Tata Consultancy Services (TCS) has announced the results for the second quarter of the financial year 2026-27. The company’s consolidated net profit grew by 15% year-on-year to Rs. 13,884 crores. In the same quarter last year, the company’s profit was Rs. 12,075 crores.

The board of the company for the financial year 2026-27 has fixed Rs. Also declared another interim dividend of 12. TCS’s revenue from operations rose 11% in the quarter to Rs. 73,188 crores. In the same period last year it was Rs. 65,799 crores. On a constant currency basis, quarter-on-quarter revenue increased by 0.5%. The company’s operating margin was 24% and net margin was 19%.

Earnings are increasing due to AI

According to TCS, its annual AI-related revenue reached $3.1 billion in the second quarter. This is more than 10% of the company’s total revenue. Aarti Subramaniam, the company’s executive director and president and COO, said demand for AI-related work is strong. These include AI based solutions, enterprise transformation, autonomous business services and cyber security.

CEO & MD of TCS. Kritivasan said the company has seen extensive growth in international markets and across most industry segments. He described the agreements with Porsche and Best Buy as a new type of partnership for digital transformation.

$9.6 billion in contracts received

TCS’ total contract value in the second quarter was $9.6 billion. This is considered important for the company amid weak IT demand. TCS has a 5-year partnership with Porsche AG. In addition, the company is also working on a possible acquisition of MHP, Porsche’s Germany-based management and IT consulting company. The company has also signed an agreement to transfer Best Buy’s India-based Global Capability Center to TCS and convert it into an AI capability center.

BFSI and growth in manufacturing

Segment-wise, BFSI i.e. banking, financial services and insurance was the largest business of TCS. In constant currency, it rose 2.5% on a quarterly basis. Both manufacturing and technology and services grew by 3.1%. The consumer business was down 0.7% and the energy, resources and utilities business was down 0.5%. Regional markets and other business recorded a major decline of 5.8%. On a year-on-year basis, technology and services grew by 4.8%, manufacturing by 4.2% and BFSI by 3.9%.

Strong growth in UK, revenue decline in India

Among the regional markets, the UK was the strongest core market for TCS. Here, revenue rose 3.5% quarter-on-quarter in constant currency. Asia Pacific grew by 2% and Latin America by 4.3%. While North America and Continental Europe grew by only 0.4%. TCS’s revenue in India fell 10.3% quarter-on-quarter, though it grew 6% year-on-year.

The number of employees is about 6 lakhs

At the end of the quarter, TCS had 5,98,056 employees. The attrition rate in IT services has remained steady at 13.3% over the past 12 months. According to the company, continuous investment is also being made in employee training. In the second quarter, teaching hours increased by 17% to 1.71 crore hours.

The company’s cash generation was also strong. Net cash flow from operations Rs. 14,190 crore, which is 102.2% of net income. CFO Sameer Saksaria said the company continues to invest in acquisitions, partnerships and new talent while maintaining strong cash conversions and profitability.