TCS plans new entity for AI infra development: Here’s how AI boosted Q2 FY26 results

The country's largest software services company reported a consolidated net profit of ₹12,075 crore in the second quarter of the current financial year, marking an annual increase of 1.4% from ₹11,909 crore in the same period last year.

On a sequential basis, however, TCS' net profit declined 5.4% from ₹12,760 crore in the previous quarter.

The revenue from operations of Tata Consultancy Services climbed 3.72% to ₹65,799 crore in Q2 FY26, as against ₹63,437 in the June quarter of the current fiscal year. On a YoY basis, revenue climbed 2.39%. 

“We delivered strong growth momentum led by data, cloud and AI-powered enterprise transformation. Our customer engagements are focused on rapid value realisation to deliver speed, efficiency and growth. TCS' AI Hackathon set a new benchmark – it is the largest, most diverse and most innovative AI-first culture-building initiative. Our new AI and Services Transformation unit will further scale and integrate our efforts,” said Aarthi Subramanian, Executive Director—President and Chief Operating Officer.

Additionally, TCS’s board of directors approved the incorporation of a wholly owned subsidiary (WOS) in India to establish multiple AI and sovereign data centres, aimed at delivering infrastructure and technology-enabled services, the company said in a separate statement.

Other collaborations for AI

• TCS in Q2 launched a new AI-driven operations centre in Mexico City, reiterating the company’s commitment to continue accelerating innovation in Mexico and Latin America.

“The new office in Mexico City is TCS’ eighth operations centre in Mexico, where the company has built a workforce of over 11,000 highly skilled associates over the last 22 years,” the company said in a statement.

• During the quarter, TCS deepened its collaboration with North America-based oilfield services firm Weatherford International, aiming to enhance operational efficiencies across key areas such as finance, supply chain, and human resources through advanced AI solutions.

• In Q2 FY26, TCS was chosen by a leading Australian bank to transform its mortgage and institutional banking back-office operations. Under this engagement, TCS will enhance operational efficiency and customer experience by integrating advanced AI and GenAI solutions into the bank’s core processes.

• The Indian IT services firm in the reporting quarter also expanded its strategic partnership with an Australia-based integrated infrastructure services provider for its AI-driven business operations.

• TCS has secured a multi-year strategic partnership with a leading UK-based insurance services provider to transform and manage its digital platforms. The Tata Group company will deploy AI-driven innovative solutions to build an integrated engineering platform aimed at optimising IT change and operations.

• The company also partners with Qualcomm for ‘TCS Innovation Lab’ in Bengaluru, aiming to co-develop scalable Edge AI solutions that leverage Qualcomm platforms to drive efficiency and resilience for industries shifting to a software-driven approach.

“We are on a journey to become the world’s largest AI-led technology services company. Our journey is anchored in bold transformation across talent, infrastructure, ecosystem partnerships and customer value. The investments, including the building of a world-class AI infrastructure business, demonstrate our commitment to this transformation,” said K Krithivasan, Chief Executive Officer and Managing Director, TCS.