Dayakar, a TDP veteran, and Goud joined the TRS in the presence of its president and Chief Minister K Chandrasekhar Rao here tonight.
A founding member of the TDP, Dayakar expressed anguish over having to quit the Chandrababu Naidu-led party, which he said has lost the people's trust in the newly created state.
"I have been in the party (TDP) for the last 35 years. I was a member of the committee that was formed to prepare TDP's flag. I joined TDP when I was 25.
"Me and Prakash Goud joined TRS in the presence of Chief Minister as justice can be done to Telangana people only by TRS," Dayakar told reporters.
The five-time MLA said he apologises to the TDP activists "with folded hands" to understand his decision taken under inevitable circumstances.
Dayakar said he had earlier criticised the TRS and the Chief Minister as per TDP's direction. A public meeting would be organised where he would formally join TRS along with his supporters.
Goud, MLA from Rajendra Nagar in Hyderabad, said he joined the TRS in the interest of his constituency's development.
Goud, president of Ranga Reddy district unit of TDP, said he did not have any problem in the Naidu-led outfit.
With Dayakar and Goud joining the TRS, the total number of TDP MLAs, who switched loyalty to the ruling party in Telangana, rose to nine. TDP won 15 Assembly seats in the 2014 Assembly elections, which were swept by the Chandrasekhar Rao-headed TRS.
The "shocking" development came within two days of a TDP MLA from Qutbullapur seat K P Vivekananda switching loyalty to the K Chandrasekhar Rao-led party.
TDP chief Naidu tonight suspended Dayakar, Goud and another MLA for "anti-party activities".
In a statement issued in Vijayawada, Naidu said Dayakar, Goud and K P Vivekananda (the third MLA who joined TRS two days ago) were suspended from the TDP with immediate effect.
In the 119-member Telangana Assembly, the TRS has 76 MLAs while 15 are from Congress.
Dayakar's exit is a jolt to the TDP as he has a strong base in Warangal district. He has been an MLA for four terms and had also won as an MP in a by-election in 2008. He was also a member of the TDP politburo.
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