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Tata Consultancy Services (TCS) posted strong Q2 growth. The official announcement revealed that the company’s revenue rose 11.2% year-on-year. The consolidated revenue from operations rose 1.3% quarter-on-quarter to Rs. 73,188 crore from Rs. 72,275 crore. The company’s net profit also grew 15% to Rs. 13,884 crore.
The most highlighted part of the announcement was the growth of the company’s annualized AI revenue, which has reached USD 3.1 billion, which was USD 2.6 billion in the previous quarter. AI now accounts for more than 10% of TCS revenue. The company also reported total contract wins worth USD 9.6 billion during the quarter. TCS Executive Director, President and Chief Operating Officer Aarthi Subramanian mentioned, “Demand for delivering business outcomes with AI-native solutions, AI-led transformation of enterprise systems and autonomous GBS continues to accelerate.”
The results came as TCS shares remained under pressure. The stock is down sharply from its 52-week high, with the decline standing at about 35.7%. Investors are watching the impact of AI on IT spending, pricing and future growth. TCS also announced a second interim dividend of Rs. 12 per share. The company added 4,000 employees during the quarter, showing that demand for skilled workers remains strong even as AI changes some parts of the IT business.
The USD 3.1 billion AI revenue figure shows how quickly AI is becoming a bigger part of TCS. The company is taking on more AI projects for clients. It is also spending on the systems needed to support this work.
The MHP and Best Buy deals also fit into this strategy. TCS agreed to acquire Porsche’s IT arm MHP, adding skills in automotive technology, AI and manufacturing. It also expanded its GCC business through a transaction involving Best Buy’s Bengaluru unit.
These moves give TCS access to new skills, clients and areas of work. At the same time, its AI infrastructure plans give the company more room to grow. The bigger challenge will be turning these investments into steady business growth.
TCS is entering a new phase where AI, acquisitions and infrastructure are moving together. The Q2 results show strong revenue and profit growth, but the stock fall shows that investors want more. The next few quarters will show whether TCS can turn its AI push into lasting growth.
