Tata Consultancy Services exceeded revenue expectations in Q2, driven by growth in the banking, financial services, and insurance sector. Optimism surrounds India’s IT sector amid economic uncertainties, with TCS CEO expressing confidence in improved growth momentum. Sales rose 2.4% to 657.99 billion rupees, beating estimates.

However, profit increased by 1.4% to 120.75 billion rupees, missing analysts’ estimates due to severance costs. TCS plans to cut 2% of its workforce in fiscal 2026, affecting middle and senior management roles. The company saw a significant decline in employee count in the quarter, the steepest ever.

TCS reported total order bookings of $10 billion in Q2, up from the previous quarter. The company plans to establish a new business entity to develop AI infrastructure, including a 1 GW data center in India. Analysts at Jefferies anticipate this move could make TCS one of the Top-5 data center operators in India with a potential capex of US $5bn.

Read more at Yahoo Finance: India’s TCS beats quarterly revenue estimates, sees better growth in H2