TCS Q2 results: IT major posts 7.6% YoY rise in profit at ₹13,884 crore, revenue rises 11.2%

Tata Consultancy Services Ltd (TCS) on Thursday released its earnings for the second quarter ended September 30, 2026, reporting a 7.6% year-on-year (YoY) increase in consolidated net income to ₹13,884 crore for the September quarter, compared with ₹12,904 crore in the year-ago period. On a sequential basis, net income rose 0.3% from ₹13,849 crore in the June quarter, according to the exchange filing.

Revenue increased 11.2% (YoY) to ₹73,188 crore in Q2 FY27 from ₹65,799 crore in the corresponding quarter last year. Sequentially, revenue grew 1.3% from ₹72,275 crore in Q1 FY27.

During the quarter under review, operating income rose 6% (YoY) to ₹17,553 crore from ₹16,565 crore in the year-ago quarter, while it increased 1.4% sequentially from ₹17,317 crore.

Income before taxes stood at ₹18,638 crore, up 8.3% (YoY) from ₹17,203 crore. On a quarter-on-quarter basis, pre-tax income increased marginally by 0.1% from ₹18,612 crore.

The IT major's net profit margin stood at around 19% in Q2 FY27, compared with 19.6% in the year-ago quarter and 19.2% in Q1 FY27.

“This quarter we announced two unique deals with Porsche and Best Buy which represent a new category of transformation partnerships. Together with our clients, we are building repeatable value platforms that will industrialize AI at scale,” said K Krithivasan, Chief Executive Officer and Managing Director.

During the July-September quarter, artificial intelligence-related revenue crossed the $3 billion milestone, representing over 10% of total company revenue. The company reported a total contract value (TCV) of $9.6 billion for Q2 FY27.

Board declares 2nd interim dividend of ₹12 apiece

The board of TCS also declared a second interim dividend of ₹12 per equity share of ₹1 each for the financial year 2026-27.

“The second interim dividend shall be paid on Friday, October 30, 2026, to the equity shareholders of the Company, whose names appear on the Register of Members or in the records of the Depositories as beneficial owners of the shares as on Wednesday, October 14, 2026, which is the Record Date fixed for this purpose,” the company said in its release.

As of September 30, 2026, TCS' employee base reached over 598,000, while attrition remained stable at 13.3%. “We continue to build a future-ready workforce through upskilling our employees and hiring top talent. Investments in learning and critical skills drove a 17% sequential increase in learning hours to 17.1 million,” said Sudeep Kunnumal, Chief HR Officer, TCS.

Ahead of its Q2 results, TCS shares ended 0.42% lower at ₹2,075.25 on the BSE, with a market capitalisation of ₹7.5 lakh crore. The IT heavyweight witnessed sharp volatility, gaining 2.78% to hit an intraday high of ₹2,142 before falling 3.85% from the day’s high to a low of ₹2,059.40.