Tata Consultancy Services (TCS) is prioritising the development of secure AI infrastructure and plans to establish India’s first AI-focused data centre, signalling a major shift towards AI-driven operations for global enterprises.
Key Points
- TCS is scaling its ‘Human+AI’ operating model, generating significant revenue from AI services.
- AI is fundamentally changing how enterprises invest, manage risk, and serve stakeholders.
- TCS plans to build India’s first AI-focused data centre with high rack density.
- India is emerging as a strategic destination for AI infrastructure due to global constraints.
- TCS reported a jump in net profit and signed new deals, driven by North America and the BFSI sector.
Artificial intelligence is no longer just a technological layer but is rapidly becoming the operating foundation and “infrastructure of intelligence” for enterprises globally, Tata Consultancy Services (TCS) Chairman N Chandrasekaran said.
In his letter to shareholders in the company’s Annual Report for 2025-26, Chandrasekaran noted that TCS has scaled up the execution of its ‘Human+AI’ operating model, generating an annualised revenue of USD 2.3 billion in AI services and USD 11.5 billion in new-age services, including cloud, data, and cybersecurity.
AI’s Impact on Enterprise Operations
He noted that AI will fundamentally influence how enterprises invest, organise supply chains, manage risk, and serve stakeholders, with generative and agentic AI now entering a new phase of growth as customers decisively move from experimental pilots to scaled deployments and embed AI into core functions.
Looking ahead, the Chairman outlined a comprehensive future strategy centered on establishing secure, resilient, and sovereign AI infrastructure.
TCS’s AI Infrastructure Strategy
A key priority for the IT major, he said, will be building an AI operating system tailored for industries to accelerate the deployment of agentic AI solutions.
Furthermore, TCS plans to construct India’s first AI-focused data centre featuring a rack density greater than 160 KW, while strengthening its ‘Infrastructure to Intelligence’ offerings through expansive partnerships with hyperscalers, frontier AI firms, and industrial OEMs.
India as a Strategic AI Hub
Highlighting global macroeconomic shifts, Chandrasekaran noted that as global constraints on power, compute, and geography intensify, India is emerging as a strategic ‘+1’ destination for AI infrastructure.
Financial Performance and Growth
TCS reported a 12.22 per cent jump in its March quarter net profit to Rs 13,718 crore, supported by expanded profit margins.
For fiscal year 2025-26, its profit after tax increased 1.35 per cent to Rs 49,210 crore compared to Rs 48,553 crore in FY25.
The company added 2,356 jobs in Q4 to take the overall number of employees to 584,519 as of March 31, 2026, marking the first quarter of net addition after two consecutive quarters of decline.
It signed new deals of USD 12 billion in the three months to March, led by North America at USD 5.4 billion and the banking, financial services and insurance business at USD 2.8 billion.
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