Tata Consultancy Services (TCS) reported a 15% year-on-year increase in consolidated net profit for the July-September quarter of FY27, reaching ₹13,884 crore, up from ₹12,075 crore last year. The company’s shares surged nearly 5% on October 9, closing at ₹2,183.90 on the BSE. TCS also declared a second interim dividend of ₹12 per share for the financial year 2026-27, alongside an 11% rise in revenue from operations to ₹73,188 crore.
TCS managing director and CEO K Krithivasan highlighted broad-based growth across international markets and industry verticals during the quarter. The company’s AI-related revenue jumped nearly 20% quarter-on-quarter to $3.1 billion from $2.6 billion, reflecting strong traction in AI business. TCS is collaborating with clients like Porsche and Best Buy to develop scalable AI platforms. Analysts noted TCS is strengthening its AI capabilities through acquisitions, partnerships, and investments in talent and new growth engines.
The growth in AI revenue underscores TCS’s positioning within India’s $315-billion software services sector as enterprises globally increase spending on AI-led transformations. Morningstar analysts praised TCS’s leadership in AI implementation, though they lowered the fair value estimate to ₹2,360 citing macroeconomic volatility. The company’s focus on AI aims to capture emerging demand and offset potential impacts on its core business, aligning with broader industry trends toward digital transformation and managed services modernization.
TCS reported an operating margin of 24% and a net margin of 19% during the quarter. On a constant currency basis, revenue grew 0.5% sequentially. The company’s next earnings update will provide further clarity on sustaining AI-driven growth amid global market challenges, according to the latest disclosures from livemint.com and thehindubusinessline.com.