business · Business / IT / Earnings / Q2 FY27
TCS Q2: revenue ₹73,188 crore (+11.2% YoY), net profit ₹13,884 crore; annualised AI revenue $3.1 billion; ₹12 dividend
Tata Consultancy Services filed its September-quarter numbers with the exchanges on Thursday. Revenue rose to ₹73,188 crore, net profit was ₹13,884 crore, and the company said annualised AI revenue crossed $3.1 billion — more than 10% of revenue. It also flagged transformational deals with Porsche AG and Best Buy, and declared a ₹12 per share dividend.
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Tata Consultancy Services — Q2 FY27 (quarter ended 30 Sep 2026), Ind-AS & IFRS ₹, company press release filed with NSE/BSE on 8 Oct:
| Metric | |
|---|---|
| Revenue | ₹73,188 crore (+1.3% QoQ, +11.2% YoY INR; +0.5% QoQ CC) |
| International revenue | +1.2% QoQ CC |
| Net profit | ₹13,884 crore · net margin 19.0% |
| Operating margin | 24.0% |
| TCV (total contract value) | US$ 9.6 billion |
| Annualised AI revenue | US$ 3.1 billion (crosses 10% of revenue) |
| Net cash from operations | ₹14,190 crore (102.2% of net income) |
| Headcount | 598,056 · LTM attrition (IT Services) 13.3% |
| Dividend | ₹12 per share · record date 14 Oct · payment 30 Oct |
Deal headlines in the same release: five-year partnership with Porsche AG plus acquisition of 100% of Porsche’s Germany-based consulting subsidiary MHP (partnership and acquisition subject to regulatory approvals); agreement to transition Best Buy’s India GCC to TCS as an AI Capability Center.
Takeaway: rupee growth (+1.3% QoQ) ran ahead of constant-currency growth (+0.5% QoQ), so sequential momentum is soft; the company's own emphasis is on AI revenue and large deals. Not investment advice.
Analysis
Where growth came from
In constant currency, BFSI (+2.5% QoQ), Manufacturing (+3.1%), and Technology & Services (+3.1%) led domain growth. Consumer Business was negative QoQ (−0.7% CC). By geography, UK (+3.5% QoQ CC) and Asia Pacific (+2.0%) outpaced North America (+0.4%); India revenue fell 10.3% QoQ CC in the quarter’s mix.
CEO K. Krithivasan said growth was “broad-based” across international markets and most industry segments, and pointed to the Porsche and Best Buy deals as a “new category of transformation partnerships.”
AI and cash
The company put annualised AI revenue at $3.1 billion in Q2 FY27 — above 10% of revenue on its own framing. Cash conversion stayed high: net cash from operations at 102.2% of net income. Workforce crossed 598,000; learning hours rose 17% sequentially to 17.1 million, per the CHRO commentary in the release.
What to watch
- Whether CC growth re-accelerates in Q3 as deal conversion lands
- Margin path with MHP / Best Buy integration costs (if and when deals close)
- Share reaction into the 14 Oct dividend record date
- Peer Q2 prints from other large Indian IT names later this month
Not investment advice. No politics.
Sources
- Tata Consultancy Services — Press release “International Growth and Strategic Wins Underpin TCS’ Q2”, filed 8 Oct 2026 — https://nsearchives.nseindia.com/corporate/TCS_CORPCS_08102026154325_PressReleaseletter.pdf
- NSE — Corporate announcements (TCS) — https://www.nseindia.com/companies-listing/corporate-filings-announcements
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