Tata Consultancy Services Q2 FY27 results: net profit up 14.9% to ₹13,934 crore, revenue up 11.2%

How did Tata Consultancy Services perform in Q2 FY27?

Tata Consultancy Services reported consolidated revenue of ₹73,188 crore in Q2 FY27, up ₹7,389 crore or 11.2% from Q2 FY26 and ₹913 crore or 1.3% from Q1 FY27. EBITDA was ₹18,815 crore, up ₹837 crore or 4.7% year on year and ₹259 crore or 1.4% sequentially. The EBITDA margin was 25.7%, compared with 27.3% a year earlier and 25.7% in the previous quarter.

Profit before tax was ₹18,638 crore, up ₹2,570 crore or 16.0% from the year-ago quarter and ₹694 crore or 3.9% sequentially. Net profit was ₹13,934 crore, against ₹12,131 crore in Q2 FY26 and ₹13,420 crore in Q1 FY27. Basic EPS was ₹38.37, compared with ₹33.37 and ₹36.9, respectively. On the standalone basis, revenue was ₹60,441 crore, up 10.8%, and profit was ₹14,104 crore, against profit before exceptional items of ₹11,828 crore.

What changed in Tata Consultancy Services' costs and profit?

Total expenses were ₹55,887 crore, up ₹6,424 crore or 13.0% from Q2 FY26 and ₹656 crore or 1.2% from Q1 FY27. Employee cost increased ₹3,284 crore or 8.5% year on year, other expenses rose ₹3,268 crore or 35.5%, finance costs increased ₹23 crore or 10.0%, and depreciation fell ₹151 crore or 10.7%. There was no exceptional item in Q2 FY27, against a charge of ₹1,135 crore in Q2 FY26 and ₹668 crore in Q1 FY27.

Other income was ₹1,337 crore, up ₹470 crore or 54.2% from the year-ago quarter but down ₹231 crore or 14.7% from the previous quarter. Tax was ₹4,704 crore, up ₹767 crore or 19.5% year on year and ₹180 crore or 4.0% sequentially. The EBITDA margin fell 1.6 percentage points from Q2 FY26 but was unchanged from Q1 FY27, while the profit margin rose 0.6 percentage points year on year and 0.4 percentage points sequentially.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue was ₹145,463 crore, up ₹16,227 crore or 12.6% from H1 FY26. Total income rose ₹16,605 crore or 12.6% to ₹148,368 crore, while profit before tax increased ₹3,535 crore or 10.7% to ₹36,582 crore.

Net profit for H1 FY27 was ₹27,354 crore, up ₹2,404 crore or 9.6% from H1 FY26. Basic EPS increased by ₹6.63, or 9.7%, to ₹75.27 from ₹68.64.

What do the balance sheet and cash flow show?

Total assets were ₹190,782 crore at 30 September 2026, compared with ₹182,372 crore at 31 March 2026. Total equity rose to ₹119,994 crore from ₹108,478 crore, while cash fell to ₹5,106 crore from ₹6,417 crore. The company reported no borrowings at either balance-sheet date. Trade receivables increased to ₹69,028 crore from ₹67,714 crore, and trade payables rose to ₹15,206 crore from ₹14,808 crore.

H1 FY27 operating cash flow was ₹25,801 crore, compared with ₹24,944 crore in H1 FY26. Investing cash flow was negative ₹9,390 crore against negative ₹11,165 crore, while financing cash flow was negative ₹17,775 crore against negative ₹16,305 crore. Capital expenditure was ₹1,926 crore, compared with ₹1,868 crore a year earlier.

How has Tata Consultancy Services done over the last 8 quarters?

Revenue increased year on year in each of the last eight quarters, while profit increased year on year in each of the last three quarters. Revenue reached ₹73,188 crore in Q2 FY27, the highest level in the reported trend, following ₹70,698 crore in Q4 FY26 and ₹72,275 crore in Q1 FY27.

Net profit was ₹13,934 crore in Q2 FY27, above ₹13,420 crore in Q1 FY27 but below the trend’s peak of ₹13,784 crore in Q4 FY26. The EBITDA margin was 25.7%, down from the trend’s peak of 27.3% in Q2 FY26 and Q4 FY26, and matched Q1 FY27.

Which businesses drove the quarter?

Banking, Financial Services and Insurance reported revenue of ₹28,882 crore, up 12.3% from ₹25,717 crore, with EBIT of ₹7,351 crore and a 25.5% margin. Manufacturing revenue was ₹7,346 crore, up 10.8% from ₹6,631 crore, with EBIT of ₹2,044 crore and a 27.8% margin. Consumer Business revenue was ₹11,137 crore, up 7.6% from ₹10,351 crore, with EBIT of ₹3,316 crore and a 29.8% margin.

Communication, Media and Technology reported revenue of ₹10,862 crore, up 10.8% from ₹9,802 crore, with EBIT of ₹2,913 crore and a 26.8% margin. Life Sciences and Healthcare revenue was ₹7,589 crore, up 10.2% from ₹6,884 crore, with EBIT of ₹1,918 crore and a 25.3% margin. Others recorded revenue of ₹7,372 crore, up 14.9% from ₹6,414 crore, with EBIT of ₹1,273 crore and a 17.3% margin.

What else did the company announce?

The board approved and took on record the audited standalone and consolidated financial results for the quarter and six-month period ended 30 September 2026. It declared a second interim dividend of ₹12 per equity share of ₹1 each for FY27. The dividend is payable on 30 October 2026 to shareholders on the register or in the records of the depositories as beneficial owners on 14 October 2026, the record date.

In a separate filing dated 9 October 2026, the company said its US workforce strategy was anchored in hiring local talent through a campus recruitment model. TCS said it intended to hire an additional 15,000 people in the US over the next five years and did not expect the suspension of the PERM programme to affect its workforce strategy or customer engagements, as its applications had been in single digits in the last two years.

What did Tata Consultancy Services' management say?

Management said annualised AI revenue had reached $3.1 billion and crossed 10% of overall revenue. CEO K Krithivasan said the demand environment had not materially changed since the previous quarter, while discretionary programmes without near-term value remained under scrutiny. The company’s focus was on translating advances in AI into measurable enterprise advantage for clients, and it reported a quarterly TCV of $9.6 billion excluding the Porsche and Best Buy deals.

CFO Samir Seksaria said the long-term operating-margin aspiration of 26%–28% remained the company’s “guiding beacon”, with no specific FY27 revenue or earnings guidance. Management expected margin to inch up from 24% as growth improved, while H2 FY27 was expected to include approximately 50 bps of dilution related to the MHP acquisition, furlough seasonality and continued ecosystem investments. Data-centre revenues were expected to begin 18 to 24 months after contract signing.

Management said all international markets grew sequentially, led by the UK at 3.5% in constant currency. BFSI, Manufacturing and Technology and Services each grew sequentially in constant currency, while India revenue grew 6%. Management also identified higher subcontractor and external-consultant costs, volatile regional and India revenue, and continued client scrutiny of discretionary programmes as near-term risks.

How did Tata Consultancy Services shares react?

After the filing appeared after market hours, the stock was up 3.4% after five minutes, 3.3% after 15 minutes and 4.1% after 30 minutes. On the reaction day, it closed 4.6% above its pre-results close of ₹2,076. The industry median move was 1.5%, giving TCS an excess sector move of 3.1 percentage points.

By the next day’s close, the stock was up 2.4% from its pre-results close, against a 1.1% median move for the industry and a 0.7% move for the Nifty 100. By the fifth session’s close, it was up 18.7% from the same close, versus 5.4% for the industry and 3.7% for the Nifty 100. Earlier reaction-day moves included gains of 0.4% on 9 July 2026 and 0.6% on 12 January 2026, and declines of 2.6% on 9 April 2026 and 1.1% on 9 October 2025.

How did other Computers - Software & Consulting companies do?

Among 33 Computers - Software & Consulting peers that had filed for the quarter, the median revenue growth was 13.6%, compared with TCS’s 11.2%. Eleven peers grew more slowly than TCS, while 22 grew faster. Of the 32 peers for which profit was compared, 20 reported higher profit.