Tata Consultancy Services (TCS) delivered a strong quarterly performance, reporting a 15 per cent surge in consolidated net profit to ₹13,884 crore for the September quarter. This marks a significant climb from the ₹12,075 crore posted in the same period last year and follows the ₹13,349 crore recorded in the preceding June quarter. The growth was fueled by broad-based expansion across international markets and a sharp uptick in demand for artificial intelligence services, which now form a substantial chunk of the company's business model.
Revenue from operations climbed 11.22 per cent year-on-year to ₹73,188 crore, up from ₹65,799 crore a year ago. Sequentially, revenue rose 1.3 per cent from ₹72,275 crore in the June quarter. Operating margins held steady at 24 per cent, while net margins stood at 19 per cent. The real story, however, is in the AI numbers. TCS’s annualised AI revenue crossed the $3 billion threshold, reaching $3.1 billion or more than 10 per cent of overall revenue. Total contract value (TCV) sat at $9.6 billion, a slight dip from $10 billion a year earlier but a marginal increase from $9.5 billion in the previous quarter.
Sector-wise, banking, financial services and insurance (BFSI) remained a key driver, growing 2.5 per cent sequentially in constant currency terms. Manufacturing and technology services showed stronger momentum, each expanding 3.1 per cent sequentially. On the people front, TCS added 4,258 employees on a net basis, bringing its total workforce to 5,98,056 as of September 30. Attrition in IT services for the last twelve months stood at 13.3 per cent, a metric that continues to weigh on industry sentiment despite hiring efforts.
Strategic partnerships took center stage with the announcement of a five-year deal with Porsche AG. TCS’s subsidiary will acquire 100 per cent of MHP Management- und IT-Beratung GmbH, Porsche’s Germany-based consulting arm, subject to regulatory clearances. The company also secured a contract to transition Best Buy’s Global Capability Centre in India into an AI Capability Centre. CEO and MD K Krithivasan emphasized that these deals represent a "new category of transformation partnerships" aimed at scaling AI adoption globally.
Investors will focus on the dividend announcement next. The board approved a second interim dividend of ₹12 per equity share for FY27, with a record date of October 14 and payment scheduled for October 30. Ahead of the results, TCS shares closed 0.42 per cent lower at ₹2,075.25 on the BSE, underperforming the benchmark index which saw a 1.44 per cent decline.