New Delhi, October 10, 2026: Tata Consultancy Services (BSE: 532540, NSE: TCS) reported its consolidated financial results according to Ind AS and IFRS, for the quarter ending September 30, 2026.
Highlights of the Quarter Ended September 30, 2026
- Q2 Revenue at ₹73,188 crore; Growth +1.3% QoQ, +11.2% YoY in INR, +0.5% QoQ in CC
- International Revenue grows 1.2% QoQ in Constant Currency
- BFSI (+2.5% QoQ CC), Manufacturing (+3.1% QoQ CC) and Technology & Services (+3.1% QoQ CC) led growth
- Annualized AI Revenue at US$ 3.1 billion in Q2FY27, crosses 10% of Revenue
- Q2 Total Contract Value (TCV): US$ 9.6 billion
- Operating Margin at 24.0%
- Net Profit at ₹13,884 crore | Net Margin at 19.0%
- Net Cash from Operations at ₹14,190 crore i.e. 102.2% of Net Income
- Workforce strength: 598,056; LTM Attrition (IT Services): 13.3%
- Dividend per share: ₹12 per share| Record date 14-Oct-2026 | Payment date 30-Oct-2026
K Krithivasan, Chief Executive Officer and Managing Director, said “We are pleased with the broad-based growth in all our international markets and most industry segments. This quarter we announced two unique deals with Porsche and Best Buy which represent a new category of transformation partnerships. Together with our clients, we are building repeatable value platforms that will industrialize AI at scale.“
Aarthi Subramanian, Executive Director – President and Chief Operating Officer, said “AI momentum remained strong, with annualized AI revenues now exceeding $3 billion. Demand for delivering business outcomes with AI-native solutions, AI-led transformation of enterprise systems and autonomous GBS, continues to accelerate. Cybersecurity remains a top priority as customers sharpen their focus on resilience and recovery. TCS’ Human+AI Services Autonomy model for AMS earned top rankings from customers, underscoring the strength of our differentiated capabilities.” amir Seksaria, Chief Financial Officer, said, “We continued to strengthen our capabilities through acquisitions, partnerships and investments in niche talent. In addition, we maintained strong cash conversion and industry-leading profitability, along with our focus on creating sustainable long-term value for all stakeholders.”
Sudeep Kunnumal, Chief HR Officer, said “We continue to build a future-ready workforce through upskilling our employees and hiring top talent. Investments in learning and critical skills drove a 17% sequential increase in learning hours to 17.1 million. This quarter our employee base reached over 598,000, while attrition remained stable at 13.3%.”
Q2 FY27 Segment Highlights
Growth by Domain
| Industry | Composition (%) | Q-o-Q CC Growth (%) |
Y-o-Y CC Growth (%) |
|||
| Q2 FY26 | Q1 FY27 | Q2 FY27 | ||||
| BFSI | 32.2 | 32.1 | 32.8 | 2.5 | 3.9 | |
| Consumer Business | 15.3 | 15.0 | 14.9 | – 0.7 | – 1.0 | |
| Life Sciences & Healthcare | 10.5 | 10.3 | 10.3 | 0.3 | 0.5 | |
| Manufacturing | 8.8 | 8.7 | 9.0 | 3.1 | 4.2 | |
| Technology & Services | 8.5 | 8.5 | 8.6 | 3.1 | 4.8 | |
| Communication & Media | 5.9 | 5.8 | 5.8 | 0.1 | 0.5 | |
| Energy, Resources and Utilities | 5.9 | 6.3 | 6.2 | – 0.5 | 5.7 | |
| Regional Markets & Others | 12.9 | 13.3 | 12.4 | – 5.8 | 3.6 | |
| Total | 100.0 | 100.0 | 100.0 | 0.5 | 2.8 | |
Growth by Markets
| Geography | Composition (%) | Q-o-Q CC Growth (%) |
Y-o-Y CC Growth (%) |
|||
| Q2 FY26 | Q1 FY27 | Q2 FY27 | ||||
| Americas | ||||||
| North America | 48.8 | 48.3 | 48.3 | 0.4 | 1.5 | |
| Latin America | 1.9 | 2.0 | 2.1 | 4.3 | 1.7 | |
| Europe | ||||||
| UK | 17.5 | 17.2 | 17.8 | 3.5 | 4.5 | |
| Continental Europe | 15.3 | 15.4 | 15.2 | 0.4 | 3.3 | |
| Asia Pacific | 8.3 | 8.4 | 8.6 | 2.0 | 4.1 | |
| India | 5.8 | 6.2 | 5.5 | – 10.3 | 6.0 | |
| MEA | 2.4 | 2.5 | 2.5 | 0.4 | 2.0 | |
| Total | 100.0 | 100.0 | 100.0 | 0.5 | 2.8 | |
Key Highlights for the quarter
- Announced a five-year strategic partnership with Porsche AG. As part of the deal, TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche to drive innovation across manufacturing, engineering, operations and customer experience. TCS, through its subsidiary, will acquire 100% of MHP Management- und IT-Beratung GmbH (MHP), Porsche’s Germany-based management and IT consulting subsidiary. The proposed partnership and acquisition remain subject to regulatory approvals.
- Announced an agreement to transition Best Buy’s Global Capability Center (GCC) in India to TCS, combining the GCC’s retail and enterprise knowledge with TCS’s technology, engineering, AI and global delivery capabilities. The partnership will leverage TCS’ Global Value & Innovation Centres framework to redesign workflows, develop AI-powered solutions and transform the GCC into an AI Capability Center (AICC).
- Selected by Honeywell Technologies as its global end-to-end SAP S/4HANA business transformation partner to establish a future-ready digital core and simplify & standardize enterprise operations in alignment with its world class Accelerator Operating System. Leveraging TCS Crystallus™ and RISE with SAP, TCS will standardize processes, and modernize the application landscape to enable greater operational visibility, support faster decision-making, and enhance the customer experience, while providing a scalable foundation for continued enterprise automation and AI initiatives.
- Announced a long-term strategic partnership with Aareal Bank, a leading international property specialist, for providing end-to-end support to its infrastructure landscape, including data centre operations, cloud platforms, workplace services, cybersecurity, and infrastructure management services. Leveraging its AI-led delivery model, intelligent automation capabilities, and deep financial services expertise, TCS will help simplify technology operations, improve service quality, enhance security, and create a more agile and scalable technology environment aligned with the bank’s long-term strategic objectives.
- Strategic partnership with Vodafone Business, the enterprise arm of VodafoneThree — the United Kingdom’s largest mobile operator. This synergy will help customers modernise technology, accelerate digital adoption, reduce complexity, and scale to achieve stronger business outcomes and customer experience.
- Launched the TCS Industrial Autonomy & Engineering Lab Lights-Out Factory, at its Sahyadri Park campus in Pune. As India’s maiden lights-out factory lab, this facility will simulate how self-optimising factories can automate operations using the TCS Human+AI Service Autonomy Model. It brings together technologies such as digital twins, robotics, industrial AI, factory control systems and real-time operational intelligence and seamlessly combines them for live manufacturing environments.
- Launched TCS Autonomous Engineering Lab Powered by NVIDIA at its Global Axis campus in Bengaluru. The new facility will serve as a physical AI hub to accelerate the development and real-world deployment of AI-led solutions across mobility and manufacturing using NVIDIA AI Infrastructure.
- TCS and Google Cloud have set up a new Gemini Experience Center (GEC) in Mexico City, TCS’ second in Latin America and the ninth worldwide. The new facility will empower organizations in the region with advanced AI capabilities and help accelerate the development of solutions that drive innovation, productivity, and data-driven decision-making. We also launched the Consumer Business Group (CBG) Gemini Experience Center (GEC) in Kolkata, India. The center will showcase AI-led innovations tailored for consumer business needs and built with Google Cloud and Google’s Gemini models.
- Launched a 4,500-square-feet AI-native TCS Interactive Creative Engineering Studio in London, which will serve as the hub for creative, industry, and engineering teams to collaborate with clients and brands to unlock new revenue growth, market expansion, and operational efficiency.
- Launched TCS ADDTM AgentHub, a role-based, enterprise-ready, and trusted AI platform that enables the use of agentic AI in drug development at scale. This new agentic AI workforce transforms clinical trials and pharmacovigilance services while maintaining regulatory and audit requirements.
- Partnered with the Dubai Gold & Commodities Exchange (DGCX) to modernise and future-proof its market infrastructure through a next-generation integrated trading, clearing, and surveillance solution. The transformation programme will support future growth, improve operational efficiency, accelerate new product development, and strengthen DGCX’s ability to respond to evolving market needs.
- Launched the Consumer Business Group (CBG) Gemini Experience Center (GEC) in Kolkata, India. The center will showcase AI-led innovations tailored for consumer business needs and built with Google Cloud and Google’s Gemini models.
- Launched Custom System-on-Chip (SoC) Design Services for automotive OEMs and semiconductor ecosystem companies. It brings together semiconductor engineering, VLSI (Very Large-Scale Integration) design, hardware-software co-design, and system validation capabilities. The comprehensive set of services cover every stage of silicon development, including architecture, design, verification, implementation, software integration, and system validation. This will help auto manufacturers conceive, design, verify, implement, and validate custom SoC solutions for the next-generation of software-defined vehicles.
Customer Speak
“Porsche is taking another important step in its strategy to focus resolutely on its core business with the transfer of MHP to Tata Consultancy Services. At the same time, we are gaining a strategic partner in TCS. By combining Porsche’s automotive expertise with TCS’ digital technology and AI capabilities, we will further strengthen our innovative power, increase efficiency, and boost our competitiveness in an increasingly data and software-driven world of mobility.”
Dr. Michael Leiters, CEO, Porsche AG
“Our India team has played an important role in advancing Best Buy’s priorities, and we wanted a partner that understood both the business context and the value of this team. TCS brings that understanding, along with the technology and AI capabilities to build on the team’s strengths and meaningful opportunities for employees to continue learning and growing in their careers.”
Ahrey Smith, Vice President of Technology Strategy and Transformation, Best Buy
“With the combination of our world-class Accelerator Operating System and TCS as our trusted transformation partner, we continue to optimize our end-to-end operations across the enterprise while strengthening our integration of AI and advanced digital capabilities.”
Peter Kropik, Chief Digital Officer, Honeywell Technologies
“A modern, resilient and efficient technology platform is key to facilitating our business strategy. By partnering with TCS, we are strengthening our technology capabilities and creating the foundation for the next stage of our transformation journey. TCS brings extensive experience in financial and cloud services.”
Dr Christian Ricken, CEO, Aareal Bank
“Building on DGCX’s recent momentum, including strong trading volumes in 2025 and the launch of innovative products such as our Gold Spot T+0 Contract, we are advancing our infrastructure to ensure our members benefit from the risk management tools they need to trade with confidence. Our partnership with Tata Consultancy Services will build the technology foundation for the next stage of our growth, strengthening our offering across energy, currencies, equities, and precious metals, while giving us greater capacity to develop and bring new products to market. Dubai is already one of the world’s major centres for commodities and capital flows, and we will continue to build and enhance our market infrastructure to match that position, while also connecting more regional and international participants with the products, technology, and connectivity needed to access global opportunities.”
Ahmed Bin Sulayem, Chairman and Chief Executive Officer, DGCX
Partner Speak
“Physical AI is moving manufacturing from digital insight to autonomous real-world action. Through our partnership with TCS, we are bringing Gemini’s multimodal reasoning to the factory floor, enabling robots and systems to operate safely and intelligently in complex industrial environments.”
Kevin Ichhpurani, President, Global Partner Ecosystem, Google Cloud
“As enterprises push to operationalize AI across physical operations, they require specialized infrastructure to bridge the gap between simulation and real-world deployment. Through this collaboration, the TCS Industrial Autonomy & Engineering Lab leverages the full stack NVIDIA AI platform to offer customers a scalable pathway for validating and implementing their next-generation industrial solutions.”
Alvin DaCosta, Vice President, AI Consulting Partners organization, NVIDIA
“As artificial intelligence reshapes how organizations compete and create value, unlocking its full potential depends on giving businesses the right environment to adopt and apply AI with confidence. The Gemini Experience Center in Mexico is a powerful example of how our partner ecosystem is helping turn that vision into reality.”
Javier Carrique, Head of Partners & Alliances for Latin America, Google Cloud
“UK businesses are looking for partners who understand their market, their customers, and the pressure to modernise quickly. The challenge for many organisations is not ambition, it is execution: making the right technology choices, integrating them properly and turning investment into measurable impact. We are pleased to welcome TCS to our growing ecosystem of strategic partners, helping Vodafone Business deliver the services, expertise and digital experiences customers need to move faster, reduce complexity and grow with confidence.”
Nick Gliddon, Business Director, VodafoneThree
“Together with TCS, we are seeing how differentiated industry solutions built with Gemini are helping customers realize business value faster. The launch of the Gemini Experience Center in Kolkata marks a crucial step in accelerating agentic AI adoption, empowering consumer businesses to co-create, test, and scale next-generation innovations.”
Shivir Chordia, Director of Partnerships, India, Google Cloud
Research and Innovation
As of September 30, 2026, the company applied for 10,044 patents, including 241 applied during the quarter, and has been granted 5,885 patents including 215 granted during the quarter.
The above patent portfolio is inclusive of following AI led Inventions: 2,176 patents filed (cumulative) out of which 180 were applied during the quarter and 649 patents granted (cumulative) out of which 47 were granted during the quarter.
Awards and Recognition
- Positioned the foremost Leader or ranked #1 in 12 competitive assessments published by leading research houses. Notable reports where TCS ranked #1 are: HFS SaS Star Ratings Report on Agentic Application Management Services 2026 (AMS), NelsonHall NEAT Report on Salesforce Services 2026 – Overall and ISG Lens Report on ISG Provider Lens® Microsoft AI and Cloud Ecosystem – U.S 2026: Azure Data Transformation and AI Services
- Recognized by Forbes among America’s Best Employers by State 2026.
- Achieved its first-ever AAA brand strength rating and was ranked India’s most valuable IT services brand in the Brand Finance India 100 ‘2026 report.
- Earned multiple honors at the 2026 Stevie Awards, recognizing innovation in AI, talent development, HR technology, predictive operations, competitive intelligence, and the AI-powered TCS RunConcierge platform.
- Named AI Adopter of the Year at the India Risk Management Awards 2026 for advancing responsible AI-driven risk management.
- Honored as EDB GSI Partner of the Year 2026 for enabling AI-ready data foundations and driving customer innovation.
- Won Best Paper at DVCon India 2026 for pioneering AI-driven semiconductor verification research.
- Received the Asian Development Bank (ADB) Performance Excellence Award for outstanding delivery as a strategic technology partner.
- Recognized by IBM as its Most Influential Services Partner in APAC.
- Named Cloudera’s APAC Strategic Partner of the Year for advancing data- and AI-led transformation.
- Won multiple awards at the ISG Paragon Awards Asia 2026 for excellence in business transformation, innovation, public sector modernization, and operational excellence.
- Won five Brandon Hall HCM Excellence Awards for leadership development, employee engagement, onboarding, and social impact initiatives.
IFRS Financial Statements
Consolidated Statements of Comprehensive Income
For the three-month periods ended Sep 30, 2025, June 30, 2026, and Sep 30, 2026
(In millions of ₹, except per share data)
| Three-month period ended Sep 30, 2025* | Three-month period ended June 30, 2026* | Three-month period ended Sep 30, 2026 | |
| Revenue | 657,990 | 722,750 | 731,880 |
| Cost of revenue | 397,580 | 436,510 | 444,700 |
| Gross margin | 260,410 | 286,240 | 287,180 |
| SG & A expenses | 94,760 | 113,070 | 111,650 |
| Operating income | 165,650 | 173,170 | 175,530 |
| Other income (expense), net | 6,380 | 12,950 | 10,850 |
| Income before income taxes | 172,030 | 186,120 | 186,380 |
| Income taxes | 42,430 | 46,920 | 47,040 |
| Income after income taxes | 129,600 | 139,200 | 139,340 |
| Non-controlling interests | 560 | 710 | 500 |
| Net income | 129,040 | 138,490 | 138,840 |
| Earnings per share in ₹ | 35.67 | 38.28 | 38.37 |
*Excludes exceptional items
Consolidated Statements of Financial Position
As of March 31, 2026, and Sep 30, 2026
(In millions of ₹)
| As of March 31,
2026 |
As of Sep 30,
2026 |
|
| Assets | ||
| Property and equipment | 141,800 | 147,040 |
| Right-of-use Assets | 110,270 | 116,920 |
| Intangible assets and Goodwill | 114,370 | 114,730 |
| Accounts Receivable | 577,290 | 587,250 |
| Unbilled Revenues | 181,440 | 196,460 |
| Invested Funds | 500,200 | 573,530 |
| Other current assets | 128,980 | 106,490 |
| Other non-current assets | 90,520 | 86,800 |
| Total Assets | 1,844,870 | 1,929,220 |
| Liabilities and Shareholders’ Equity | ||
| Shareholders’ Funds | 1,093,760 | 1,211,260 |
| Current liabilities | 609,140 | 578,870 |
| Non-current liabilities | 129,590 | 129,010 |
| Non-controlling interests | 12,380 | 10,080 |
| Total Liabilities | 1,844,870 | 1,929,220 |
Ind AS Financial Statements
Consolidated Statement of Profit and Loss
For the Quarter ended Sep 30, 2025, June 30, 2026, and Sep 30, 2026
(In ₹ crore, except per share data)
| Quarter ended Sep 30, 2025* | Quarter ended June 30, 2026* | Quarter ended Sep 30, 2026 | |
| Revenue | 65,799 | 72,275 | 73,188 |
| Expenditure | |||
| a) Employee Costs | 38,606 | 42,137 | 41,890 |
| b) Cost of equipment and software licenses | 967 | 1,354 | 1,352 |
| c) Other Operating expenses | 8,248 | 10,228 | 11,131 |
| d) Depreciation | 1,413 | 1,239 | 1,262 |
| Total Expenditure | 49,234 | 54,958 | 55,635 |
| Profit Before Taxes & Other Income | 16,565 | 17,317 | 17,553 |
| Other income (expense), net | 638 | 1,295 | 1,085 |
| Profit Before Taxes | 17,203 | 18,612 | 18,638 |
| Provision For Taxes | 4,243 | 4,692 | 4,704 |
| Profit After Taxes & Before Non-controlling interests | 12,960 | 13,920 | 13,934 |
| Non-controlling interests | 56 | 71 | 50 |
| Net Profit | 12,904 | 13,849 | 13,884 |
| Earnings per share in ₹ | 35.67 | 38.28 | 38.37 |
*Excludes exceptional items
Consolidated Balance Sheet
As at March 31, 2026 and Sep 30, 2026
(In crores of ₹)
| As at March 31,
2026 |
As at Sep 30,
2026 |
|
| ASSETS | ||
| Property and equipment | 13,697 | 14,273 |
| Right-of-use assets | 11,027 | 11,692 |
| Intangible assets and Goodwill | 9,263 | 9,287 |
| Accounts Receivable | 57,729 | 58,725 |
| Unbilled Revenues | 18,144 | 19,646 |
| Invested Funds | 50,020 | 57,353 |
| Other current assets | 12,899 | 10,649 |
| Other non-current assets | 9,572 | 9,157 |
| Total Assets | 182,351 | 190,782 |
| EQUITY AND LIABILITIES | ||
| Shareholders’ Funds | 107,240 | 118,986 |
| Current liabilities | 60,914 | 57,887 |
| Non-current liabilities | 12,959 | 12,901 |
| Non-controlling interests | 1,238 | 1,008 |
| Total Liabilities | 182,351 | 190,782 |
About Tata Consultancy Services Ltd (TCS)
Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS) is a digital transformation and technology partner of choice for industry-leading organizations worldwide. Since its inception in 1968, TCS has upheld the highest standards of innovation, engineering excellence and customer service.
Rooted in the heritage of the Tata Group, TCS is focused on creating long term value for its clients, its investors, its employees, and the community at large. With a highly skilled workforce spread across 55 countries and 202 service delivery centers across the world, the company has been recognized as a top employer in six continents. With the ability to rapidly apply and scale new technologies, the company has built long term partnerships with its clients – helping them emerge as perpetually adaptive enterprises. Many of these relationships have endured into decades and navigated every technology cycle, from mainframes in the 1970s to Artificial Intelligence today.
TCS sponsors 14 of the world’s most prestigious marathons and endurance events, including the TCS New York City Marathon, TCS London Marathon and TCS Sydney Marathon with a focus on promoting health, sustainability, and community empowerment.
TCS generated consolidated revenues of over US$30 billion in the fiscal year ended March 31, 2026. For more information, visit www.tcs.com
