TCS rallies after revenue beat, AI business crosses $2.6 billion

Shares of Tata Consultancy Services rose on Friday as better-than-expected quarterly revenue and strong AI growth lifted sentiment for India’s IT sector.

TCS stock was up 1.8% at ₹2,086 in morning trade in Mumbai. The gains came after a 4% jump the previous day and helped push the Nifty 50 1.1% higher. The Nifty IT index gained about 2%.

The company reported a revenue beat for the quarter, supported by a $9.5 billion order book and increasing demand for AI services. TCS said its annualised AI revenue has crossed $2.6 billion.

The results have raised hopes that the worst of the slowdown for Indian IT firms may be over. Large deal wins and AI-led contracts are expected to drive growth in the coming quarters.

TCS is India’s top software services exporter and a key indicator for the sector. Its upbeat numbers gave a lift to other IT stocks as investors bet on a gradual recovery in tech spending globally.