Tata Consultancy Services reports 15 percent jump in second quarter net profit with strong artificial intelligence revenue growth

Tata Consultancy Services posted a 15 percent year-on-year rise in consolidated net profit to ₹13,884 crore for the quarter ended September 30, 2026. Revenue for the period increased 11.2 percent to ₹73,188 crore, while net margin reached 19 percent and operating margin stood at 24 percent. Total contract value reached $9.6 billion during the quarter.

AI Growth and Deals

Annualised artificial intelligence revenue crossed $3.1 billion, making up more than 10 percent of total revenue. Chief Executive Officer and Managing Director K Krithivasan stated that partnerships with Porsche and Best Buy represent a new category of transformation work aimed at building repeatable platforms to industrialise artificial intelligence at scale. Executive Director Aarthi Subramanian noted that demand for native artificial intelligence solutions and autonomous global business services continues to accelerate alongside strong focus on cybersecurity. Chief Financial Officer Samir Seksaria added that the firm maintains robust profitability and cash conversion while investing in niche talent and acquisitions.

Workforce and Dividends

The company workforce grew to 598,056 employees at the end of the quarter, compared to 593,314 a year earlier, with IT services attrition holding stable at 13.3 percent. Employee learning hours rose 17 percent sequentially to 17.1 million hours. Net cash from operations came in at ₹14,190 crore, which equals 102.2 percent of net income. The board recommended a dividend of ₹12 per share, with October 14 set as the record date and payment scheduled for October 30.

Context

Major technology services firms frequently track metrics like contract value and attrition to gauge sector demand and operational health. Large enterprises increasingly rely on external vendors to manage large-scale digital transformations and artificial intelligence integration.