Shares of TCS opened 3% higher after the bell, only to sink to ₹2,077 by close, slipping 36% YTD. The company posted a net profit of ₹13,884 crore and revenue of ₹73,188 crore, with AI top‑line surpassing $3 billion for the first time.
Constant‑currency revenue grew 0.5% YoY, trailing the CNBC‑TV18 poll by 0.1 percentage point. Sequentially, revenue jumped 1.3%. In U.S. dollars, the firm tallied $7,642 million, a touch below the $7,657 million consensus.
EBIT rose to ₹17,553 crore, marginally shy of the ₹17,738 crore estimate, and the EBIT margin held at 24% versus the 24.2% forecast. Analysts note that the 170‑basis‑point wage‑hike reversal is being reinvested into AI and data‑center capabilities, keeping margins flat.
Deal wins hit $9.6 billion, squarely in the middle of the $9–$10 billion range projected by the street. The headline deal, the €320 million acquisition of Porsche’s MHP unit, is part of a €1.5 billion partnership that will scale TCS’s AI offerings across mobility and SDV platforms, with analysts warning of a 50‑60 basis‑point margin hit in the immediate post‑deal period.
With the stock already 36% lower this year, investors are watching whether the AI push will translate into higher earnings next quarter. The company is yet to issue Q3 guidance, but expectations are for a steady EBIT margin and a modest upside from the MHP integration.