Net Profit Beats Estimates at ₹13,884 Cr; 12 Dividend Declared as AI Revenue Hits $3.1B
Tata Consultancy Services has reported an impressive financial showing for the second quarter of FY27, posting a consolidated net profit of ₹13,884 crore and comfortably surpassing market expectations of ₹13,673 crore. India’s largest software exporter generated quarterly revenue of ₹73,188 crore, narrowly tracking against street projections of ₹73,225 crore. Alongside solid earnings, the Tata Group flagship declared an interim dividend of ₹12 per equity share for eligible investors, locking in October 30 as the definitive record date to determine corporate dividend entitlement.
Operational Margins and Dollar Revenue Metrics
On the profitability frontier, TCS maintained steady operating resilience with an earnings before interest and taxes (EBIT) margin of 24%, closely tracking street expectations of 24.2%. Reported quarterly EBIT touched ₹17,553 crore compared to anticipated figures of ₹17,738 crore, while overall dollar-denominated revenue advanced to $7,642 million against an estimate of $7,657 million. In constant currency terms, the technology major logged a 0.5% sequential revenue expansion, reflecting stable demand across core client accounts despite macroeconomic cross-currents in international markets.
Strong Sequential Acceleration Across Financial Parameters
Examined on a quarter-on-quarter basis, TCS delivered broad-based financial improvements across its core balance sheet items. Consolidated net profit climbed from ₹13,349 crore in the preceding June quarter to ₹13,884 crore, while top-line revenue rose from ₹72,275 crore to ₹73,188 crore. Operational EBIT expanded sequentially from ₹17,317 crore to ₹17,553 crore, holding the EBIT margin flat at 24%. Demonstrating international business momentum, dollar receipts grew from $7,624 million to $7,642 million, while operational talent metrics improved as trailing-twelve-month attrition moderated from 13.6% down to 13.3%.
Billion-Dollar AI Surge, Massive Deal Pipeline, and Talent Expansion
The second quarter underscored aggressive technological transformation, with TCS reporting that dedicated Artificial Intelligence revenue reached $3.1 billion, accounting for an impressive 10% of the firm's total top-line revenue. Commercial deal bookings maintained robust vigor, delivering a quarterly Total Contract Value (TCV) of $9.6 billion. Reinforcing operational confidence and delivery bandwidth, TCS expanded its workforce for the third straight quarter by adding 4,258 professionals on a net basis, taking its total talent base to 5.98 lakh associates.
