News alert

TCS Q2 profit rises 15% to ₹13,884 crore; revenue up 11% to ₹73,188 crore, ₹12 dividend declared

Thursday, 8 October 2026 at 7:40 pm ISTSource: CapitCue, from company results and media reports

Tata Consultancy Services reported September-quarter results after the market closed on 8 October: profit of ₹13,884 crore, revenue of ₹73,188 crore, deal wins of $9.6 billion and a second interim dividend of ₹12 per share.

Tata Consultancy Services (TCS), India's largest IT services company, reported its results for the July–September 2026 quarter (Q2 of FY27) after the market closed on Thursday, 8 October 2026. The company's consolidated net profit was ₹13,884 crore, about 15% higher than ₹12,075 crore a year ago, and revenue from operations was ₹73,188 crore, up 11.2% from ₹65,799 crore.

The numbers

Net profit attributable to shareholders was ₹13,884 crore, up about 4% from the June quarter. Reports note that the June quarter carried an exceptional loss of ₹668 crore linked to a legal claim settlement, which makes the sequential comparison look better. One report puts revenue growth over the June quarter at about 1.3%, and about 0.5% in constant currency. EBITDA was ₹18,815 crore with a margin of 25.70%, down from 27.32% a year ago, according to Upstox. TCS's own operating margin was 24% and its net margin 19%.

BFSI, the largest vertical, brought in ₹28,882 crore, up 12.3% on the year, and the consumer business ₹11,137 crore, up 7.5%. Net cash from operations was ₹14,190 crore, or 102.2% of net income. The company had 598,056 employees at the end of September, and attrition in IT services over the last twelve months was 13.3%.

Deals and AI

Total contract value (TCV), the value of new deals signed in the quarter, was $9.6 billion. TCS highlighted a five-year strategic partnership with Porsche AG, along with the acquisition of MHP, Porsche's Germany-based management and IT consulting subsidiary, and an agreement to take over Best Buy's India captive centre and turn it into an AI-focused centre. Annualised AI revenue reached $3.1 billion, up from $2.6 billion in the June quarter, and the company says this is now more than 10% of its revenue. CEO K Krithivasan said TCS is pleased with the broad-based growth in all its international markets and most industry segments.

Dividend

The board declared a second interim dividend of ₹12 per share (face value ₹1). The record date is 14 October 2026 and the payment date is 30 October 2026.

How it compares

One report said profit was about 1% below expectations and revenue roughly in line. Estimates differ between brokerages, so treat this as indicative. One headline gave profit as ₹13,934 crore; the filing figure reported by most sources, and used here, is ₹13,884 crore.

What to watch

The stock reacts when trading resumes on Friday, so watch how TCS and the Nifty IT index respond to the margin and the commentary on demand and AI.

This story was compiled by CapitCue from the company's results as reported by the media sources listed below. It is not an official statement, and CapitCue provides information only; it is not investment advice.

Sources: Upstox News · Business Today · Zee Business

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