Synopsis: Tata Consultancy Services Ltd partners with OpenAI to expand enterprise AI and infrastructure, boosting innovation and India’s global AI hub ambitions under the Tata Group.
Tata Consultancy Services Ltd, a global IT services leader, that delivers consulting, cloud, and AI-led digital transformation solutions worldwide, has partnered with OpenAI to develop enterprise AI platforms, agentic solutions, and more as follows.
With a market cap of almost Rs 9.75 lakh Crore, Tata Consultancy Services Ltd saw its stock hit an intraday high of Rs 2748 which is 2 percent higher than the previous close of Rs 2694.
News
TCS via Tata Group has announced a strategic partnership with OpenAI to drive AI-led innovation across enterprises, consumers, and social sectors. The collaboration includes deploying Enterprise ChatGPT, building industry-specific agentic AI solutions, joint go-to-market initiatives, and also includes multi-year effort to build AI infrastructure in India, starting with 100 MW capacity and scalable up to 1 GW to support future AI workloads.
Tata Consultancy Services is set to benefit as several thousand employees of Tata Group gain Enterprise ChatGPT access to boost productivity, while TCS leverages OpenAI Codex to enhance software engineering and jointly develops industry-specific Agentic AI solutions with OpenAI.
The partnership also emphasizes social impact by providing AI training and resources to Indian youth, developing toolkits for NGOs, and improving livelihoods. With scalable green-energy-powered infrastructure such as HyperVault and advanced data centers, the initiative aims to position India as a global AI hub while accelerating responsible AI adoption and workforce empowerment.
AI Products
Tata Consultancy Services offers AI tools like TCS AI WisdomNext, a unified GenAI interface for multi-LLM experimentation, and ignio, a cognitive automation platform that streamlines IT and business operations. Other offerings include TCS MasterCraft, TCS ADD, TCS Cognix, and TCS TwinX, expanding enterprise automation, analytics, and scenario modeling capabilities globally.
AI services Revenue and Segment Growth
TCS’s AI Services delivered annualized revenue of nearly $1.5 billion in Q2FY26, reflecting strong enterprise adoption. About 85 percent of clients generate over $20 million each, highlighting deep engagement from them. Additionally, this revenue number had witnessed a growth of 16.3 percent on QoQ basis.
Manufacturing led adoption with 109 percent growth, followed by Technology and Services at 42 percent, Consumer Business at 35 percent, Communication and Media at 20 percent, Energy, Resources and Utilities at 16 percent, BFSI at 8.5 percent, and Life Sciences and Healthcare at 5.7 percent, reflecting broad-based enterprise AI momentum across verticals.
The company reported annualized revenue of nearly $11 billion, led by strong AI services growth of 38 percent YoY, contributing the majority of overall expansion. Other segments posted moderate YoY growth, with interactive up 9 percent, cloud and cybersecurity rising 7 percent each, enterprise solutions growing 6.2 percent, and IoT and digital engineering increasing 2.6 percent.
Business & Financial Overview
Tata Consultancy Services (TCS) is a global IT services leader, delivering innovative, AI-led digital solutions. Founded in 1968 and part of the Tata Group, it serves industry-leading clients worldwide, leveraging engineering excellence, a skilled global workforce, and extensive delivery centers to create long-term value for stakeholders.
Tata Consultancy Services (TCS) partners with global AI leaders including Microsoft, Google Cloud, Amazon AWS, NVIDIA, and Qualcomm to deliver advanced AI, cloud, and generative AI solutions. It also supports enterprises such as JPMorgan and Virgin Atlantic in deploying AI-driven transformation across operations, customer experience, analytics, and intelligent automation.
In the latest quarter the company saw a YoY revenue growth of 5 percent, going from Rs 63,973 Cr in Q3FY25 to Rs 67,087 Cr in Q3FY26, while the QoQ went up by 2 percent from Rs 65,799 Cr in Q2FY26. The YoY Net Profits fell by 14 percent, going from Rs 12,444 Cr in Q3FY25 to Rs 10,720 Cr in Q3FY26, and the QoQ fell by 12 percent from Rs 12,131 Cr in Q2FY26.
The company has a 3 year sales CAGR of 10 percent, while the TTM is at 3 percent. The company’s 3 year profit CAGR is at 8 percent, while the TTM number is at 5 percent. Being in the Information Technology sector, the company also has a high ROCE of 65 percent, while the ROE is at 52 percent.
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