Tata Consultancy Services (TCS) reported consolidated revenue of ₹73,188 crore for the quarter ended September 30, 2026, registering growth of 1.3% quarter-on-quarter and 11.2% year-on-year in rupee terms. Revenue grew 0.5% quarter-on-quarter in constant currency, while international revenue increased 1.2% in constant currency.
Banking, Financial Services and Insurance (BFSI) grew 2.5% quarter-on-quarter in constant currency, while Manufacturing and Technology & Services grew 3.1% each. Annualised AI revenue reached US$3.1 billion during Q2 FY27, crossing 10% of TCS revenue.
The company reported a Total Contract Value (TCV) of US$9.6 billion for the quarter. Operating margin stood at 24%, while net profit was ₹13,884 crore, resulting in a net margin of 19%. Net cash from operations was ₹14,190 crore, equivalent to 102.2% of net income.
TCS announced several strategic partnerships during the quarter, including a five-year partnership with Porsche AG. Under the agreement, TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche. TCS, through a subsidiary, will also acquire 100% of MHP Management- und IT-Beratung GmbH, Porsche’s Germany-based management and IT consulting subsidiary, subject to regulatory approvals.
The company also agreed to transition Best Buy’s Global Capability Center in India to TCS and transform it into an AI Capability Center. The initiative will combine Best Buy’s retail and enterprise expertise with TCS technology, engineering and AI capabilities.
Other major engagements included selection by Honeywell Technologies as its global SAP S/4HANA business transformation partner and a long-term partnership with Aareal Bank covering infrastructure, cloud, cybersecurity and workplace services. TCS also entered into a strategic partnership with Vodafone Business to support technology modernisation and digital adoption.
TCS launched an Industrial Autonomy & Engineering Lab Lights-Out Factory in Pune and an Autonomous Engineering Lab powered by NVIDIA in Bengaluru. The company also expanded its Gemini Experience Center network with facilities in Mexico City and Kolkata.
“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,” said K Krithivasan, Chief Executive Officer and Managing Director, TCS.
TCS had 598,056 employees at the end of the quarter, while LTM IT Services attrition stood at 13.3%. The company announced a dividend of ₹12 per share, with October 14, 2026 as the record date and October 30, 2026 as the payment date. A part of the Tata Group, TCS is committed to creating long-term value for clients, investors, employees, and communities. The company operates in 56 countries through a highly skilled workforce and a global network of 194 service delivery centers. Recognized as a top employer across six continents, TCS has established enduring client relationships that have spanned multiple decades and every major technology era—from mainframes in the 1970s to today’s AI-driven innovations. TCS also champions health, sustainability, and community engagement through its sponsorship of 14 of the world’s most prestigious marathons and endurance events, including the TCS New York City Marathon, TCS London Marathon, Tata Mumbai Marathon, and TCS Sydney Marathon.
Leave a Reply