TCS Reports Q2 Earnings: Net Profit Increases by 15% to Rs 13,884 Crore, Revenue Grows by 11%
Tata Consultancy Services (TCS), India’s largest IT services firm, reported a 15% increase in consolidated net profit for the September quarter, reaching Rs 13,884 crore. This growth was driven by strong demand for artificial intelligence services and broad-based expansion across international markets. In the same quarter last year, TCS posted a net profit of Rs 12,075 crore, while the profit for the previous June quarter stood at Rs 13,349 crore.
Revenue from operations rose by 11.22% year-on-year to Rs 73,188 crore, up from Rs 65,799 crore a year ago. Sequentially, revenue increased by 1.3% from Rs 72,275 crore in the June quarter. TCS reported an operating margin of 24% and a net margin of 19% for the quarter. The company’s annualized AI revenue surpassed $3 billion, reaching $3.1 billion, which constitutes over 10% of its total revenue. The total contract value (TCV) was reported at $9.6 billion, slightly up from $9.5 billion in the previous quarter but down from $10 billion a year earlier.
Key growth drivers included banking, financial services, and insurance (BFSI), manufacturing, and technology services. BFSI grew by 2.5% sequentially in constant currency terms, while both manufacturing and technology services saw a growth of 3.1%. TCS added 4,258 employees on a net basis during the quarter, bringing its total workforce to 598,056 as of September 30. The attrition rate in IT services over the last twelve months was 13.3%.
TCS declared a second interim dividend of Rs 12 per equity share for FY27, with the record date set for October 14 and payment scheduled for October 30. The company also announced a five-year strategic partnership with Porsche AG, which includes acquiring 100% of MHP Management- und IT-Beratung GmbH, Porsche’s consulting subsidiary in Germany, pending regulatory approvals. Additionally, TCS will transition Best Buy’s Global Capability Centre in India into an AI Capability Centre. CEO K Krithivasan noted the broad-based growth across international markets and highlighted the significance of the Porsche and Best Buy partnerships in scaling AI initiatives. TCS shares closed 0.42% lower at Rs 2,075.25 on the BSE, while the benchmark index fell by 1.44%.
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