TCS Q2 Results: Profit Rises To ₹13,884 Cr, Revenue At ₹73,188 Cr; ₹12 Dividend Declared

Tata Consultancy Services (TCS) reported a consolidated net profit of ₹13,884 crore for the quarter ended September 30, 2026, up from ₹12,904 crore in the year-ago quarter, the company said in a statement on Thursday.

The country's largest IT services company reported revenue of ₹73,188 crore for the July-September quarter from ₹65,799 crore in the corresponding quarter last year.

Revenue was up 1.3% sequentially in rupee terms and 0.5% quarter-on-quarter in constant currency, the company said.

TCS also declared a dividend of ₹12 per share, with October 14 set as the record date and October 30 as the payment date.

AI Revenue Crosses $3 Bn, Margins 24%

TCS said its annualised AI revenue crossed $3 billion in the September quarter, accounting for more than 10% of its revenue. The company recorded total contract value (TCV) of $9.6 billion during the quarter.

Growth was led by banking, financial services and insurance (BFSI), manufacturing, and technology and services. BFSI revenue grew 2.5% quarter-on-quarter, while manufacturing and technology and services both grew 3.1%.

Among its international markets, the UK grew 3.5% sequentially in constant currency, while North America grew 0.4%.

TCS added 4,258 employees during the quarter, taking its total workforce to 5,98,056 as of September 30. The company's attrition rate at 13.3%.

The company reported an operating margin of 24% and net cash from operations of ₹14,190 crore, equivalent to 102.2% of net income.

Porsche, Best Buy Deals Announced

During the quarter, TCS announced a five-year strategic partnership with Porsche AG and said its subsidiary would acquire 100% of MHP Management- und IT-Beratung GmbH, Porsche's Germany-based management and IT consulting subsidiary. The transaction remains subject to regulatory approvals.

TCS also agreed to transition Best Buy's Global Capability Centre in India to the company and transform it into an AI Capability Centre.

The company said its other major wins included an SAP S/4HANA transformation mandate from Honeywell Technologies and a long-term infrastructure partnership with Aareal Bank.

“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 industrialise AI at scale,” CEO and Managing Director K Krithivasan said in a statement.