TCS Declares Rs 11 Dividend, Announces Record Date, Payout Date

Tata Consultancy Services (TCS), India's largest IT services firm, has declared an interim dividend of Rs 11 per equity share for the second quarter of fiscal year 2025-26 (Q2 FY26), as per an exchange filing following its Board of Directors meeting held today.

In the quarterly results announced on Thursday, TCS reported a consolidated net profit of Rs 12,075 crore for the July-September quarter, marking a modest 1.4% year-on-year (YoY) increase from Rs 11,955 crore in the same period last year.

TCS Dividend Record Date, Payout Date

The record date for the dividend has been set for October 15, 2025, meaning shareholders listed in the company's register by this date will be eligible for the payout. TCS also announced the payout date for the dividend. The dividend will be disbursed on November 4, 2025, providing a timely return to investors amid a challenging global IT landscape.

TCS Q2 FY 2026 Results

The TCS Q2FY 2026 numbers were impacted by one-time restructuring expenses of Rs 1,135 crore, related to an organizational realignment initiated in July 2025.

Excluding these exceptional costs, the company's underlying performance showed stronger growth, with net income reaching Rs 12,904 crore, up 8.4% YoY, and a net margin of 19.6%.

Revenue from operations rose to Rs 65,799 crore, reflecting a 2.4% YoY growth from Rs 64,259 crore and a 3.7% sequential increase.

In dollar terms, revenue stood at $7,466 million, up 0.6% quarter-on-quarter (QoQ). Operating margins expanded to 25.2%, improving by 70 basis points QoQ, underscoring efficiency gains despite economic headwinds.

The quarter also highlighted robust deal momentum, with total contract value (TCV) bookings hitting $10 billion.

Earnings per share (EPS) came in at Rs 33.37, reinforcing a positive outlook for shareholders.

On the balance sheet front, TCS maintained a strong position with total assets at Rs 175,219 crore. The cash flows from operations reached 110.1% of net income, demonstrating solid liquidity management.

Also Read: TCS Q2 Results: Net Profit Surges 1.4%; Rs 11 Dividend Announced

Segment-wise, TCS drew significant revenues from key verticals including banking, financial services, and insurance (BFSI), manufacturing, healthcare, and telecommunications. These sectors continue to drive growth, bolstered by investments in cloud, cybersecurity, and generative AI solutions.

The restructuring expenses stem from a strategic overhaul aimed at enhancing long-term efficiency and profitability.

These non-recurring charges include severance payments, asset write-offs, and related costs tied to the layoffs of around 12,000 employees—representing about 2% of TCS's global workforce of over 600,000.

While such measures pose short-term financial pressures, they are designed to streamline operations and position the company for sustained growth in an AI-centric future.

TCS's results set the tone for the Indian IT sector's earnings season, amid ongoing concerns over US economic slowdowns and talent realignments.