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

TCS Q2 Results: Net profit rises 15% to ₹13,884 crore, beats estimates SEBI RA – Shubh Consultancy – Sunil Kotak – INH000015826

Tata Consultancy Services (TCS) net profit grew 14.9 per cent to ₹13,884 crore while revenue grew 11 per cent to ₹73,188 crore, trumping brokerage expectations for the September-ending quarter of 2026-27. The company beat the Street estimates of rupee revenue estimates are largely around the ₹73,000 crore mark and net profit of close to ₹13,700 crore. Net profit grew 4 per cent and revenue grew 1.26 per cent on a quarterly basis. Annualised AI revenue run-rate stood at $3.1 billion, a sequential increase of 19 per cent. “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, Chief Executive Officer and Managing Director. Total contract value (TCV) was reported at $9.6 billion, marginally higher than the last quarter but within brokerage expectations. Operating margin remained at 24 per cent, bucking estimates of healthy margin growth. The Board of Directors also declared a second interim dividend of ₹12 per Equity Share of ₹1 each of TCS. AI-led growth Despite beating the Street, one analyst on anonymity said revenue actually declined on a non-AI basis. Other income also helped keep the profit growth positive. Meanwhile, the BSNL deal and pricing deflation kept the Indian market volatile and the margin flattish. “Overall results are largely in-line with our expectations. However notable fact is q-o-q improvement in growth in international. Annualised AI revenue, crosses 10 per cent of sales. Q2 TCV deals are decent, especially on a sequential basis,” said Sandeep Shah, Director Equity Research at Equirus Securities. All this is for information This is not a buy/sell recommendation.