Tata Consultancy Services (TCS) announced its July‑to‑September quarter earnings on Thursday, 8 October, reporting a 15 % year‑on‑year rise in consolidated net profits to ₹13,884 crore, up from ₹12,075 crore a year earlier. The IT services giant also declared a second interim dividend of ₹12 per share for eligible shareholders, with a record date of 14 October and payment scheduled for 30 October. The company’s revenue from core operations climbed 11.2 % to ₹73,188 crore, while total contract value (TCV) surged to $9.6 billion as of the quarter end. This performance reflects continued demand across its service segments.

TCS’s operating profit, measured as earnings before interest, tax, depreciation and amortisation (EBITDA), rose 4.6 % to ₹18,815 crore in the September quarter, compared with ₹17,978 crore in the same period a year earlier. However, EBITDA margins contracted by 162 basis points to 25.70 %, down from 27.32 % in the corresponding quarter of the previous year. The company’s operating margin stood at 24 %, while the net margin was 19 % in the second quarter of FY27. The margin contraction reflects higher cost pressures amid expanding service delivery levels.

A detailed look at revenue shows that TCS’s BFSI segment grew 12.3 % YoY to ₹28,882 crore, up from ₹25,717 crore a year earlier. Consumer Business revenue increased 7.5 % YoY to ₹11,137 crore, compared with ₹10,351 crore in the prior year. These two verticals remained the largest contributors to overall revenue, while other segments also experienced growth driven by steady market demand. The BFSI growth was supported by increased digital transformation projects, while the consumer segment benefited from expanding e‑commerce and fintech initiatives across multiple geographies in the last quarter.

K Krithivasan, CEO and Managing Director of TCS, credited the company’s Q2 performance to broad‑based growth across international markets and industry segments. He highlighted two landmark deals with Porsche AG and Best Buy, describing them as new categories of transformation partnerships that will industrialise AI at scale. Krithivasan also noted that AI revenues remained strong, with $3.1 billion recorded in the quarter, surpassing 10 % of total revenue. The CEO emphasized that these wins reinforce TCS’s position as a leader in digital transformation and AI services worldwide.

The board of directors, meeting on 8 October, declared a second interim dividend of ₹12 per equity share of ₹1 each for the financial year 2026‑27. Eligible shareholders will receive the dividend 24 hours before the official record date set for 14 October. The payment is scheduled for 30 October, with the dividend to be distributed to all eligible shareholders who hold shares up to 24 hours prior to the record date. This dividend policy reflects TCS’s commitment to returning value to shareholders while maintaining investment in growth initiatives.

TCS’s Q2 results come amid a broader market backdrop where the SENSEX fell 1,045 points and the NIFTY dropped 1.6 % on 8 October, driven by oil prices topping $104. The company’s performance, however, showcases resilience in its core IT services business, with strong revenue growth, expanding contract value and a solid dividend payout. Investors and analysts will likely scrutinise the margin contraction and cost dynamics as the firm continues to scale its AI and digital transformation offerings globally. The firm’s strategic focus on high‑margin AI projects is expected to drive future profitability.