TCS Share Price Slips After Q2 Results | Stock Market Today

Market Performance

The TCS share price edged lower in early trading on Friday, reacting to its Q2 results announcement. Shares of India’s largest IT services exporter declined by 1.53%, hitting an intraday low of ₹3,015 per share on the BSE.

This mild dip in the stock market today came after investors digested the company’s quarterly earnings and margin details, which showed mixed trends across business metrics.

Main News

Tata Consultancy Services (TCS), the country’s leading IT major, posted a net profit of ₹12,075 crore in Q1FY26, down 3.8% from ₹12,760 crore in the preceding quarter.

However, the company managed to grow its revenue by 3.7% quarter-on-quarter (QoQ), reaching ₹65,799 crore, supported by constant currency (CC) growth of 0.8%.

At the operational level, TCS delivered an EBIT of ₹16,565 crore, marking a 6.8% rise QoQ, with EBIT margins improving by 70 basis points to 25.2%.

The company’s board also declared a dividend of ₹11 per share, continuing its steady track record of shareholder payouts.

Beyond the financials, TCS announced two key strategic initiatives:

• The formation of a new AI-focused business entity to build 1 GW capacity AI datacenter infrastructure in India.
• The acquisition of 100% stake in ListEngage, expanding its reach in digital and CRM solutions.

These moves underline the company’s focus on future technologies and long-term scalability.

Company Details

Despite a temporary dip in the TCS share price, the company continues to hold its ground as a core player in India’s IT landscape.

TCS has outlined large-scale investments in areas like Artificial Intelligence, Cloud, and Cybersecurity, with the AI datacenter project expected to be developed over 5–7 years at an estimated $7 billion investment.

In recent quarters, the company has also emphasized a renewed focus on operational efficiency, reflected in improved EBIT margins and tighter cost structures.

The company’s workforce adjustment — a 3% reduction in headcount — has led to a more durable cost base, signaling a move toward better productivity and margin stability in upcoming quarters.

TCS Share Price Performance Snapshot

While the long-term fundamentals remain intact, the TCS share price performance has been under pressure recently:

• 1 Month: Down 2%
• 3 Months: Down 10%
• 6 Months: Down 6%
• Year-to-Date (YTD): Down 26%
• 1 Year: Down 28%
• 2 Years: Down 16%

This trend shows that while the stock faces near-term challenges, it continues to represent one of the largest and most consistent names in India’s IT industry.

Summary

In summary, the TCS share price slipped over 1% in the stock market today after the company reported its Q2 numbers.

Net profit fell by 3.8%, but operational margins expanded, and revenue grew 3.7% QoQ, reflecting solid cost management and efficiency improvements.

TCS also announced a ₹11 per share dividend, alongside two major moves — its AI datacenter project and ListEngage acquisition — signaling a long-term growth strategy focused on innovation and technology infrastructure.

Despite short-term softness, TCS remains one of India’s most valuable and globally recognized technology companies — adapting, investing, and evolving with the digital era.