India’s largest IT services player, Tata Consultancy Services (TCS), reported a net profit of Rs 13,884 crore for the second quarter of the financial year 2026-27, up 14.9 per cent compared to Rs 12,075 crore for the first quarter of FY26.
The company’s revenue grew 11.2 per cent in reported terms to Rs 73,188 crore for the second quarter, compared to Rs 65,799 crore year-on-year.
On a quarter-on-quarter basis, net profit was up 4 per cent. Sequentially, the firm’s revenue was up 1.3 per cent.
The company’s performance beat Bloomberg estimates on revenue and profit. According to Bloomberg estimates, revenue was expected at Rs 73,108 crore and net profit at Rs 13,786 crore.
In a quarter that was expected to be soft due to global uncertainty and an AI-led shift, the company’s performance was better than expected. Importantly, the company also saw its AI revenue grow.
Annualised AI revenue was $3.1 billion, crossing 10 per cent of revenue. In Q1 FY27, TCS’ annualised AI revenue came in at $2.6 billion, up 13.6 per cent quarter-on-quarter.
The total contract value (TCV) of the order book for the second quarter was $9 billion. For the first quarter, TCV was $9.5 billion. TCS had signed deals worth $10 billion in Q2 FY26.
K Krithivasan, Chief Executive Officer and Managing Director, said: “We are pleased with the broad-based growth in all our international markets and most industry segments. 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.”
The company’s Q2 saw growth across its major markets. The positive aspect of the results was growth in international markets, where revenue grew by 1.2 per cent.
In terms of verticals, the company saw growth across segments. BFSI, which is the largest revenue contributor, grew 3.9 per cent year-on-year and 2.5 per cent sequentially. Consumer Business was the only segment that recorded a decline.
The US, which is the company’s biggest geography, grew 1.5 per cent year-on-year and was largely flat on a quarter-on-quarter basis, with growth of 0.4 per cent. Continental Europe was up 3.3 per cent year-on-year, while the UK was up 4.5 per cent year-on-year.
Aarthi Subramanian, Executive Director, President and Chief Operating Officer, said: “AI momentum remained strong, with annualized AI revenues now exceeding $3 billion. Demand for delivering business outcomes with AI-native solutions, AI-led transformation of enterprise systems and autonomous GBS, continues to accelerate. Cybersecurity remains a top priority as customers sharpen their focus on resilience and recovery. TCS’ Human+AI Services Autonomy model for AMS earned top rankings from customers, underscoring the strength of our differentiated capabilities.”
TCS reported operating margins of 24 per cent for the second quarter of FY27.
The total headcount at the end of June 30, 2026, was 598,056, an addition of 4,258 employees. Attrition for the quarter came in at 13.3 per cent.
Sudeep Kunnumal, Chief HR Officer, said: “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. This quarter our employee base reached over 598,000, while attrition remained stable at 13.3%.”
