AI Boosts Growth for India’s IT Giant TCS

India’s IT services giant Tata Consultancy Services (TCS) has announced its results for the second quarter of the 2026–27 financial year, marking the beginning of the quarterly earnings season for major IT companies. For the July–September quarter, TCS reported a 15% year on year increase in consolidated net profit to ₹13,884 crore, compared with ₹12,075 crore in the same period last year. Profit also rose by nearly 4% from ₹13,349 crore recorded in the April–June quarter.

TCS’s revenue for the quarter increased 11.2% year-on-year to ₹73,188 crore, compared with ₹65,799 crore in the corresponding quarter last year. Revenue stood at ₹72,275 crore in the previous quarter. The company’s board declared a second interim dividend of ₹12 per share, setting October 14 as the record date and October 30 as the payment date. Annualised revenue from its artificial intelligence (AI) business reached $3.1 billion, while the total value of new deals secured during the quarter stood at $9.6 billion.

During the quarter, TCS added 4,258 employees, taking its total workforce to 598,056. The employee attrition rate over the preceding 12 months stood at 13.3%, while the operating margin was 24%. The Energy, Resources and Utilities segment recorded 5.7% year on year growth, while the Consumer Business segment declined by 1%. Revenue from North America grew by 1.5%, while India recorded 6% growth. TCS also announced strategic partnerships with Porsche and Best Buy to support business transformation and expand AI capabilities.