In short: TCS's Q2 FY27 revenue rose 11.2% to ₹73,188 crore from a year earlier, and net profit rose 15.0% to ₹13,884 crore (+7.6% excluding one-time items). Operating margin was 24.0%, unchanged from the previous quarter. Growth came from international markets, while India revenue fell 10.3% from the previous quarter.
What changed in TCS's Q2 FY27 results
- Revenue from operations was ₹73,188 crore, up 11.2% from a year earlier and up 1.3% from the previous quarter.
- Net profit was ₹13,884 crore, up 15.0% from a year earlier and up 4.0% from the previous quarter.
- Excluding one-time items in the earlier quarters (a ₹1,135 crore restructuring charge in Q2 FY26 and a ₹668 crore legal settlement in Q1 FY27, both before tax), net profit was up 7.6% from a year earlier and up 0.3% from the previous quarter.
- Operating margin was 24.0%, unchanged from the previous quarter and down 120 bps from a year earlier.
- Revenue was $7,642 million. In constant currency, revenue grew 2.8% from a year earlier and 0.5% from the previous quarter.
- Total contract value of deal wins: $9.6 billion, against $9.5 billion in the previous quarter.
- Headcount was 598,056, up 4,258 in the quarter. Voluntary attrition in IT services over the last twelve months was 13.3%.
- Interim dividend of ₹12 per share, with a record date of 14 October 2026.
TCS Q2 FY27 results at a glance
| Q2 FY27 | Q1 FY27 | Q2 FY26 | QoQ | YoY | |
|---|---|---|---|---|---|
| Revenue (₹ crore) | 73,188 | 72,275 | 65,799 | +1.3% | +11.2% |
| Net profit (₹ crore) | 13,884 | 13,349 | 12,075 | +4.0% | +15.0% |
| Net profit excl. one-time items (₹ crore) | 13,884 | 13,849 | 12,904 | +0.3% | +7.6% |
| Operating margin | 24.0% | 24.0% | 25.2% | 0 bps | −120 bps |
Genvest analysis
Growth came from outside India. TCS's international business grew 1.2% from the previous quarter in constant currency, but India revenue fell 10.3%, so total revenue grew 0.5% in constant currency. India is now 5.5% of revenue, down from 6.2% a quarter earlier.
Financial services, which is 32.8% of revenue, manufacturing and technology & services led the quarter, each growing 2.5–3.1% from the previous quarter in constant currency. Consumer business and energy, resources and utilities were slightly lower. Over the year, revenue grew 2.4% in dollars and 11.2% in rupees; the gap reflects the rupee's fall against the dollar.
Reported net profit rose 15.0% from a year earlier, but the year-ago quarter carried a ₹1,135 crore restructuring charge. On TCS's figures excluding one-time items, net profit rose 7.6% from a year earlier and 0.3% from the previous quarter. Operating margin was 24.0% for a second quarter running, down from 25.2% a year earlier.
Deal wins were $9.6 billion in total contract value, against $9.5 billion in the previous quarter. TCS announced a five-year partnership with Porsche that includes buying its consulting subsidiary MHP, subject to regulatory approval, and an agreement to take over Best Buy's capability centre in India. It put annualised AI revenue at $3.1 billion, more than 10% of revenue, up from $2.6 billion a quarter earlier.
Headcount rose by 4,258 to 598,056, and cash from operations was 102.2% of net profit. TCS does not give revenue or margin guidance, so the next reference point is the December quarter.
TCS revenue, margin and earnings trend
- Revenue went from ₹63,973 crore in Q3 FY25 to ₹73,188 crore in Q2 FY27, rising on the previous quarter in 6 of the last 7 quarters.
- Year-on-year revenue growth over the last 4 quarters ranged from 4.9% to 13.9% in rupees.
- In constant currency, growth on the previous quarter ranged from 0.4% to 1.2% over the last 5 quarters.
- Earnings per share over the last four quarters were ₹142.64, against ₹136.64 in the four quarters before (+4.4%).
- Operating margin ranged from 24.0% (Q1 FY27) to 25.3% (Q4 FY26); the latest 24.0% is 130 bps below the high.
| Quarter | Revenue (₹ crore) | YoY | CC growth QoQ | Operating margin | EPS (₹) |
|---|---|---|---|---|---|
| Q2 FY27 | 73,188 | +11.2% | +0.5% | 24.0% | 38.37 |
| Q1 FY27 | 72,275 | +13.9% | +0.4% | 24.0% | 36.90 |
| Q4 FY26 | 70,698 | +9.6% | +1.2% | 25.3% | 37.92 |
| Q3 FY26 | 67,087 | +4.9% | +0.8% | 25.2% | 29.45 |
| Q2 FY26 | 65,799 | +2.4% | +0.8% | 25.2% | 33.37 |
| Q1 FY26 | 63,437 | +1.3% | – | 24.5% | 35.27 |
| Q4 FY25 | 64,479 | – | – | 24.2% | 33.79 |
| Q3 FY25 | 63,973 | – | – | 24.5% | 34.21 |
Operating margins for Q2 FY26, Q3 FY26 and Q1 FY27 exclude one-time items, as TCS presents them. Earnings per share are as reported, so they include those items: restructuring of ₹1,135 crore in Q2 FY26, restructuring of ₹253 crore and a ₹2,128 crore Labour Codes charge in Q3 FY26, and a ₹668 crore legal settlement in Q1 FY27 (all before tax). EPS for Q2 FY25 and the March quarters is worked out from TCS's nine-month and full-year figures. Source: TCS fact sheets and Ind AS financial statements.
What TCS's results mean for fund investors
- Technology funds. Large IT services companies are usually among the biggest holdings of technology funds, so results days move these funds more than diversified equity funds.
- Index funds. IT services is one of the larger sectors in the Nifty 50, so Nifty 50 index funds also carry some of this result.
- One quarter is one data point. Fund returns depend on many holdings and on valuations over years, not on a single results day.
- Overlap. If you hold several technology funds, or IT shares alongside them, check how concentrated you are with the portfolio concentration calculator.
TCS Q2 FY27 results: questions
When did TCS announce Q2 FY27 results?
TCS announced its Q2 FY27 results on 8 October 2026.
What was TCS's Q2 FY27 net profit?
Net profit was ₹13,884 crore, up 15.0% from a year earlier and up 4.0% from the previous quarter. Excluding one-time items in the earlier quarters (a ₹1,135 crore restructuring charge in Q2 FY26 and a ₹668 crore legal settlement in Q1 FY27, both before tax), net profit was up 7.6% from a year earlier and up 0.3% from the previous quarter.
What was TCS's Q2 FY27 revenue?
Revenue from operations was ₹73,188 crore, up 11.2% from a year earlier and up 1.3% from the previous quarter.
Other IT Q2 FY27 results
- TCS Q2 FY27 results · 8 October 2026 · net profit +15.0% YoY
- HCLTech Q2 FY27 results · 12 October 2026
- Wipro Q2 FY27 results · 15 October 2026
- Tech Mahindra Q2 FY27 results · 15 October 2026
- Infosys Q2 FY27 results · 23 October 2026
All IT Q2 FY27 results in one place
Sources
- TCS Q2 FY27 press release (INR)
- TCS Q2 FY27 consolidated financial statements (Ind AS)
- TCS Q2 FY27 fact sheet
- TCS Q1 FY27 press release
- TCS Q1 FY26 fact sheet
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