TCS shares rise 3% after June-quarter earnings beat

Tata Consultancy Services reported June-quarter revenue of ₹722.75 billion, above the ₹720.30 billion analysts’ estimate, and net profit rose 4.6% to ₹133.49 billion. The company recorded the profit despite a one-time legal settlement charge. TCS shares rose more than 3% on the trading day and the Nifty IT index gained over 2%, supporting broader market moves.

In dollar terms, revenue was $7.62 billion, flat sequentially and up 2.7% year‑on‑year.

TCS reported that steady demand from banking clients, a weaker rupee and growing AI-linked work supported the quarter. Revenue from the banking, financial services and insurance vertical rose 2.4% quarter‑on‑quarter, aided by large deal wins from the prior fiscal year and steadier client spending.

Annualised AI revenue crossed $2.6 billion in the quarter, up from $2.3 billion in the previous quarter. Total contract value was reported at $9.5 billion, including an $800 million AI‑led transformation deal with SKF and partnerships tied to ServiceNow and a Europe‑based Fortune Global 50 client.

TCS added about 9,300 employees during the quarter, its largest net addition in more than three years.

The company’s total contract value compared with an order book of $12 billion in the previous quarter. Clients in manufacturing, life sciences and consumer sectors remained cautious about discretionary IT spending amid global uncertainty.

Brokerages were divided on the outlook. CLSA expects stronger sequential growth in the September quarter, while other brokerages are waiting for clearer evidence of sustained deal conversions and higher discretionary spending across the industry.

Peers such as Infosys, HCLTech and Wipro are scheduled to report results in the coming quarters.