TCS Reports Strong Profit Growth In Q2 FY27
Tata Consultancy Services (TCS), India’s largest IT services company, has reported a 15% year-on-year increase in consolidated net profit to Rs 13,884 crore for the July-September quarter of FY27.
The company had recorded a net profit of Rs 12,075 crore in the corresponding quarter last year. Revenue from operations increased 11.2% to Rs 73,188 crore, compared with Rs 65,799 crore in the year-ago period.
The results reflect continued demand across several international markets and growing contributions from artificial intelligence services, even as traditional IT spending remains under pressure.
Revenue Growth Remains Modest Sequentially
Although revenue increased by more than 11% compared with last year, growth was slower when measured against the preceding quarter.
TCS reported revenue of Rs 72,275 crore in the June 2026 quarter, meaning revenue rose approximately 1.3% sequentially in reported terms.
In constant currency terms, which exclude the impact of exchange-rate fluctuations, revenue increased just 0.5% compared with the previous quarter. This was the weakest sequential growth for a September quarter in three years.
The numbers highlight the challenge facing India’s IT services industry as businesses remain cautious about discretionary technology spending.
AI Revenue Crosses $3 Billion
Artificial intelligence continues to be an important growth area for TCS.
The company’s annualised AI revenue reached $3.1 billion during the September quarter, up from $2.6 billion in the preceding quarter. AI now accounts for more than 10% of the company’s overall revenue on an annualised basis.
TCS is expanding its AI-related offerings to help clients modernise enterprise systems, automate business processes and deploy AI-powered solutions.
However, the rapid growth of AI services is also changing the traditional IT services business model. Some clients are seeking productivity improvements that could reduce spending on conventional software development and maintenance services.
Banking And Manufacturing Lead Growth
The banking, financial services and insurance (BFSI) segment grew 2.5% sequentially in constant currency terms.
Manufacturing and Technology and Services each recorded sequential growth of 3.1%, making them important contributors to the quarter’s performance.
TCS also reported total contract value of $9.6 billion in new deal wins. While this was slightly higher than the $9.5 billion recorded in the June quarter, it remained below the $10 billion reported a year earlier.
Workforce Crosses 5.98 Lakh Employees
TCS added 4,258 employees on a net basis during the quarter, taking its total workforce to 5,98,056 as of September 30, 2026.
The company’s last-twelve-month attrition rate in IT services stood at 13.3%.
The company also announced a second interim dividend of Rs 12 per equity share for FY27. The record date is October 14, while payment is scheduled for October 30.
Porsche And Best Buy Deals Expand AI Opportunities
During the quarter, TCS announced a five-year strategic partnership with Porsche AG and an agreement to transition Best Buy’s Global Capability Centre in India into an AI Capability Centre.
These partnerships reflect the company’s strategy of combining traditional IT services with AI-led business transformation.
Summary
TCS reported a 15% year-on-year rise in Q2 FY27 net profit to Rs 13,884 crore, while revenue increased 11.2% to Rs 73,188 crore. Annualised AI revenue reached $3.1 billion, crossing 10% of overall revenue. However, constant-currency revenue grew only 0.5% sequentially. TCS also added 4,258 employees and announced a Rs 12 interim dividend per share.