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% increase in net profit for Q2 2026, driven by strong demand for AI-led transformation services. The company's annual AI revenue has surpassed $3 billion, and the board has approved a dividend of ₹12 per share.
Why it matters
TCS's performance is a bellwether for the Indian IT sector, specifically highlighting the successful industrialization of AI services at scale.
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.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in