TCS Q2 results: Net profit rises 15% to ₹13,884 crore, revenue jumps 11% YoY; TCV rises to $9.6 billion

India’s largest IT services firm, Tata Consultancy Services (TCS), posted its July to September quarter earnings report on Thursday, October 8, in which the firm recorded a 15% year-on-year (YoY) surge in overall consolidated net profits amid key support from revenue gains and deals in the period.

Along with the company’s financial report, TCS also announced a second interim dividend of ₹12 per share for every eligible shareholder up to the predetermined record date of the corporate action.

NSE filings showed that TCS’s consolidated net profits (attributable to shareholders) surged around 15% to ₹13,884 crore in the second quarter of FY27, in comparison to ₹12,075 crore in the same period a year earlier.

The IT company’s revenue from core operations advanced 11.2% to ₹73,188 crore in the period under review, from ₹65,799 crore in the same period a year earlier, as per the exchange filing.

The company also disclosed that the total contract value (TCV), or the total deal value secured by the firm in a particular period surged to $9.6 billion as of the quarter ended September 2026.

The Q2 print further showed that TCS’s operating profit, or earnings before interest, tax, depreciation and amortisation (EBITDA), increased 4.6% to ₹18,815 crore in the September quarter, compared to ₹17,978 crore in the same quarter of the previous year.

Although the company’s operating profits witnessed an increase in the Q2 results, TCS’s EBITDA margins contracted by 162 basis points to 25.70% in the quarter ended September 2026, from 27.32% in the corresponding quarter a year earlier.

TCS also disclosed that the company’s operating margin was at 24%, and the net margin was at 19% in the Q2 results for FY27.

Revenue segments

A deeper dive into the financials also showed that TCS’s revenue from BFSI clients surged 12.3% YoY to ₹28,882 crore in the September quarter, from ₹25,717 crore in the same period a year earlier.

The IT company’s revenues from its Consumer Business rose 7.5% YoY to ₹11,137 crore in the period under review, compared to ₹10,351 crore in the same period a year earlier.

The BFSI and consumer business remained the largest contributor to the overall revenues, while all other verticals gained during the September quarter with the help of steady demand in the market.

Management commentary

K Krithivasan, the Chief Executive Officer and Managing Director of TCS, attributed the company’s Q2 performance to broad-based growth across the 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,” said K Krithivasan in the official statement.

The company management also highlighted that the AI revenues of TCS remained strong due to the overall momentum and demand in the industry.

Data showed that TCS’s AI revenues were at $3.1 billion in the second quarter of the financial year 2026-27, crossing 10% of the overall revenues in the period.

Tata Consultancy Services’ deal with Porsche AG and Best Buy remain the two major strategic deal wins in the focus of equity market investors.

TCS dividend issue

The board of directors, after their meeting on October 8, declared a second interim dividend for the financial year 2026-27 of ₹12 per share with a face value of ₹1 apiece, according to the exchange filing.

“We would like to inform you that at the board meeting held today, the directors have declared a second interim dividend of ₹12 per equity share of ₹1 each of the company, for the financial year 2026-27,” the company informed the exchanges.

TCS will pay the second interim dividend to all eligible shareholders up to 24 hours ahead of the official record date of the corporate action. The IT company fixed its record date on Wednesday, October 14, 2026.

As per the NSE filing, TCS will pay the dividend to shareholders on Friday, October 30, 2026.