Tata Consultancy Services (TCS) announced a five-year strategic partnership with Porsche AG and plans to acquire 100% of Porsche’s Germany-based consulting subsidiary MHP, subject to regulatory approvals, according to its September quarter filing. TCS will also transform Best Buy’s India Global Capability Center into an AI Capability Center. The company reported annualized AI revenue of $3.1 billion in Q2 2026, crossing 10% of its total revenue, per livemint.com.
Under the Porsche partnership, TCS will establish an AI Mobility Centre of Excellence to support innovation in manufacturing, engineering, operations, and customer experience. The acquisition of MHP will expand TCS’s consulting footprint in automotive and IT services. Meanwhile, Best Buy’s India GCC will transition to TCS and be enhanced with AI-driven retail and enterprise solutions, combining Best Buy’s domain knowledge with TCS’s technology and global delivery capabilities. TCS CEO K Krithivasan highlighted these deals as new transformation partnerships that industrialize AI at scale.
This move positions TCS to deepen its presence in the automotive and retail sectors through AI-focused initiatives. The acquisition of MHP follows a trend of IT firms expanding consulting arms to offer integrated digital transformation services. TCS’s AI revenue milestone of $3.1 billion underscores the growing contribution of AI to its business, aligning with industry peers investing heavily in AI capabilities to serve global clients across sectors including manufacturing, telecom, and healthcare.
TCS reported total revenue of ₹73,188 crore in the September quarter, with a quarterly total contract value of $9.6 billion, according to its exchange filing. The company’s next regulatory update will provide further details on the progress of the MHP acquisition and AI Capability Center transformation.