TCS Q2 PAT rises 4% QoQ to Rs 13,884 cr; AI revenue crosses $3 billion

Tata Consultancy Services (TCS) reported a 4.01% quarter-on-quarter (QoQ) and 14.98% year-on-year (YoY) increase in consolidated net profit to Rs 13,884 crore in Q2 FY27.

Revenue rose 1.3% QoQ and 11.2% YoY to Rs 73,188 crore during the quarter. Revenue growth in constant currency (CC) stood at 0.5% QoQ.

International revenue grew 1.2% QoQ in constant currency, led by growth in banking, financial services and insurance (BFSI), manufacturing, and technology & services. BFSI revenue grew 2.5% QoQ in constant currency, while manufacturing and technology & services grew 3.1% each.

The company reported an operating margin of 24% in Q2 FY27.

The company's total contract value (TCV) stood at $9.6 billion in Q2 FY27, up from $9.5 billion in Q1 FY27 but lower than $12 billion in Q4 FY26.

Annualised artificial intelligence (AI) revenue stood at $3.1 billion in Q2 FY27, crossing 10% of the company's revenue.

Net cash generated from operations stood at Rs 14,190 crore, equivalent to 102.2% of net income.

TCS's workforce stood at 5,98,056 employees, while trailing 12-month attrition in IT services stood at 13.3%.

Meanwhile, the company declared a dividend of Rs 12 per share. The record date is 14 October 2026, with payment scheduled for 30 October 2026.

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.?

Samir Seksaria, chief financial officer, said, ?We continued to strengthen our capabilities through acquisitions, partnerships and investments in niche talent. In addition, we maintained strong cash conversion and industry-leading profitability, along with our focus on creating sustainable long-term value for all stakeholders.?

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%.?

Tata Consultancy Services (TCS) is a digital transformation and technology partner of choice for industry-leading organizations worldwide.

The scrip shed 0.42% to settle at Rs 2,075.25 on the BSE.

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