Tata Consultancy Services (TCS), India's largest IT services company, announced its financial results for the second quarter (July to September) of fiscal year 2027 on October 8. The company reported a 15% increase in consolidated net profit compared to the same quarter last year, driven by strong revenue growth and new business deals. Alongside the earnings report, TCS declared a second interim dividend of ₹12 per share for eligible shareholders.
- Net profit rose 15% year-on-year to ₹13,884 crore in Q2 FY27.
- Revenue from operations increased 11.2% to ₹73,188 crore.
- Total contract value (TCV) reached $9.6 billion by September 2026.
- Operating profit (EBITDA) grew 4.6% to ₹18,815 crore.
- EBITDA margin decreased by 162 basis points to 25.70%.
- Operating margin stood at 24%, and net margin at 19%.
What were the key financial highlights for TCS in Q2 FY27?
TCS's consolidated net profit attributable to shareholders increased by approximately 15% to ₹13,884 crore in the quarter ending September 2026. This compares to ₹12,075 crore in the same quarter of the previous year. The company’s revenue from core operations rose 11.2% to ₹73,188 crore, up from ₹65,799 crore a year earlier.
How did TCS perform in terms of new business deals?
The total contract value (TCV), which represents the total value of deals secured during the quarter, surged to $9.6 billion as of September 2026. This increase reflects TCS’s strong market position and ability to attract new clients and contracts in a competitive IT services industry.
What about TCS’s operating profit and margins?
The company’s operating profit, measured as earnings before interest, tax, depreciation, and amortisation (EBITDA), increased by 4.6% to ₹18,815 crore in Q2 FY27, compared to ₹17,978 crore in the same quarter last year. However, despite the growth in operating profit, the EBITDA margin contracted by 162 basis points, falling to 25.70% from 27.32% in the previous year’s quarter.
TCS’s operating margin was reported at 24%, while the net margin stood at 19% for the quarter. These figures indicate that while the company is growing its profits and revenue, some cost pressures or investments may have affected margin percentages.
What dividend did TCS declare for shareholders?
Along with the earnings announcement, TCS declared a second interim dividend of ₹12 per share. This dividend is payable to shareholders who are registered by the predetermined record date set by the company. The dividend reflects TCS’s commitment to returning value to its shareholders amid strong financial performance.
What does this performance mean for TCS and the IT industry?
TCS’s strong quarterly results demonstrate its continued leadership in the IT services sector. The growth in revenue, profit, and contract value highlights the company’s ability to expand its business and secure significant deals globally. While margin pressures exist, the overall financial health remains robust, supporting ongoing investments and shareholder returns.
