TCS Q2 Profit Rises 15% to ₹13,884 Crore, Declares ₹12 Dividend

Tata Consultancy Services (TCS) reported a consolidated net profit of ₹13,884 crore for the July–September quarter of FY27, up 15% from ₹12,075 crore a year earlier. India’s largest IT services company announced the results on Thursday, October 8, and declared a second interim dividend of ₹12 per share.

Revenue from operations rose 11.2% year-on-year to ₹73,188 crore, compared with ₹65,799 crore in the September quarter of FY26. On a sequential basis, revenue grew 1.3% from ₹72,275 crore, while net profit increased 4% from ₹13,349 crore in the June quarter. The topline came in marginally above the LSEG analyst estimate of ₹73,148 crore.

Margins, deals and AI revenue

TCS posted an operating margin of 24% and a net margin of 19% for the quarter. Net cash from operations stood at ₹14,190 crore, or 102.2% of net income, reflecting strong cash conversion.

The company signed deals with a total contract value (TCV) of $9.6 billion during the quarter. International revenue grew 1.2% sequentially in constant currency terms, with growth across banking, financial services and insurance (BFSI), manufacturing and technology services.

Annualised revenue from AI services rose to $3.1 billion from $2.6 billion in the previous quarter. AI services now account for more than 10% of the company’s total revenue, according to the results.

The sequential profit comparison is helped by a lower base. Profit in the June quarter had included an exceptional loss of ₹668 crore related to the settlement of a legal claim.

Workforce and management view

TCS had 5,98,056 employees on its rolls as of September 30. Last-twelve-month attrition in IT services stood at 13.3%.

Chief Executive Officer and Managing Director K Krithivasan said the company was pleased with the “broad-based growth in all our international markets” and most industry segments. He pointed to new engagements with Porsche and Best Buy, describing them as a new category of transformation partnerships.

Market reaction

TCS shares had closed 0.42% lower at ₹2,075.25 on the BSE on Thursday, ahead of the announcement. On Friday, the stock rose as much as 4.7% to an intraday high of ₹2,174 on the NSE and was among the top Nifty50 gainers in early trade.

The rally lifted other technology stocks, with the Nifty IT index gaining about 2.8% at the open. Despite the bounce, TCS shares remain well below their 52-week high of ₹3,336.70 and had fallen about 35.7% so far this calendar year before the results.

The ₹12 interim dividend will be paid on October 30 to shareholders whose names appear on the register as of the record date, October 14.

Investors will now track whether the $9.6 billion deal pipeline and the growing AI services book translate into faster revenue growth in the second half of FY27. Results from other IT majors in the coming weeks will offer a broader read on technology spending by global clients.