MUMBAI:  Tata Consultancy Services (TCS), India’s largest IT services firm, reported a 4.99 per cent increase in its net profit for the September quarter, reaching Rs11,909 crore, despite a narrowing profit margin.

At its board meeting held on Thursday, TCS declared a second interim dividend of Rs10 per equity share with a face value of Rs1 each.

The company had posted a net profit of Rs11,342 crore in the same period last year and Rs12,040 crore in the previous June quarter.

Revenue

Revenue for TCS grew by 7.06 per cent year-on-year to Rs64,988 crore, up from Rs60,698 crore, and slightly higher than the Rs63,575 crore reported in the previous quarter.

The company’s operating profit margin narrowed to 24.1 per cent, down by 0.2 per cent from the same period last year and 0.6 per cent from the April-June quarter.

TCS increased its workforce by 5,726 employees during the quarter, bringing the total employee count to 6,12,724. The net addition for the first half of the current fiscal year crossed 11,000.

“We observed continued caution in the market, similar to the last few quarters,” said CEO and MD K. Krithivasan. He noted that the company’s largest segment – banking, financial services, and insurance (BFSI) – showed signs of recovery, with a 0.1 per cent revenue increase compared with last year.

Manufacturing

The manufacturing sector, which contributes less than 9 per cent of TCS’s revenue, was one of the fastest-growing, with a 5.3 per cemt rise.

Regionally, North America, a key market for TCS, saw a 2.1 per cent decline in revenue, while India posted the highest growth, surging 95.2%.

CFO Samir Seksaria highlighted the company’s strategic investments in talent and infrastructure during the quarter. Chief Human Resources Officer Milind Lakkad stated that trainee onboarding is progressing as planned, with the campus hiring process for FY26 also underway.

TCS shares closed 0.56 per cent lower at Rs4,228.40 on the BSE, while the benchmark Sensex index gained 0.18 per cent.