Tata Consultancy Services (TCS) reported strong financial performance for the second quarter of financial year 2026-27, with consolidated net profit rising nearly 15% year-on-year to ₹13,934 crore.
The country’s largest IT services company reported net profit of ₹12,131 crore in the corresponding quarter a year earlier.
Revenue from operations also increased at a double-digit pace, climbing 11.22% year-on-year to ₹73,188 crore in Q2 FY27 from ₹65,799 crore in the year-ago period.
The results highlight continued growth across TCS’s international markets and several industry segments, while the company also reported a sharp expansion in its artificial intelligence-related business.
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Add INDYASTORY on GoogleTCS Q2 FY27 revenue and profit
TCS recorded consolidated revenue of ₹73,188 crore during the July-September quarter, compared with ₹65,799 crore in Q2 of the previous financial year.
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That represents year-on-year growth of 11.22%.
Net profit increased from ₹12,131 crore to ₹13,934 crore, translating into growth of 14.86%.
The company reported an operating margin of 24% during the quarter.
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TCS also generated ₹14,190 crore in net cash from operations, equivalent to 102.2% of net income.
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Artificial intelligence continued to become a more significant part of TCS’s business.
The company said its annualised AI revenue reached $3.1 billion in Q2 FY27, taking the contribution from AI-related business above the 10% threshold of total revenue.
The figure reflects growing demand for AI-led transformation services as enterprises look to deploy the technology across technology, operations and business processes.
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Add INDYASTORY on GoogleTCS said it is working with clients to develop repeatable platforms that can support AI deployment at scale.
TCS reports $9.6 billion TCV
The IT services major reported total contract value (TCV) of $9.6 billion for the quarter.
TCV is an important indicator for IT services companies because it reflects the value of contracts won during a period, although it does not translate directly into the quarter’s revenue.
TCS highlighted major new engagements with Porsche and Best Buy, describing them as a newer type of transformation partnership.
The company said these engagements are focused on creating repeatable value platforms and industrialising AI capabilities across client organisations.
CEO highlights broad-based international growth
K Krithivasan, CEO and Managing Director of TCS, said the company saw broad-based growth across its international markets and most industry segments during the quarter.
He pointed to the Porsche and Best Buy engagements as examples of a changing category of transformation deals in which TCS works with clients to build reusable platforms.
“We are pleased with the broad-based growth in all our international markets and most industry segments. This quarter we announced two unique deals with Porsche and Best Buy which represent a new category of transformation partnerships. Together with our clients, we are building repeatable value platforms that will industrialise AI at scale.”
The comments underline TCS’s strategy of combining traditional IT services with newer AI-led transformation work.
TCS workforce nears 6 lakh
TCS had a total workforce of 5,98,056 employees at the end of Q2 FY27.
The company reported trailing 12-month attrition of 13.3% in IT Services.
The workforce figure keeps TCS among the world’s largest technology employers and indicates the scale at which the company continues to deliver software, consulting and digital transformation services globally.
Attrition remains an important metric for large IT services companies because employee retention can influence delivery capacity, recruitment costs and margins.
TCS declares Rs 12 interim dividend
The TCS board also declared a second interim dividend of ₹12 per equity share for FY27.
The dividend relates to shares with a face value of ₹1 each.
According to the company, the record date is October 14, 2026, which will determine shareholders eligible to receive the dividend.
The dividend is scheduled to be paid on October 30, 2026.
TCS’s decision to return cash to shareholders alongside continued investment in its technology capabilities reflects its established capital-allocation approach.
TCS shares end slightly lower
Despite the positive earnings numbers, TCS shares ended Thursday’s trading session 0.42% lower at ₹2,075.25.
The stock performance indicates that investors were assessing the quarterly results alongside broader market conditions and expectations for the IT sector.
With global technology spending increasingly influenced by artificial intelligence, investors are likely to focus closely on the pace at which TCS converts AI demand and large contract wins into sustained revenue and earnings growth.
What the TCS results mean
The Q2 FY27 numbers point to continued momentum for TCS, with double-digit revenue growth, a nearly 15% increase in net profit and AI-related annualised revenue of $3.1 billion.
The company’s $9.6 billion TCV, 24% operating margin and strong operating cash generation also provide important indicators of the underlying business performance.
At the same time, the growing contribution from AI is becoming an increasingly important part of TCS’s long-term growth strategy.
As enterprises move from experimenting with generative AI towards larger-scale implementation, TCS is positioning itself around transformation programmes that can be deployed repeatedly across businesses.
For investors, the next focus will be whether that strategy can continue to support growth while maintaining margins and a large global workforce.
With a second interim dividend of ₹12 also announced, the Q2 FY27 results give shareholders a combination of earnings growth, strong cash generation and continued capital returns.
