Tata Consultancy Services Stock Update: Shares Rally 3% on Dividend News

Shares of Tata Consultancy Services (TCS) are witnessing a robust upswing in intraday trade, currently trading at ₹2,188.80, a significant jump of 3.00% from its previous close of ₹2,125.00. The IT bellwether opened the session higher at ₹2,156.90 and has scaled an intraday high of ₹2,201.90, while the low for the day stands at ₹2,155.00. The positive momentum is accompanied by active trading, with a volume of 749,972 shares exchanging hands so far, indicating keen investor interest in the stock. Reliance Industries Stock Update: Shares Edge Up on Venezuelan Oil Deal.

52-Week Context

Today's move places TCS shares at ₹2,188.80, significantly above its 52-week low of ₹1,976.80, recorded on January 7, 2026. However, the stock remains well below its 52-week high of ₹3,350.00, touched on March 2, 2026. While the stock is not testing its annual peaks, the current upward trajectory demonstrates a strong recovery from recent lows, pushing it further away from its annual trough.

Latest Developments

The primary catalyst driving TCS's impressive intraday performance appears to be its upcoming interim dividend, with today, October 13, 2026, marking the last day for investors to purchase shares to be eligible for the payout. The company has declared a second interim dividend of ₹12 per equity share for the financial year 2026-27, setting October 14, 2026, as the record date.

Adding to the positive sentiment are the recently announced strong second-quarter FY27 results. TCS reported a consolidated revenue of US$7.64 billion, reflecting a 2.4% year-on-year growth in USD terms. A key highlight from the earnings was the significant surge in annualized Artificial Intelligence (AI) revenue, which crossed US$3.1 billion, now accounting for over 10% of the total revenue, showcasing a nearly 20% sequential growth. The company's total contract value (TCV) stood robust at US$9.6 billion, underpinned by strategic wins, including a partnership with Porsche AG and the transformation of Best Buy's Global Capability Center in India into an AI Capability Center.

Furthermore, TCS management has addressed concerns regarding the recent US suspension of some IT firms, including itself, from the Permanent Labor Certification Program (PERM), which is related to green card applications. TCS stated that this move is unlikely to materially impact its workforce strategy or customer engagements, as its PERM applications have been in single digits over the past two years. The company also reiterated its strategic focus on AI, indicating that approximately 80% of its new hires will possess digital and AI-related skills, which is expected to support margin expansion. While the company did withhold quarterly variable pay for senior employees due to falling short of internal performance targets, this appears to be overshadowed by the broader positive news flow.

Outlook

Investors will be closely watching for sustained buying interest through the session, especially as the dividend eligibility window closes. The stock's ability to hold above the ₹2,180 mark will be a key indicator for continued momentum. Broader sector trends and any further clarity on global IT spending will also influence its performance in the near term.

Disclaimer: The information provided in this article is based on news reports and is not intended as investment advice. Investing in stocks involves risk. LatestLY advises its readers to consult with a financial advisor before making any investment decisions.

(The above story first appeared on LatestLY on Oct 13, 2026 09:24 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).