Full Breakdown
Tata Consultancy Services Q2 FY27 Results: Profit Rise, AI Gains and New Partnerships
By Drooid · · How we work
Core Financial Outcome
Tata Consultancy Services Ltd. (TCS) posted consolidated net profit of INR13,884 crore for the quarter ended September 30, 2026, a year-on-year increase of roughly 15 % and a sequential rise of 4 % from the June quarter. Consolidated revenue from operations was INR73,188 crore, up 11.2 % YoY and 1.3 % QoQ. The company recorded an operating margin of 24 % and a net margin of 19 %. Total contract value for the quarter stood at $9.6 billion. The board declared a INR12 per-share interim dividend, with the record date set for October 14, 2026 and payment scheduled for October 30, 2026.
Strategic Partnerships and Deal Wins
TCS announced two flagship “transformation partnerships.” A five-year alliance with Porsche AG includes an AI Mobility Centre of Excellence and the acquisition, through a subsidiary, of MHP Management- und IT-Beratung GmbH. The deal is valued at €320 million for the acquisition and a €1.25 billion partnership commitment, subject to regulatory approval.
TCS also secured an agreement to transition Best Buy’s Global Capability Center (GCC) in India to TCS, converting it into an AI Capability Center (AICC).
Other wins disclosed include engagements with Honeywell Technologies, Aareal Bank, Vodafone Business, and the Dubai Gold & Commodities Exchange.
AI Revenue Expansion
Annualised AI-related revenue crossed the $3 billion threshold, reaching $3.1 billion—more than 10 % of total topline, up from $2.6 billion in the prior quarter.
Workforce and Learning Investment
At quarter-end the employee base stood at 598,056, reflecting a net addition of 4,258 staff. Last-twelve-month attrition in IT services remained stable at 13.3 %. Learning hours rose 17 % sequentially to 17.1 million, underscoring the firm’s focus on upskilling.
Official Statements & Responses
Chief Human Resources Officer Sudeep Kunnumal emphasized the firm’s commitment to a “future-ready workforce” through upskilling and talent acquisition, citing the 17 % rise in learning hours.
Conflicting Reports & Gaps
- Net profit: Most filings list INR13,884 crore; one outlet reported INR13,934 crore.
- Revenue: Primary figure is INR73,188 crore; some previews cited INR73,110 crore or INR73,225 crore.
- YoY profit growth: Percentages range from 14.86 % to 15 % across sources.
- AI revenue proportion: Described as “over 10 %” versus “10 %.”
These variations stem from differing reporting conventions (reported vs constant-currency, inclusion of exceptional items) and analyst forecasts versus actual results.