Tata Consultancy Services Posts Q2 Net Profit of Rs 13,884 Crore and Announces Dividend

Tata Consultancy Services has declared its second quarter financial results for fiscal year 2027, posting a net profit of ₹ 13,884 crore and a net margin of 19.0 percent. According to Bloomberg estimates, the company's performance beat expectations on revenue and profit. International revenue grew by 1.2 percent quarter-on-quarter in constant currency, while the total contract value for the quarter stood at US$ 9.6 billion. The firm also confirmed a dividend of ₹ 12 per share, with the record date set for October 14, 2026, and the payment date on October 30, 2026.

Deals and AI Growth

Chief Executive Officer and Managing Director K Krithivasan stated that the company secured broad-based growth across international markets and most industry segments. The quarter featured two major transformation partnerships, including a five-year strategic partnership with Porsche AG alongside the acquisition of its Germany-based subsidiary MHP, and an agreement to transition Best Buy's Global Capability Center in India into an AI Capability Center. Executive Director and Chief Operating Officer Aarthi Subramanian noted that annualized AI revenue crossed US$ 3.1 billion, now representing over 10 percent of total revenue.

Financials and Workforce

Chief Financial Officer Samir Seksaria highlighted that the firm maintained strong cash conversion, with net cash from operations reaching ₹ 14,190 crore, which amounts to 102.2 percent of net income. Chief HR Officer Sudeep Kunnumal reported that total workforce strength reached 598,056 employees, backed by a 17 percent sequential increase in learning hours to 17.1 million. IT services attrition remained stable at 13.3 percent over the last twelve months.

Context

Major IT services companies in India regularly report quarterly earnings that serve as a key health check for global technology spending and enterprise software demand. Metrics like total contract value and attrition rates offer a clear look at how the sector handles large client projects and retains skilled talent in a competitive market.