Summary:
TCS reported 11.2% year-on-year revenue growth to ₹73,188 crore and 14.9% net profit growth to ₹13,884 crore in Q2 FY27. AI revenue crossed 10% of total revenue, while operating margins, deal wins, dividend details and share-price movement remain key highlights.
What were TCS's Q2 FY27 results?
India’s largest IT services company Tata Consultancy Services (TCS) reported a consolidated revenue growth of 11.2% year-on-year (YoY) to ₹73,188 crore for the second quarter of FY27 on Monday. Shareholder attributable net profit climbed 14.9% to ₹13,884 crore. The results, announced on 8 October 2026, also set a milestone of artificial intelligence (AI) revenue crossing 10% of total revenue for the first time.
TCS Q2FY27 Financial Results
Q2FY27 revenue stood at ₹73,188 crore versus ₹65,799 crore in Q2FY26, driven by growth across key business segments and international markets. Revenue increased 1.3% sequentially and 2.8% YoY and 0.5% QoQ at constant currency terms.
Net profit attributable to shareholders increased to ₹13,884 crore, up 14.9% YoY from ₹12,075 crore in the same quarter of last year. Profit rose around 4% sequentially, reflecting improvement in earnings despite sustained pressure on operating margins.
The company’s operating margin was unchanged at 24% versus the prior quarter. However, it dipped from 25.2% in Q2FY26, a contraction of 120 basis points YoY. TCS meanwhile reported total contract value (TCV) of $9.6 billion during the quarter, showing continued deal activity.
AI Revenue Tops 10% for the First Time
A major highlight was the performance of TCS’s artificial intelligence business during the quarter. The AI-related revenue crossed the 10% mark of the company’s total revenue for the first time, a sign of growing demand for AI-led technology services.
Annualized AI revenue was $3.1 billion, compared with $2.6 billion in Q1FY27 and $1.5 billion in Q2FY26. That’s about 19.2% sequential growth and revenue is more than doubled YoY.
TCS continues to enhance its capabilities in AI for enterprise automation, software development, cloud transformation and business operations. The rising contribution from AI is a sign of a slow shift in the company’s revenue mix as enterprises ramp up spending on automation and new technologies.
Banking, Manufacturing & International Markets Fuel Growth
BFSI (Banking, Financial Services & Insurance) was the only business segment to show sequential growth on constant currency (2.5%) basis. Manufacturing and Technology & Services both grew by 3.1% q/q.
Geographically, the UK was up 3.5% sequentially and Asia Pacific was up 2%. North America, which accounts for almost half of TCS’s revenue, saw a modest 0.4% increase, reflecting slower business growth in the company’s largest market.
During the quarter, TCS announced a five-year strategic partnership with Porsche and proposed acquisition of its Germany-based consulting subsidiary, MHP, subject to regulatory approvals. The company also signed an agreement to establish an AI focused capability center at Best Buy’s Global Capability Center in India.
Dividend declaration and market outlook
TCS announced a second interim dividend of Rs 12 per equity share for FY27. The record date has been set for October 14, 2026 and the dividend is payable on October 30, 2026.
TCS shares rose nearly 4% in early trade on October 9, after the earnings, while the Nifty IT index rose about 2.7%.
The company’s ability to convert its deal pipeline to revenue, sustain operating margins and maintain growth in AI-related services will determine its future performance. “Demand trends in North America and technology spend globally will remain key areas of focus.”
