TCS Q2 margin dips to 23.98%; recovery expected ahead

TCS Q2 EBIT margin fell to 23.98%, missing estimates of 24.38%, due to AI investments and talent hiring. Net profit rose 4.38% to ₹13,934 crore. CEO Krithivasan expects margins to recover toward the 26-28% target as bench strength gets utilized and AI revenue, up 19% QoQ, exceeding $3.1 billion annualised, continues to grow.