08 - 10 - 2026

TCS Q2 consolidated net profit rises 7.6% to ₹13,884 crore

Tata Consultancy Services (TCS) posted a net profit of ₹13,884 crore on a consolidated basis for the second quarter ended September 30, buoyant on strong momentum across global markets, new transformational enterprise partnerships, and rising artificial intelligence (AI) demand.

During the quarter under review, the Tata Group company’s net profit rose 7.6 per cent from ₹12,904 crore recorded during the same period of previous financial year, the company said in a regulatory announcement.

TCS’ revenue rose 11.2 per cent to ₹73,188 crore in Q2, compared with ₹65,799 crore recorded during the same quarter of previous financial year. Operating margin for the quarter stood at 24 per cent, with a net margin of 19 per cent.

TCS board declared an interim dividend of ₹12 per share, with October 14 as record date and payment scheduled for October 30, 2026.

“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,” K Krithivasan, Chief Executive Officer and Managing Director at TCS said.

BFSI rises 2.5%

Banking, Financial Services and Insurance (BFSI) grew 2.5 per cent sequentially in constant currency, alongside Manufacturing and Technology & Services, both expanding by 3.1 per cent each. Geographically, North America accounted for 48.3 per cent of total revenue composition, while the United Kingdom contributed 17.8 per cent and Continental Europe accounted for 15.2 per cent. Domestic business in India represented 6.2 per cent of the total revenue mix following a sequential growth phase.

Total Contract Value (TCV) for the quarter reached $9.6 billion, following sustained enterprise demand for large-scale digital modernisation and cloud services. Meanwhile, annualised AI revenue crossed $3.1 billion, accounting for more than 10 per cent of total revenue as enterprise customers increasingly adopt AI-native solutions and automation models.

“Demand for delivering business outcomes with AI-native solutions, AI-led transformation of enterprise systems and autonomous GBS, continues to accelerate. Cybersecurity remains a top priority as customers sharpen their focus on resilience and recovery. TCS’ Human+AI Services Autonomy model for AMS earned top rankings from customers, underscoring the strength of our differentiated capabilities,” Aarthi Subramanian, Executive Director, President and Chief Operating Officer at TCS said.

The company’s net cash from operations stood at ₹14,190 crore, which is 102.2 per cent of net income. Total workforce strength reached 598,056 employees as of September-end, while last-twelve-months attrition for IT services remained stable at 13.3 per cent. Investments in learning and critical skills drove a 17 per cent sequential increase in employee learning hours to reach 17.1 million during the quarter.

“We continue to build a future-ready workforce through upskilling our employees and hiring top talent. Investments in learning and critical skills drove a 17 per cent sequential increase in learning hours to 17.1 million. This quarter our employee base reached over 598,000, while attrition remained stable at 13.3 per cent,” Sudeep Kunnumal, Chief Human Resources Officer at TCS said.

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