TCS expands Kingfisher AI partnership, reports strong Q2 growth

Tata Consultancy Services (TCS) announced a deepened partnership with UK retailer Kingfisher Plc, focusing on AI-powered transformation and establishing a joint ‘Innovation and Automation Office’ to enhance operational efficiency. This collaboration leverages TCS’s expertise in digital engineering and AI.

TCS reported strong Q2 FY26 financial performance, with revenue growing 0.8% sequentially in constant currency, reaching ₹65,799 crore. Operating margin improved to 25.2%, excluding a one-time severance. The company secured TCV of $10 billion, a 16% year-on-year increase, including a mega deal with Tryg Insurance.

TCS is also pursuing an ambitious strategy to become the world's largest AI-led technology services company. The board approved creating a new subsidiary for a sovereign AI datacenter with up to 1 Gigawatt capacity, to be built over five to seven years through equity and debt financing, targeting Indian enterprises, hyperscalers, and government needs.