Tata Consultancy Services Limited (TCS)
₹2,465.00 +4.89% last close, 16 Oct
Q2 FY27 results
Tata Consultancy Services Limited reported Q2 FY27 results on 8 Oct 2026: revenue ₹73,188 Cr (+11.2% year on year, +1.3% on the previous quarter), and net profit ₹13,934 Cr (+14.9% year on year); the operating margin was 25.7%.
| Q2 FY27 (₹ Cr) | Value | YoY vs Q2 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹73,188 | +11.2% | +1.3% |
| Operating profit | ₹18,815 | +4.7% | +1.4% |
| Net profit | ₹13,934 | +14.9% | +3.8% |
| EPS (₹) | 38.37 | +15.0% | +4.0% |
| Operating margin | 25.7% | — | — |
- Profit +11% above its own trend
- Operating margin contracted 161 bps YoY
Quality of profit: of pre-tax profit of ₹18,638 Cr, ₹17,301 Cr (93%) came from the core business and the rest from other income and one-off items. Core profit (operating profit less interest and depreciation) moved +5.9% year on year.
Against its own trend: net profit of ₹13,934 Cr was +11.4% against the ₹12,505 Cr its recent growth pointed to (above trend). This is a statistical baseline, not an analyst estimate.
Share price since the results: +18.7% (close before the filing to the latest close).
TCS delivery percentage and open interest
NSE end-of-day data for
On Fri, 16 Oct 2026, 57.35% of the TCS shares traded on NSE were taken to delivery, against the stock's own 20-session average of 48.24%. The price rose 4.89% on that unusually high delivery, the pattern the delivery dashboard labels accumulation. It traded 2.8 times its average daily volume. In TCS futures, open interest fell 2.52% while the futures price rose 4.49%: short covering (shorts closing out).
Delivery in the last 5 sessions: 42.0% · 44.1% · 61.5% · 53.9% · 57.4%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Tata Consultancy Services (TCS) announced the completion of its acquisition of a 100% partnership interest in BBY Services India LLP on October 15, 2026. Following this transaction, BBY Services India LLP has officially become a wholly owned subsidiary of the IT major. This follows TCS's prior disclosure dated October 1, 2026, though specific financial deal metrics such as acquisition cost were not disclosed in this filing. Given TCS's massive scale with TTM revenue of ₹2,75,859 crore, the immediate operational addition is expected to integrate into its services ecosystem.
- Completed acquisition of 100% partnership interest in BBY Services India LLP on October 15, 2026
- Target entity becomes a wholly owned subsidiary effective October 15, 2026
- Follows initial intimation letter reference TCS/SE/94/2026-27 dated October 1, 2026
- Financial deal value and revenue contribution details were not disclosed in the document
Tata Consultancy Services has launched the Industrial Intelligence Foundry, a domain-specific suite of configurable AI agents, workflows, and governance models for engineering and manufacturing sectors. The platform aims to reduce new product introduction timelines by 25% and enhance manufacturing productivity by 20% to 25%, with potential long-term gains exceeding 40%. The filing does not disclose contract wins, commercial pricing, or immediate revenue projections associated with the offering. This aligns with TCS's strategic goal to position itself as an AI-led technology services provider amidst annual revenue surpassing US$30 billion.
- Targets 25% reduction in enterprise new product introduction timelines
- Aims for a 20% to 25% improvement in manufacturing productivity, potentially exceeding 40% as ecosystems mature
- Focuses on industrial verticals including aerospace, mobility, semiconductors, medical devices, and utilities
- Supports industrial organizations as physical AI spending is projected to double over the next 2 years according to HFS Research
- Financial contribution and immediate commercial deal values not disclosed
TCS filed the transcript of its Q2 FY27 earnings conference call held on October 8, 2026. Quarterly revenue stood at ₹73,188 crore, up 0.5% QoQ in constant currency and 11.2% YoY in rupee terms, with operating margins at 24% and net margins at 19%. Order book Total Contract Value (TCV) was $9.6 billion for the quarter, excluding Porsche and Best Buy deals. Annualized AI services revenue crossed $3.1 billion, representing over 10% of total revenue. Management reiterated its long-term operating margin aspiration of 26%-28% while continuing strategic investments in AI, talent, and acquisitions.
- Q2 revenue reached ₹73,188 crore ($7,642 million), up 0.5% QoQ in constant currency and 11.2% YoY
- Operating margin maintained at 24.0% with net profit margin at 19.0%
- Quarterly TCV order book reached $9.6 billion, excluding Porsche and Best Buy engagements
- Annualized AI revenue crossed $3.1 billion, contributing over 10% of overall revenue
- Added 10,000 university graduates in the quarter following 14,000 fresher additions in the prior quarter
TCS has been selected by Australia-based MyState Limited to deploy its TCS BaNCS Global Banking Platform for post-merger core banking transformation following MyState Bank's merger with Auswide Bank. The contract value and tenure were not disclosed in the announcement. Relative to TCS's TTM revenue of ₹2,75,859 crore and Q1 FY26 TCV of $9.4 billion, this represents a routine platform deal win that strengthens its footprint in the Asia-Pacific BFSI market.
- TCS BaNCS platform selected by MyState Limited to integrate operations following merger with Auswide Bank
- Contract value and implementation timeline: not disclosed
- TCS generated consolidated revenues of over US $30 billion in the fiscal year ended March 31, 2026
- Deployment covers core banking, payments, CRM, and digital operations across 194 global delivery centres network
Tata Consultancy Services (TCS) issued a clarification regarding the US Government's announcement on the Permanent Labor Certification Program (PERM). The company stated that its PERM applications were in single digits over the last two years, meaning the suspension will not impact its workforce strategy or client delivery. TCS reiterated its focus on local hiring, operating across 31 offices and delivery centers in the US. The company also reaffirmed plans to hire an additional 15,000 employees locally in the US over the next five years.
- PERM applications were in single digits over the last two years
- Intends to hire an additional 15,000 people in the US over the next five years
- Currently operates across 31 offices and delivery centers in the US
TCS declared a second interim dividend of Rs 12 per equity share of face value Rs 1 for FY2026-27, with the record date set as October 14, 2026, and payment scheduled on October 30, 2026. For the six months ended September 30, 2026, standalone profit stood at Rs 27,746 crore compared to Rs 24,380 crore in the prior-year period. Net cash generated from standalone operating activities for H1 FY27 was Rs 18,235 crore versus Rs 21,990 crore in H1 FY26. Total standalone dividends paid during the half-year reached Rs 15,558 crore.
- Declared second interim dividend of Rs 12 per share of Rs 1 face value
- Record date fixed as October 14, 2026; dividend payout date is October 30, 2026
- Standalone H1 profit reached Rs 27,746 crore vs Rs 24,380 crore in H1 FY26
- Standalone net cash from operating activities stood at Rs 18,235 crore for H1 FY27
- Standalone dividend paid out during H1 FY27 totaled Rs 15,558 crore
TCS reported a consolidated revenue of ₹73,188 crore for the quarter ended September 30, 2026, growing 1.3% QoQ and 11.2% YoY in INR terms (0.5% QoQ in constant currency). Operating margin stood at 24.0%, and net profit reached ₹13,884 crore with a net margin of 19.0%. Total Contract Value (TCV) for the quarter remained strong at US$ 9.6 billion, while annualized AI revenue crossed US$ 3.1 billion (over 10% of total revenue). The Board declared an interim dividend of ₹12 per share with a record date of October 14, 2026.
- Q2 revenue reached ₹73,188 crore, up 1.3% QoQ and 11.2% YoY in INR (+0.5% QoQ CC)
- Net profit recorded at ₹13,884 crore with operating margin at 24.0%
- Total Contract Value (TCV) stood at US$ 9.6 billion; annualized AI revenue exceeded US$ 3.1 billion
- Declared an interim dividend of ₹12 per share (Record Date: Oct 14, 2026; Payment Date: Oct 30, 2026)
- Announced 5-year Porsche AG partnership including acquisition of 100% of MHP, plus Best Buy GCC transition
TCS declared a second interim dividend of Rs 12 per equity share of face value Rs 1 for FY2026-27, with the record date set as October 14, 2026, and payment scheduled on October 30, 2026. For the six months ended September 30, 2026, standalone profit stood at Rs 27,746 crore compared to Rs 24,380 crore in the prior-year period. Net cash generated from standalone operating activities for H1 FY27 was Rs 18,235 crore versus Rs 21,990 crore in H1 FY26. Total standalone dividends paid during the half-year reached Rs 15,558 crore.
- Declared second interim dividend of Rs 12 per share of Rs 1 face value
- Record date fixed as October 14, 2026; dividend payout date is October 30, 2026
- Standalone H1 profit reached Rs 27,746 crore vs Rs 24,380 crore in H1 FY26
- Standalone net cash from operating activities stood at Rs 18,235 crore for H1 FY27
- Standalone dividend paid out during H1 FY27 totaled Rs 15,558 crore
TCS declared a second interim dividend of Rs 12 per equity share of face value Rs 1 for FY2026-27, with the record date set as October 14, 2026, and payment scheduled on October 30, 2026. For the six months ended September 30, 2026, standalone profit stood at Rs 27,746 crore compared to Rs 24,380 crore in the prior-year period. Net cash generated from standalone operating activities for H1 FY27 was Rs 18,235 crore versus Rs 21,990 crore in H1 FY26. Total standalone dividends paid during the half-year reached Rs 15,558 crore.
- Declared second interim dividend of Rs 12 per share of Rs 1 face value
- Record date fixed as October 14, 2026; dividend payout date is October 30, 2026
- Standalone H1 profit reached Rs 27,746 crore vs Rs 24,380 crore in H1 FY26
- Standalone net cash from operating activities stood at Rs 18,235 crore for H1 FY27
- Standalone dividend paid out during H1 FY27 totaled Rs 15,558 crore
Tata Consultancy Services (TCS) has entered into a multi-year agreement to transition Best Buy's Global Capability Center (GCC) in India into TCS. Best Buy India employees and operations will transition to TCS to transform the center into an AI-native Capability Center (AICC). Specific financial terms, deal value, and employee headcounts were not disclosed in the announcement. Against TCS's TTM revenue of ₹2,75,859 crore, this contract adds to its consumer retail portfolio and deepens its strategic AI transformation offering.
- Multi-year agreement signed to transition Best Buy's India Global Capability Center to TCS
- Best Buy India employees to be absorbed into TCS's global organization across 56 countries
- Center to transform into an AI-native Capability Center (AICC) leveraging TCS frameworks
- Deal value and employee headcount not disclosed in the announcement
- Adds to TCS's enterprise client portfolio alongside its FY26 consolidated revenue base of over US$30 billion
Tata Consultancy Services (TCS) has signed an agreement to acquire a 100% partnership interest in Bengaluru-based BBY Services India LLP for a cash consideration of INR 1 Lakh. BBY Services India employs approximately 450 professionals in Engineering, Data & Analytics, and AI, clocking a turnover of INR 294.53 crore in FY26 (up from INR 48.12 crore in FY25). Relative to TCS's TTM revenue of ₹2,75,859 crore, the acquisition is financially immaterial (<0.11% of turnover), but functions as a strategic tuck-in to establish an AI Native Capability Center. The transaction is slated to conclude within 3-4 weeks from signing, subject to customary closing conditions.
- Acquiring 100% partnership interest in BBY Services India LLP for a nominal cash consideration of INR 1 Lakh
- Target posted turnover of INR 294.53 crore in FY 2025-26, compared to INR 48.12 crore in FY 2024-25 and NIL in FY 2023-24
- Adds an employee base of ~450 specialized in Engineering, Data & Analytics, and AI
- Deal completion expected within 3 – 4 weeks from agreement signing without regulatory approval hurdles
Tata Consultancy Services (TCS) has signed an agreement to acquire a 100% partnership interest in Bengaluru-based BBY Services India LLP for a cash consideration of INR 1 Lakh. BBY Services India employs approximately 450 professionals in Engineering, Data & Analytics, and AI, clocking a turnover of INR 294.53 crore in FY26 (up from INR 48.12 crore in FY25). Relative to TCS's TTM revenue of ₹2,75,859 crore, the acquisition is financially immaterial (<0.11% of turnover), but functions as a strategic tuck-in to establish an AI Native Capability Center. The transaction is slated to conclude within 3-4 weeks from signing, subject to customary closing conditions.
- Acquiring 100% partnership interest in BBY Services India LLP for a nominal cash consideration of INR 1 Lakh
- Target posted turnover of INR 294.53 crore in FY 2025-26, compared to INR 48.12 crore in FY 2024-25 and NIL in FY 2023-24
- Adds an employee base of ~450 specialized in Engineering, Data & Analytics, and AI
- Deal completion expected within 3 – 4 weeks from agreement signing without regulatory approval hurdles
Tata Consultancy Services (TCS) has announced a multi-year renewal of its title partnership with Jaguar TCS Racing, expanding its scope to serve as the Official AI Partner for Formula E's upcoming GEN4 era. The financial terms and contract value of this sponsorship and technology partnership were not disclosed. The collaboration builds on a five-year association during which the team secured the 2024 and 2026 Teams' World Championships. TCS intends to utilize its Virtual Vehicle Validation Model (V3M) and AI capabilities to support racing operations and electric vehicle development for Jaguar Land Rover.
- Renewed multi-year title partnership and expanded scope to Official AI Partner for Formula E GEN4 (Seasons 13-16).
- Deal value and commercial terms: not disclosed (against TCS TTM revenue of ₹2,75,859 crore).
- Jaguar TCS Racing secured 4 victories and 10 podiums in the 2025/26 season to claim the Teams' World Championship.
- TCS plans to create 5,000 new jobs across the UK over the next 3 years.
- Through its Ignite My Future initiative, nearly 30,000 students across 16 countries have engaged with the racing STEM program.
Tata Consultancy Services (TCS) has scheduled a Board of Directors meeting on October 8, 2026, to approve its audited standalone and consolidated financial results for Q2 FY2027 (period ending September 30, 2026). The board will also consider the declaration of a second interim dividend for FY2026-27. If approved, the record date for determining shareholder eligibility for this dividend has been fixed as October 14, 2026. Additionally, the insider trading window closes from September 23, 2026, until 48 hours post-results announcement.
- Board meeting scheduled for Thursday, October 8, 2026, to consider Q2 FY2027 results and interim dividend
- Record date for the second interim dividend set for Wednesday, October 14, 2026
- Trading window closed from Wednesday, September 23, 2026, until 48 hours after financial results become public
Tata Consultancy Services (TCS) has secured a long-term strategic partnership with Germany's Aareal Bank to modernize its technology operations via an AI-powered, cloud-first delivery model. TCS will manage end-to-end IT infrastructure, data centers, cloud platforms, workplace services, and cybersecurity. Total contract value and financial terms were not disclosed in the announcement. This aligns with TCS's focus on continental European expansion and scaling its AI transformation business amidst its TTM revenue base of Rs 275,859 Cr.
- Long-term strategic partnership signed with Wiesbaden-based Aareal Bank to overhaul IT infrastructure
- Scope covers cloud platforms, data centers, workplace services, and cybersecurity using TCS's AI-led delivery model
- Deal value and multi-year contract duration are not disclosed
- TCS currently operates in Germany since 1991 and has close to 15,000 employees across Europe
Financial Performance
Revenue Growth by Segment
Manufacturing segment revenue reached INR 25,170 Cr in FY2025, growing 7.1% YoY. Other segments contributed INR 23,011 Cr, reflecting a 9.7% growth. Overall revenue from operations was INR 255,324 Cr in FY2025, a 6.0% increase compared to INR 240,893 Cr in FY2024.
Geographic Revenue Split
North America and Europe (including the UK) are the primary markets, driving over 81% of total revenue in FY2025. In FY2024, these regions accounted for approximately 83% of revenue. Growth in these markets has moderated, though the UK remained resilient.
Profitability Margins
Operating Profit Margin (OPM) stood at 26.6% in Q1 FY2026. Profit After Tax (PAT) margin was 19.1% in FY2025 (INR 48,553 Cr) and 19.3% in FY2024 (INR 46,585 Cr). PAT margin improved to 20.2% in Q1 FY2026.
EBITDA Margin
OPBDIT/OI (Operating Margin) was 26.4% in FY2025, compared to 26.7% in FY2024 and 26.3% in FY2023. EBIT (Earnings Before Interest and Tax) for FY2025 was INR 62,165 Cr, representing 24.3% of revenue and a 4.8% YoY growth.
Capital Expenditure
TCS is planning investments in AI and sovereign data centers estimated between $600 million and $1 billion (INR 5,000 Cr to INR 8,400 Cr approx.), to be phased out over time.
Credit Rating & Borrowing
Maintains a top-tier credit profile with a 'Stable' outlook. Interest coverage ratio was 96.3x in Q1 FY2025, up from 82.6x in FY2024. Total debt/OPBDIT remains extremely low at 0.1x.
Operational Drivers
Raw Materials
Not applicable for IT services; however, human capital/employee cost is the primary driver, representing the bulk of operational expenses.
Raw Material Costs
Employee wage cost inflation is a key factor. Attrition levels were 13.8% in Q1 FY2026, up from 12.1% in Q1 FY2025, but significantly lower than the 21.5% peak in Q2 FY2023.
Manufacturing Efficiency
Utilization levels have been improved to support margins. Execution track record is established through a CMMI-level 5 certification.
Logistics & Distribution
Not applicable; services are delivered through a global offshore model and digital platforms.
Strategic Growth
Expected Growth Rate
6.00%
Growth Strategy
Growth is driven by a robust order pipeline with a Total Contract Value (TCV) of $9.4 billion as of Q1 FY2026. Strategy includes becoming an AI-led technology services company, investing in sovereign data centers, vendor consolidation deals, and expanding AI-led platforms and productized SaaS offerings.
Products & Services
IT solutions, infrastructure services, global consulting, engineering and industrial services, Business Process Management (BPM), and software products like BaNCS (financial solutions).
Brand Portfolio
TCS, BaNCS.
New Products/Services
AI-led platforms and sovereign digital stacks; specific revenue contribution percentages for new launches are not disclosed.
Market Expansion
Focus on India, UK, Asia Pacific, and Middle East markets to offset moderation in North America and Continental Europe.
Market Share & Ranking
Largest Indian IT services company; industry leader in operating margins and return on equity (ROE).
Strategic Alliances
Stronger partnerships with emerging industrial sectors and co-innovation partnerships with enterprises.
External Factors
Industry Trends
Shift toward AI-led services, sovereign digital stacks, and energy transition/circular economy technology.
Competitive Landscape
Intense competition from global players (Accenture, IBM, Capgemini, Cognizant) and domestic peers (Infosys, HCL Tech, Wipro).
Macro Economic Sensitivity
Highly sensitive to global GDP growth, projected at 2.8% for 2025. Revenue growth in constant currency terms was 4.2% in FY2025.
Consumer Behavior
Clients are re-evaluating discretionary technology spending due to macro-economic uncertainty, leading to slower deal conversions.
Geopolitical Risks
Exposure to US tariff uncertainties and adverse regulatory/legislative changes in key operating markets (North America and Europe).
Regulatory & Governance
Industry Regulations
Subject to immigration laws and data privacy regulations; potential for substantive liabilities or fines in case of data breaches.
Environmental Compliance
Direct exposure to environmental risks is considered not material for the service-oriented business.
Taxation Policy Impact
Effective tax rate is reflected in the PAT/OI of 19.1% for FY2025.
Legal Contingencies
FY2024 results excluded a specific settlement of a legal claim; total contingent liability amounts not specified in snippets.
Risk Analysis
Key Uncertainties
Macro-economic uncertainties in key markets and potential adverse changes in immigration laws impacting the skilled workforce.
Geographic Concentration Risk
High concentration with ~81-83% of revenue derived from North America and Europe.
Third Party Dependencies
Dependency on skilled talent pool and niche technology partners for large-scale contract execution.
Technology Obsolescence Risk
Risk of rapid technology disruption; mitigated by perpetual reskilling of talent and AI-led platform expansion.
Credit & Counterparty Risk
Superior liquidity with cash and bank balances of INR 48,704 Cr as of June 30, 2025, ensuring high receivables quality.
