Tata Consultancy Services532540Information technology services
TCS CEO K Krithivasan discussed margin pressures from AI-related investments and rising external consultant costs in the company's quarterly earnings interview
- Currency tailwind this quarter
- 10 basis points
- External consultant fees
- 5,234 crore rupees
- External consultant fees share of revenue
- 7.1 percent
- Prior quarter consultant fee share
- 6.4 percent
- Year ago consultant fee share
- 5.2 percent
Heard on business television between 16:11:41 - 16:14:41 IST.
- Margins did not expand despite expected currency tailwind and favorable wage base comparison from Q1.
- CEO K Krithivasan attributed the margin miss to investments in AI partnerships, M&A-related expenses, and hiring top talent, some ahead of immediate project needs, leading to a bench build-up.
- Currency tailwind was only about 10 basis points in the quarter.
- He said margins are expected to recoup as investments taper and cost-efficiency measures are implemented in coming quarters.
- Fees to external consultants rose to 5,234 crore rupees, or 7.1% of revenue, up from 6.4% in the previous quarter and 5.2% a year ago, explained as costs for short-term business associates/subcontractors hired where TCS lacks local supply.
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Source: Live TV News Channel · 9 Oct 2026
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