Tata Consultancy Services reported a 14.9 per cent year-on-year rise in net profit to ₹13,884 crore for the quarter ended September 30, 2026, according to BusinessLine. Revenue for the period grew 11 per cent to ₹73,188 crore, ahead of brokerage expectations of roughly ₹73,000 crore in revenue and about ₹13,700 crore in profit.
The company's board approved a second interim dividend of ₹12 per equity share of ₹1 each for the financial year 2026-27, BusinessLine and The Economic Times reported.
On a consolidated basis, TCS posted a profit after tax of ₹13,934 crore in Q2 FY27, up 14.8 per cent from ₹12,131 crore in the same quarter a year earlier, according to BusinessLine.
Why it matters
The results place TCS ahead of Street estimates at a time when the information technology services sector is navigating uneven global demand. BusinessLine reported that growth was driven largely by two international deals — with Porsche and Best Buy — and by positive momentum across most business segments.
The quarter also offered a concrete measure of how AI spending is translating into revenue for India's largest IT services firm. Annualised AI revenue crossed $3 billion, a figure TCS executives cited as evidence that client demand for AI-led transformation is accelerating.
Deal wins and AI revenue
TCS chief executive K Krithivasan said the company was pleased with broad-based growth across international markets and most industry segments. He described the Porsche and Best Buy engagements as a new category of transformation partnerships, adding that TCS and its clients are building repeatable value platforms intended to industrialise AI at scale.
Aarthi Subramanian, Executive Director and President and Chief Operating Officer, said AI momentum remained strong, with annualised AI revenue now above $3 billion. She said demand is rising for AI-native solutions that deliver business outcomes, AI-led transformation of enterprise systems, and autonomous global business services. She also noted that cybersecurity remains a priority as customers focus more sharply on resilience and recovery, and said the company's Human+AI Services Autonomy model for application management services earned top customer rankings.
On the earnings call, TCS executives said the demand environment has not materially changed since the first quarter, and that growth momentum should continue over the medium term on the strength of deal wins and client conversions, BusinessLine reported. Executives also said they expect margin headwinds in the second half tied to seasonality and dilution related to acquisitions. Banking, manufacturing and life sciences were identified as the verticals leading in AI adoption.
Margins, workforce and patents
Investing.com India reported that TCS saw margin compression to 24 per cent during the quarter.
Chief Financial Officer Samir Seksaria said the company continued to strengthen its capabilities through acquisitions, partnerships and investment in niche talent, while maintaining strong cash conversion and industry-leading profitability.
On the people side, Chief HR Officer Sudeep Kunnumal said TCS kept building a future-ready workforce through upskilling and hiring, with learning hours rising 17 per cent sequentially to 17.1 million. The employee base crossed 598,000, and attrition held steady at 13.3 per cent.
As of September 30, 2026, the company said it had applied for 10,044 patents, including 241 during the quarter, and had been granted 5,885 patents, including 215 in the quarter. Within that portfolio, AI-related inventions accounted for 2,176 cumulative filings, of which 180 were submitted during the quarter, and 649 cumulative grants, of which 47 came in the quarter.
Other results in the spotlight
BusinessLine's live coverage also tracked several other companies reporting for the same period, including GM Breweries, Onix Solar Energy, Lotus Chocolate Company, KR Rail Engineering and Indbank Housing. GM Breweries shares fell after its results were released, according to the publication.
Separately, ratings firm Crisil said in a report that India Inc's revenue is estimated to grow 16 to 16.5 per cent year-on-year in the second quarter of the current fiscal, moderating from 17.4 per cent in the previous quarter. Profitability is expected to hold at levels similar to the June quarter.
In real estate, Keystone Realtors reported an 84 per cent rise in sales bookings to ₹1,423 crore for the quarter, with sales area up 31 per cent to 0.65 million square feet from 0.5 million square feet a year earlier. Embassy Developments posted sales bookings of ₹3,225 crore, nearly eight times its year-ago figure. JSW Steel said consolidated crude steel production rose 5 per cent to 7.27 million tonnes, with Indian operations up 5 per cent to 7.07 million tonnes.
Broader sector developments reported alongside the earnings included a US green card programme suspension affecting Cognizant, Infosys, TCS, Wipro and HCL, a government cap on trade margins for cancer drugs at 30 per cent, a Supreme Court direction to the Centre to form an expert panel on unethical pharmaceutical marketing, and a World Trade Organization forecast raising 2026 goods trade growth to 3.9 per cent on the back of AI demand and supply chain resilience.
Investors will watch whether TCS can hold its growth trajectory through the seasonally weaker second half, and how the anticipated margin pressure from seasonality and acquisition-related dilution plays out against the company's expanding AI revenue base.
