(
TCS), India’s largest software services exporter, has earmarked more than Rs 4,500 crore for setting up new campuses, leasing office spaces, and developing long-term infrastructure as part of a major expansion initiative across India, said senior leaders at international property consulting firms.The expansion will see the Tata Group company ramp up its physical footprint in key cities such as Bengaluru, Kolkata, Kochi, Hyderabad, Coimbatore, and Visakhapatnam, aligning with its expected growth in headcount and strong financial performance in FY25, these executives said.
As per lease and sale deed documents, in Bengaluru, TCS acquired 1.4-1.6 million sq ft from Sattva—Darshita Southern India Happy Homes for Rs 2,250 crore, and an additional 3.2 million sq ft from TRIL for Rs 1,625 crore. Both these properties are expected to add a total 25,000 seats in the city once operational.
TCS also leased 800,00 sq ft at 360 Degrees Business Park in Electronic City, bolstering its presence in India’s technology capital. It also leased office spaces in Coimbatore and Hyderabad.
“TCS’s expansion underlines the bullish outlook among top-tier IT firms on India’s talent ecosystem and delivery capabilities,” said an analyst at a leading property research firm. “These moves are already influencing leasing decisions of other tech giants, especially in cities like Coimbatore and Visakhapatnam where infrastructure momentum is picking up.”
In eastern India, TCS is strengthening its position in Kolkata with the development of 30 acres across its Sanchita Park and Bengal Silicon Valley Hub campuses. The project is expected to add 16,500 seats, of which 12,500 will be operational in 2025, with the remainder becoming available within three years.In Visakhapatnam, the company has secured 21.6 acres on a 99-year lease from the government, as part of its 2024 expansion schedule. In the southern city of Kochi, TCS has finalised a plan to buy 37 acres in the Kinfra Electronics Manufacturing Cluster for Rs 690 crore.Industry experts believe that TCS’s real estate push is both a market signal and a trendsetter.
“TCS’s aggressive leasing and acquisition strategy signals a strong revival in the commercial real estate market. This scale of investment—especially in both Tier 1 and Tier 2 cities—reaffirms that IT occupiers are recalibrating for long-term growth,” said a senior consultant at a global property advisory firm. “It is a clear indicator that the office demand cycle is turning a corner.”
“We are currently in our silent period and won’t be able to comment during this time,” said a company spokesperson in response to ET’s queries.
The expansion follows a stable year of financial performance by the Mumbai-based company. In FY25, TCS posted total consolidated revenue of $30.18 billion, a 4.2% rise in constant currency. Operating margin stood at 24.3% while net margin was at 19%.
Annual revenue from operations stood at ₹2.55 lakh crore, with net profit rising nearly 6% to ₹48,797 crore. TCS also reported free cash flows of ₹48,908 crore in FY25 and announced a record payout of ₹45,588 crore in shareholder dividends last fiscal.
TCS also resumed headcount growth in FY25, adding 6,433 employees to end the year with a total workforce of 607,979, reversing a rare decline seen in FY24. The company onboarded around 42,000 fresh graduates last fiscal while promoting over 110,000 employees. Attrition was steady at 13.3%. In the March quarter alone, 625 employees were added.
The ongoing real estate investments reflect the company’s belief in India’s long-term role as a global delivery hub and talent base.
“The fact that TCS is acquiring millions of square feet across multiple locations reflects sustained demand for Grade-A office space. It also suggests a strategic de-risking—diversifying beyond single-city reliance while preparing for large-scale hybrid and return-to-office models,” said the managing director of a corporate real estate solutions company, requesting anonymity.
TCS’ broad-based expansion is expected to significantly enhance its delivery capacity over the next two years. With major developments in metro cities and tier-2 hubs alike, the firm is preparing to meet rising demand from global clients while continuing to invest in infrastructure and talent across India.
