 show steady growth in both revenue and profit, margin expansion, and continued dividends for shareholders. Even though there were challenges like layoffs and global slowdown, TCS has shown that it can manage difficult conditions and still reward investors.
For Indian investors, these results highlight that TCS remains a safe and stable bet in the IT sector.
