TCS Q2 profit rises 15% to ₹13,884 crore

Tata Consultancy Services Limited

reported Q2 FY27 consolidated net profit of ₹13,884 crore, up 15% YoY. The board also declared a second interim dividend of ₹12 per share. What happened: Revenue from operations was ₹73,188 crore, up 11.2% YoY and 1.3% QoQ. Net profit rose 4% QoQ from ₹13,349 crore. Operating margin was 23.98%, almost unchanged from 23.96% in Q1. Annualised AI revenue reached $3.1 billion, up from $2.6 billion in Q1. Total contract value (TCV) for the quarter was $9.6 billion. The record date for the dividend is 14 October 2026. Why it matters: Growth was steady but slow. Revenue grew 1.3% in the quarter, which is about 5% if repeated for a year. AI is the one line growing fast, up about 19% QoQ. My view: Profit grew faster than revenue. Net profit was about 19.0% of revenue, against 18.3% a year ago. But operating margin was flat sequentially, so I cannot tell how much of the gain is core business and how much is other income or tax. The data has no constant-currency growth figure either. The AI number is a good sign, but it is an annualised run rate, not booked revenue. The $9.6 billion TCV is only useful if it turns into billings over the next few quarters. What I am watching: The 14 October record date, AI revenue against $3.1 billion next quarter, and operating margin holding near 24%. Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations.