TCS profit rises 15% as AI revenue crosses $3 billion

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 Tata Consultancy Services Limited (

) reported a 14.9% year-on-year increase in consolidated net profit to ₹13,884 crore in Q2 FY27. Revenue rose 11.2% to ₹73,188 crore. What happened? Annualised AI revenue reached $3.1 billion, crossing 10% of total revenue. Total contract value (TCV) of deals won during the quarter stood at $9.6 billion. Operating margin remained at 24%. The company announced an interim dividend of ₹12 per share. It also announced strategic partnerships with Porsche and Best Buy focused on AI-led transformation and technology services. Why does it matter? AI is becoming a more meaningful contributor to TCS's business. Strong deal wins provide potential future revenue, but converting these contracts into profitable growth will depend on client spending, execution and demand across business segments. My view The growth in AI revenue and deal bookings is encouraging. However, sustained performance will depend on converting demand into revenue while maintaining margins in a changing technology services market. What I am watching next I would track AI revenue growth, deal conversion, operating margins and demand across key industry segments to assess whether growth remains broad-based. No Recommendations Source: The Hindu Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in Tata Consultancy Services Limited.