TCS Q2 Results: Net Profit Rises 15 per cent YoY To Rs 13,884 Crore, Rs 12 Dividend Declared

Tata-consultancy-services-ltd-132540">Tata Consultancy Services (TCS) announced its Q2 FY27 results on October 8, 2026, reporting consolidated net profit of Rs 13,884 crore, up 4 per cent quarter-on-quarter from Rs 13,349 crore in Q1 FY27 and 15 per cent year-on-year from Rs 12,075 crore. The company also declared a second interim Dividend of Rs 12 per share.

Revenue Rises 1.3 per cent QoQ

TCS reported consolidated revenue of Rs 73,188 crore for the September quarter, rising 1.3 per cent sequentially and 11.2 per cent year-on-year. In constant currency terms, revenue increased 0.5 per cent quarter-on-quarter.

The growth was supported by its international business, with international revenue increasing 1.2 per cent sequentially in constant currency. BFSI revenue grew 2.5 per cent, while Manufacturing and Technology & Services each grew 3.1 per cent sequentially in constant currency.

AI Revenue Crosses USD 3 Billion

AI continues to be an important part of TCS' business. The company's annualised AI revenue rose to USD 3.1 billion in Q2 FY27 from USD 2.6 billion in the previous quarter.

TCS also secured USD 9.6 billion in total contract value (TCV) during the quarter, slightly higher than USD 9.5 billion in Q1 FY27 but below the USD 10 billion recorded in the year-ago quarter.

Margins Remain Stable

The company reported an operating margin of 24 per cent and a net margin of 19 per cent during the quarter.

TCS had reported an operating margin of 24 per cent in Q1 FY27 as well, indicating that the margin level remained broadly stable sequentially.

Employee Base Crosses 5.98 Lakh

TCS ended the quarter with a workforce of 598,056 employees, while trailing 12-month IT Services attrition stood at 13.3 per cent. The employee base increased from 593,798 at the end of Q1 FY27.

The increase in headcount comes as the company continues to build capabilities around AI, cloud and other technology services.

Rs 12 Interim Dividend Announced

Along with the results, the TCS board declared a second interim dividend of Rs 12 per equity share for FY27. The record date has been fixed for October 14, 2026.

This follows the Rs 12 interim dividend paid for Q1 FY27.

What The Q2 Numbers Show

TCS' September quarter brought a sequential improvement in both revenue and profit, while AI-related revenue continued to grow strongly. Contract wins remained healthy, although TCV was below the level recorded in the year-ago quarter.

With TCS being among the first major Indian IT companies to report Q2 FY27 earnings, its results also provide an early look at technology spending, demand and the impact of AI-led changes across the sector.

Disclaimer: This article is for informational purposes only and not investment advice.