October 11, 2025

Tata Consultancy Services (TCS) is turning up the heat in the world of artificial intelligence, even when tech budgets are tight globally. The Indian software giant announced a massive plan: a $6-7 billion, 1 gigawatt AI datacentre, stepping into the future with bold ambitions to be the “world’s largest AI-led technology services company.” Coming to the money talk, TCS posted a net profit of Rs 12,075 crore for the July-September quarter, showing a slight 1.4% rise compared to last year but down 5.4% from the previous quarter. The drop is mainly due to a one-time severance payout of Rs 1,135 crore. Revenue played its part too, climbing 2.4% year-on-year and 3.27% quarter-on-quarter to Rs 65,799 crore. Yet, on a constant currency basis, revenue was almost flat. In US dollars, the income saw small growth after three quarters of sliding numbers. But wait, there’s more spice! TCS isn’t just keeping its workforce steady. It laid off 6,000 employees—about 1% of its roughly 600,000-strong team—as part of a plan to cut 2% by the end of this financial year. Overall, TCS saw its employee count shrink by 19,755 in this quarter, likely the biggest quarterly decline ever, bringing its staff number down to 593,314. Analysts had mixed feelings: while revenue was better than expected, profit missed the mark. An ET poll forecasted a net profit 1.6% lower and revenue 0.3% higher sequentially. In short, TCS is juggling growth, cost-cutting, and heavy investment in AI. With its eyes on leading the AI tech race, the company is ready to dazzle the tech world with its giant new datacentre and smart moves. Will TCS’s gamble pay off big? Only time will tell!

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Tags: Tcs, Artificial intelligence, Ai data centre, Q2 results, Layoffs, Tech spending,