TCS Q2 net up 15% to ₹13,884 cr, AI revenue crosses $3 bn; board approves ₹12 dividend

Tata Consultancy Services (TCS) reported a 15% year-on-year (YoY) rise in consolidated net profit to ₹13,884 crore for the quarter ended September 30, 2026.

Revenue for the quarter rose 11.2% YoY to ₹73,188 crore, while growing 1.3% sequentially. Net margin stood at 19%, with operating margin at 24%.

TCS said its annualised AI revenue crossed $3.1 billion, accounting for more than 10% of revenue, underscoring accelerating demand for AI-led transformation. Total contract value (TCV) stood at $9.6 billion during the quarter.

Cash generation remained strong, with net cash from operations at ₹14,190 crore, equivalent to 102.2% of net income.

The company’s workforce stood at 598,056 employees at the end of the quarter, up from 593,314 a year earlier. IT services attrition remained stable at 13.3%.

The board recommended a ₹12-per-share dividend, compared with ₹11 a year ago. The record date is October 14, with payment scheduled for October 30.

“We are pleased with the broad-based growth in all our international markets and most industry segments,” said K Krithivasan, CEO and Managing Director, TCS.

Highlighting that Porsche and Best Buy represent a new category of transformation partnerships, he said together with the clients, “it is building repeatable value platforms that will industrialise AI at scale,”

Aarthi Subramanian, Executive Director and President and COO, said “AI momentum remained strong”, with annualised AI revenue exceeding $3 billion. Demand for AI-native solutions, AI-led enterprise transformation and autonomous global business services (GBS) continued to accelerate.

Cybersecurity also remained a key customer priority, she said, as companies increasingly focused on resilience and recovery.

TCS CFO Samir Seksaria said the company continued to strengthen its capabilities through acquisitions, partnerships and investments in niche talent, while maintaining strong cash conversion and profitability.

The company also stepped up employee learning, with learning hours rising 17% sequentially to 17.1 million, as it focused on upskilling employees and building capabilities in critical technologies.