Tata Consultancy Services (TCS) reported a 15% year-on-year increase in consolidated net profit to Rs 13,884 crore for Q2 FY27, as its AI business continued to grow and demand for technology services remained strong.
The IT services major also declared a second interim dividend of Rs 12 per share for FY27. Revenue from operations increased 11.2% year-on-year to Rs 73,188 crore for the quarter ended September 30, 2026.
The results show TCS continuing to invest in artificial intelligence, expand its global business and add employees after several quarters of workforce changes.
- Revenue and Profit Continue to Grow
TCS reported revenue of Rs 73,188 crore in Q2 FY27, compared with Rs 65,799 crore in the same quarter last year. Revenue was also up 1.3% from Rs 72,275 crore in Q1 FY27.
Net profit increased from Rs 12,075 crore a year ago to Rs 13,884 crore. On a quarter-on-quarter basis, profit rose around 4% from Rs 13,349 crore.
The company reported an operating margin of 24% and a net margin of 19%. Net cash generated from operations stood at Rs 14,190 crore, equal to 102.2% of net income.
- AI Revenue Crosses $3 Billion
Artificial intelligence has become a major growth area for TCS. Its annualised AI revenue reached $3.1 billion in Q2 FY27, crossing 10% of the company's overall revenue.
TCS said demand is increasing for AI-based solutions, enterprise technology upgrades and autonomous business services.
The company is working to help businesses use AI across their operations, including software development, application management and business processes.
During the quarter, TCS also launched an autonomous engineering lab powered by NVIDIA in Bengaluru to develop AI-led solutions for sectors such as mobility and manufacturing.
- Major Deals Strengthen Global Business
TCS reported a total contract value (TCV) of $9.6 billion during the September quarter.
Banking, financial services and insurance (BFSI), manufacturing, and technology and services were among the key contributors to business growth.
In constant-currency terms, BFSI revenue grew 2.5% sequentially, while manufacturing and technology and services each recorded 3.1% growth.
The company also announced several important business developments.
- Porsche AG: TCS entered into a five-year strategic partnership with the German automotive company. It also agreed to acquire 100% of MHP Management- und IT-Beratung GmbH, Porsche's management and IT consulting subsidiary, subject to regulatory approvals.
- Best Buy: TCS agreed to take over the US retailer's Global Capability Center in India and transform it into an AI Capability Center, combining retail knowledge with technology, engineering and AI capabilities.
These agreements could support TCS as global businesses increase their focus on AI and digital transformation.
- TCS Adds More Than 4,000 Employees
TCS added 4,258 employees on a net basis during Q2 FY27, taking its total workforce to 598,056.
This marked the third consecutive quarter of net headcount growth, following an addition of around 9,279 employees in Q1 FY27.
The company's IT services attrition rate over the last 12 months declined to 13.3%, compared with 13.6% in the previous quarter.
TCS also increased its focus on employee training. Learning hours rose 17% sequentially to 17.1 million during the quarter as the company continued to build skills in AI and other important technology areas.
- International Markets Show Growth
TCS recorded sequential growth across most international markets in constant-currency terms.
North America grew 0.4%, the UK increased 3.5%, Continental Europe rose 0.4%, and Asia Pacific grew 2%.
India accounted for 5.5% of the company's revenue mix. Revenue from India declined 10.3% sequentially but grew 6% year-on-year in constant-currency terms.
The company also highlighted cybersecurity as a major client priority and said its Human+AI Services Autonomy model for application management services received strong customer rankings.
- TCS Declares Rs 12 Interim Dividend
The TCS board declared a second interim dividend of Rs 12 per equity share, with a face value of Rs 1 per share.
The record date is October 14, 2026, and the dividend is scheduled to be paid on October 30, 2026.
This follows the Rs 12 per-share interim dividend paid for the June quarter. TCS continues to return cash to shareholders through interim dividends during the year and a final dividend at the end of the financial year.
Key Numbers
- Rs 13,884 crore - Q2 FY27 net profit, up 15% year-on-year
- $3.1 billion - Annualised AI revenue
- $9.6 billion - Total contract value in Q2 FY27
