TCS Q2 profit rises 4% to ₹13,884 crore
What's the story
Tata Consultancy Services (TCS), India's leading IT services firm, has reported a 4% sequential rise in its consolidated net profit for the second quarter of FY27. The company's net profit stood at ₹13,884 crore for the quarter ending September 30, up from ₹13,349 crore in the previous quarter. The latest figure beat CNBC-TV18's poll estimate of ₹13,673 crore.
Financial performance
Revenue from operations at ₹73,188 crore
TCS's consolidated revenue from operations also witnessed a marginal increase of 1.3% quarter-on-quarter to ₹73,188 crore.
This was up from ₹72,275 crore in the previous quarter and largely in line with CNBC-TV18's poll estimate of ₹73,225 crore.
The company's annualized AI revenue crossed $3 billion during this period, accounting for over 10% of its total revenue.
AI growth
AI momentum remains strong
TCS's Executive Director, President, and COO Aarthi Subramanian said the company's AI momentum remained strong with annualized revenue exceeding $3 billion.
She noted that demand for AI-native solutions and transformation services continued to grow.
The company also reported a total contract value (TCV) of $9.6 billion during this period, further underscoring its strong performance in the sector.
Business expansion
Broad-based growth across all international markets
TCS CEO and Managing Director K Krithivasan said the company witnessed broad-based growth across all international markets and most industry segments.
He highlighted the company's strategic partnerships with Porsche and Best Buy as new-age transformation partnerships to scale AI.
In constant currency terms, TCS reported a sequential revenue growth of 0.5% while international revenue grew by 1.2%.
Operational details
BFSI segment sees 2.5% sequential growth
The banking, financial services, and insurance (BFSI) segment saw a 2.5% sequential growth in constant currency terms.
Manufacturing and technology & services grew by 3.1% each while consumer business revenue fell by 0.7%.
TCS's total workforce stood at 598,056 employees at the end of September with last-12-month attrition in IT services stable at 13.3%.