TCS revenue rises 13.9% as banking demand helps

Tata Consultancy Services reported a 13.9 percent year-on-year rise in revenue for the April-June quarter, helped by a weaker rupee and higher spending from banking customers.

The Mumbai-based IT services company said revenue reached 722.75 billion rupees, or $7.57 billion, for the three months ended June 30. Net profit rose 4.6 percent from a year earlier to 133.49 billion rupees.

TCS earns most of its revenue from Western clients and leads India’s $315 billion software services industry. Indian IT firms often bill clients in foreign currencies while paying many costs, including wages, in rupees.

Chief executive K Krithivasan said the results showed “continued growth momentum” despite geopolitical and macroeconomic headwinds. He said TCS delivered a $9.5 billion order book, including an AI-led transformation deal with SKF, and had scaled its AI business to a $2.6 billion annualised revenue run rate.

Indian software outsourcers including TCS have been investing in AI tools as they seek new business and cost savings. Last month, TCS chairman N Chandrasekaran warned the company would hire fewer people as it expects to add “half a million AI agents” to its workforce.