TCS Reports Marginal Profit Increase, Unveils Major AI Expansion Plans

Tata Consultancy Services (TCS), India's largest IT services company, has reported a marginal 1.4 percent increase in consolidated net profit for the July-September quarter, reaching Rs 12,075 crore. This uplift comes as operations revenue rose 2.39 percent to Rs 65,799 crore, according to TCS's latest regulatory filing.

The company, after announcing plans to lay off 12,000 employees in July, saw a headcount reduction of 20,000 by quarter's end. TCS took a Rs 1,135 crore charge for severance packages issued to departing mid-to-senior level employees. Despite the cuts, TCS plans aggressive expansion in artificial intelligence services.

TCS revealed a vision to dominate the AI technology service sector globally, announcing initiatives to train its workforce for this transition. Aiming for significant international revenue growth in FY26, assisted by new deals exceeding USD 10 billion, TCS seeks investment partners for a 1 GW AI data center in India with a budget over USD 6.5 billion.

(With inputs from agencies.)