TCS Q2FY27 Results 2026: Profit up 15%, dividend ₹12

Key takeaways from TCS Q2 FY27

Tata Consultancy Services (TCS) reported its second-quarter FY27 results on Thursday, October 8, after market hours. The IT services major posted double-digit year-on-year growth in both revenue and profit for the September quarter. Revenue from operations came in at ₹73,188 crore, up 11% year-on-year from ₹65,799 crore. Reported net profit figures varied across updates: one set of results cited consolidated net profit of ₹13,884 crore, while another cited ₹13,934 crore. TCS also announced a second interim dividend of ₹12 per share for FY27.

What the company reported on profit and revenue

On profit, TCS reported a year-on-year rise of about 15% in consolidated net profit for Q2 FY27. One report pegged the September-quarter profit at ₹13,884 crore, while another placed it at ₹13,934 crore, compared with ₹12,131 crore in the year-ago quarter. Revenue from operations was consistently reported at ₹73,188 crore for the quarter, against ₹65,799 crore a year ago. Sequentially, revenue increased to ₹73,188 crore from ₹72,275 crore in the preceding quarter. One update also described profit as rising 3.8% compared with the June quarter.

Margins: operating margin near 24%, net margin near 19%

TCS reported operating margin at about 24% for the quarter, and net margin at around 19%. Another detailed update put the EBIT margin at 23.98%, described as below an estimate of 24.2%. The same update highlighted a slight change versus the prior quarter’s 23.96%. Net profit margin for Q2 FY27 was cited at around 19.0%, compared with 19.6% in the year-ago quarter and 19.2% in Q1 FY27. These figures place the quarter’s profitability in a narrow band, with margins largely stable but closely tracked versus expectations.

EBIT and other profit-line details

Operating income (EBIT) for Q2 FY27 was reported at ₹17,553 crore, up from ₹17,317 crore in the previous quarter. The year-on-year comparison for operating income was stated as ₹17,553 crore versus ₹16,565 crore in the year-ago quarter. Income before taxes was reported at ₹18,638 crore, up 8.3% year-on-year from ₹17,203 crore. Taken together, these numbers show steady sequential improvement in operating income alongside year-on-year expansion in key profit lines.

Dividend announced: ₹12 per share

Following the quarterly performance, TCS announced a second interim dividend of ₹12 per share for FY27. The dividend announcement was referenced alongside the profit growth reported for Q2. For investors tracking shareholder returns, the interim payout is a key board action disclosed with the results. The update was also cited in the context of TCS shares reacting positively after the earnings release.

Deal momentum, cash flows, and workforce metrics

The company reported a total contract value (TCV) of $1.6 billion for the quarter. Net cash from operations was reported at ₹14,190 crore, which was described as 102.2% of net income. TCS said its workforce stood at 5,98,056 at the end of the quarter. Trailing 12-month attrition in IT Services was reported at 13.3%. These operational indicators are closely watched in IT services because they signal delivery capacity, hiring and retention trends, and cash conversion.

Segment note: India share and constant currency change

A segment detail in the updates stated that India’s share stood at 5.5%. It also said this represented a 10.3% quarter-on-quarter decline in constant currency terms. While the disclosure is limited to this snapshot, it highlights how geographic mix and currency-normalised trends can diverge from headline rupee growth.

USD revenue and AI revenue disclosure

For Q2 FY27, one data point reported revenue at $1,642 million, with growth of +0.2% quarter-on-quarter and +2.4% year-on-year in USD terms. It also cited +0.5% quarter-on-quarter growth in constant currency. Separately, annualised AI revenue was reported at $1.1 billion in Q2 FY27, described as crossing 10% of revenue. These numbers add an additional lens beyond rupee reporting, and they also signal how TCS is tracking AI-linked revenue at scale.

How the market and expectations framed the results

Ahead of the results, analysts were cited as expecting roughly 13% year-on-year revenue growth. The reported revenue growth of about 11% year-on-year therefore sat below that expectation reference. Post-results, TCS shares were described as having surged after the company reported the profit increase. With margins around 24% and a ₹12 interim dividend, the results contained multiple datapoints that can influence near-term investor positioning.

Summary table of reported metrics

Why these numbers matter

The Q2 FY27 update combines revenue growth, margin tracking, cash conversion, and deal value in a single set of disclosures. Revenue growth of about 11% year-on-year, alongside an operating margin near 24%, sets the baseline for how TCS balanced growth with profitability in the quarter. The EBIT margin print of 23.98% was also framed as below an estimate of 24.2%, underlining how sensitive market expectations can be to small margin movements. Disclosures such as TCV of $1.6 billion and net cash from operations at ₹14,190 crore help investors assess demand visibility and cash generation.

Conclusion

TCS’s Q2 FY27 results, announced on October 8, showed revenue from operations of ₹73,188 crore and year-on-year growth in net profit of about 15%, alongside an interim dividend of ₹12 per share. The quarter also reported EBIT of ₹17,553 crore, an EBIT margin near 24%, and net margin around 19%. Additional disclosures included TCV of $1.6 billion, net cash from operations of ₹14,190 crore, a workforce of 5,98,056, and trailing attrition of 13.3%. Investors will continue to track subsequent company updates for how growth, margins, and deal wins evolve through FY27.