Below is a structured extraction and summary of the relevant and actionable financial information from the Tata Consultancy Services Limited (TCS) results filing dated October 9, 2025, for the quarter and six-month period ended September 30, 2025.
1. Auditor’s Note
- Opinion:
Both standalone and consolidated financial results have been audited by B S R & Co. LLP with an unmodified (clean) audit opinion.
- Qualifications/Concerns:
None reported. The auditor confirms compliance with applicable accounting standards and no material misstatements or going concern issues were noted.
- Conclusion:
Auditor’s notes are standard boilerplate with no qualifications or concerns.
2. Financial Performance
Periods Covered:
- Latest quarter: Q2 FY26 (July-Sept 2025) — ended September 30, 2025
- Immediately preceding quarter: Q1 FY26 (April-June 2025) — ended June 30, 2025
- Same quarter previous year: Q2 FY25 (July-Sept 2024) — ended September 30, 2024
- Six months ended September 30, 2025 (H1 FY26)
- Six months ended September 30, 2024 (H1 FY25)
- Full financial year ended March 31, 2025 (FY25)
2.1 Consolidated Financials (₹ crore)
| Metric | Q2 FY26 (Sep 30, 2025) | Q1 FY26 (Jun 30, 2025) | Q2 FY25 (Sep 30, 2024) | H1 FY26 (Apr-Sep 2025) | H1 FY25 (Apr-Sep 2024) | FY25 (Apr 2024-Mar 2025) |
|---|
| Revenue from operations | 65,799 | 63,437 | 64,259 | 1,29,236 | 1,26,872 | 2,55,324 |
| Other income | 867 | 1,660 | 729 | 2,527 | 1,691 | 3,962 |
| Total income | 66,666 | 65,097 | 64,988 | 1,31,763 | 1,28,563 | 2,59,286 |
| Employee benefit expenses | 38,606 | 37,715 | 36,654 | 76,321 | 73,070 | 1,45,788 |
| Cost of equipment & software | 967 | 726 | 3,230 | 1,693 | 5,381 | 11,648 |
| Finance costs | 229 | 195 | 162 | 424 | 335 | 796 |
| Depreciation & amortisation | 1,413 | 1,361 | 1,266 | 2,774 | 2,486 | 5,242 |
| Other expenses | 8,248 | 8,121 | 7,644 | 16,369 | 15,028 | 30,481 |
| Total expenses | 49,463 | 48,118 | 48,956 | 97,581 | 96,300 | 1,93,955 |
| Profit before exceptional item & tax | 17,203 | 16,979 | 16,032 | 34,182 | 32,263 | 65,331 |
| Exceptional item (Restructuring expenses) | 1,135 | - | - | 1,135 | - | - |
| Profit before tax | 16,068 | 16,979 | 16,032 | 33,047 | 32,263 | 65,331 |
| Tax expense (total) | 3,937 | 4,160 | 4,077 | 8,097 | 8,203 | 16,534 |
| Profit for the period | 12,131 | 12,819 | 11,955 | 24,950 | 24,060 | 48,797 |
| Other comprehensive income (net) | 420 | 1,281 | 1,061 | 1,701 | 847 | 589 |
| Total comprehensive income | 12,551 | 14,100 | 13,016 | 26,651 | 24,907 | 49,386 |
| EPS (Basic & Diluted, ₹) | Not fully provided* | Not fully provided* | Not fully provided* | Not fully provided* | Not fully provided* | Not fully provided* |
*EPS data for consolidated not fully visible in the extract.
2.2 Standalone Financials (₹ crore)
| Metric | Q2 FY26 (Sep 30, 2025) | Q1 FY26 (Jun 30, 2025) | Q2 FY25 (Sep 30, 2024) | H1 FY26 (Apr-Sep 2025) | H1 FY25 (Apr-Sep 2024) | FY25 (Apr 2024-Mar 2025) |
|---|
| Revenue from operations | 54,531 | 52,788 | 53,990 | 1,07,319 | 1,06,834 | 2,14,853 |
| Other income | 1,768 | 2,703 | 3,185 | 4,471 | 5,602 | 9,642 |
| Total income | 56,299 | 55,491 | 57,175 | 1,11,790 | 1,12,436 | 2,24,495 |
| Employee benefit expenses | 28,030 | 27,640 | 26,815 | 55,670 | 53,472 | 1,07,300 |
| Cost of equipment & software | 775 | 623 | 3,163 | 1,398 | 5,236 | 11,372 |
| Finance costs | 203 | 171 | 146 | 374 | 291 | 703 |
| Depreciation & amortisation | 1,139 | 1,103 | 1,008 | 2,242 | 1,977 | 4,220 |
| Other expenses | 10,058 | 9,768 | 9,454 | 19,826 | 18,993 | 38,252 |
| Total expenses | 40,205 | 39,305 | 40,586 | 79,510 | 79,969 | 1,61,847 |
| Profit before exceptional item & tax | 16,094 | 16,186 | 16,589 | 32,280 | 32,467 | 62,648 |
| Exceptional item (Restructuring expenses) | 850 | - | - | 850 | - | - |
| Profit before tax | 15,244 | 16,186 | 16,589 | 31,430 | 32,467 | 62,648 |
| Tax expense (total) | 3,416 | 3,634 | 3,595 | 7,050 | 7,358 | 14,591 |
| Profit for the period | 11,828 | 12,552 | 12,994 | 24,380 | 25,109 | 48,057 |
| Other comprehensive income (net) | (265) | 131 | 240 | (134) | 274 | 304 |
| Total comprehensive income | 11,563 | 12,683 | 13,234 | 24,246 | 25,383 | 48,361 |
| EPS (Basic & Diluted, ₹) | 32.70 | 34.69 | 35.91 | 67.38 | 69.40 | 132.83 |
| Interim dividend per share (₹) | 11.00 | 11.00 | 10.00 | 22.00 | 20.00 | 96.00 |
3. Detailed Notes / Management Commentary
- Accounting Standards:
Results prepared under Ind AS 34 (Interim Financial Reporting) as per Companies Act, 2013.
- Audit:
Statutory auditors have expressed an unmodified opinion on both standalone and consolidated results.
- Restructuring Initiatives:
- Announced in July 2025.
- Certain associates released due to deployment infeasibility.
- Termination benefits provided as per policy.
- Restructuring expenses classified as Exceptional item:
- Standalone: ₹850 crore (Q2 FY26 and H1 FY26)
- Consolidated: ₹1,135 crore (Q2 FY26 and H1 FY26)
- Dividend:
- Second interim dividend declared: ₹11 per equity share (face value ₹1).
- Total interim dividend for H1 FY26: ₹22 per share.
- No changes in accounting policies or material adjustments reported.
- No caveats or qualifications related to NPAs, slippages, or financial services KPIs (not applicable).
- Sector-specific KPIs: Not explicitly disclosed in the filing.
- Other: Results available on NSE, BSE, and company website.
4. Segment Information (Consolidated)
| Segment | Q2 FY26 Revenue | Q1 FY26 Revenue | Q2 FY25 Revenue | H1 FY26 Revenue | H1 FY25 Revenue | FY25 Revenue | Q2 FY26 Segment Result | H1 FY26 Segment Result | FY25 Segment Result |
|---|
| Banking, Financial Services & Insurance (BFSI) | 25,717 | 24,736 | 23,785 | 50,453 | 46,859 | 94,597 | 6,818 | 13,034 | 25,135 |
| Manufacturing | 6,631 | 6,401 | 6,310 | 13,032 | 12,581 | 25,170 | 2,021 | 4,019 | 8,225 |
| Consumer Business | 10,351 | 10,155 | 10,025 | 20,506 | 20,016 | 40,197 | 2,868 | 5,667 | 11,222 |
| Communication, Media & Technology | 9,802 | 9,436 | 12,088 | 19,238 | 22,882 | 45,893 | 2,833 | 5,488 | 9,582 |
| Life Sciences & Healthcare | 6,884 | 6,422 | 6,630 | 13,306 | 13,539 | 26,456 | 1,891 | 3,466 | 7,448 |
| Others | 6,414 | 6,287 | 5,421 | 12,701 | 10,995 | 23,011 | 1,547 | 3,180 | 5,795 |
| Total | 65,799 | 63,437 | 64,259 | 1,29,236 | 1,26,872 | 2,55,324 | 17,978 | 34,853 | 67,407 |
- Unallocable expenses (including restructuring):
- Q2 FY26: ₹2,777 crore
- H1 FY26: ₹4,333 crore
- Operating income (Segment result - Unallocable expenses):
- Q2 FY26: ₹15,201 crore
- H1 FY26: ₹30,520 crore
5. Capex, Projects, and Corporate Activity
- Capital Expenditure (Capex):
- Consolidated:
- Property, plant & equipment additions: ₹1,868 crore (H1 FY26) vs ₹1,491 crore (H1 FY25)
- Capital work-in-progress increased to ₹2,221 crore (Sep 30, 2025) from ₹1,546 crore (Mar 31, 2025)
- Standalone:
- Property, plant & equipment additions: ₹1,578 crore (H1 FY26) vs ₹1,274 crore (H1 FY25)
- Capital work-in-progress increased to ₹1,952 crore (Sep 30, 2025) from ₹1,318 crore (Mar 31, 2025)
- Acquisitions:
- Two real estate subsidiaries acquired effective January 29, 2025 (mentioned in annexure).
- Acquisition-related payments: ₹554 crore (H1 FY26 consolidated and standalone).
- Restructuring:
- Ongoing restructuring initiatives announced July 2025.
- Exceptional restructuring expenses: ₹1,135 crore consolidated, ₹850 crore standalone for Q2 and H1 FY26.
- Impairments/Writedowns:
- Disposals:
- No significant disposals reported.
- Strategic shifts:
- No explicit commentary beyond restructuring and associate releases.
6. Standalone vs Consolidated
- Both Standalone and Consolidated audited financial results are provided and audited.
- Consolidated results include 54 subsidiaries and 2 trusts.
- Consolidated revenue and profit are higher than standalone, reflecting subsidiaries’ contributions.
- Restructuring expenses are higher on consolidated basis (₹1,135 crore) vs standalone (₹850 crore), indicating some restructuring impact on subsidiaries.
Additional Notes
- Dividend:
- Second interim dividend declared at ₹11 per share (face value ₹1).
- Total interim dividend for H1 FY26: ₹22 per share.
- Cash and Cash Equivalents:
- Consolidated cash & equivalents decreased to ₹6,358 crore (Sep 30, 2025) from ₹8,342 crore (Mar 31, 2025).
- Standalone cash & equivalents decreased to ₹1,602 crore (Sep 30, 2025) from ₹2,610 crore (Mar 31, 2025).
- Balance Sheet Highlights (Consolidated):
- Total assets increased to ₹1,75,219 crore (Sep 30, 2025) from ₹1,59,629 crore (Mar 31, 2025).
- Equity increased to ₹1,07,461 crore from ₹95,771 crore.
- Balance Sheet Highlights (Standalone):
- Total assets increased to ₹1,44,621 crore from ₹1,32,788 crore.
- Equity increased to ₹85,029 crore from ₹75,617 crore.
Summary for Investment Analysis Team
| Aspect | Key Points |
|---|
| Auditor’s Note | Clean/unmodified opinion; no qualifications or concerns. |
| Financial Performance | - Consolidated Q2 FY26 revenue ₹65,799 cr (+2.4% QoQ, -2.2% YoY).<br>- Consolidated PAT ₹12,131 cr (+5.3% QoQ, +1.5% YoY).<br>- Standalone Q2 FY26 revenue ₹54,531 cr (+3.3% QoQ, +1.0% YoY).<br>- Standalone PAT ₹11,828 cr (-5.8% QoQ, -8.9% YoY).<br>- Restructuring expenses impact profits (exceptional item).<br>- EPS (Standalone) Q2 FY26: ₹32.70 vs ₹35.91 YoY. |
| Management Commentary | - Restructuring ongoing since July 2025; termination benefits provided.<br>- No changes in accounting policies.<br>- Dividend declared ₹11 per share interim.<br>- No sector-specific KPIs disclosed.<br>- No NPAs/slippages or financial services-specific issues. |
| Segment Performance | - BFSI largest segment, growing QoQ and YoY.<br>- Communication, Media & Technology segment declined YoY.<br>- Restructuring expenses included in unallocable expenses.<br>- Segment profits increased QoQ and YoY overall. |
| Capex & Corporate Activity | - Capex increased YoY; significant investments in property, plant, equipment, and right-of-use assets.<br>- Acquisitions of real estate subsidiaries in Jan 2025.<br>- No impairments or write-downs.<br>- Restructuring expenses significant and disclosed separately. |
| Standalone vs Consolidated | |