TCTata Consultancy Services532540Quarterly results

Q2FY27 earnings call transcript: revenue ₹73,188 crore, margin 24%, TCV US$9.6 billion

Q2FY27 earnings call takeaways.

By ScoutQuest · Wed 14 Oct 2026, 3:56 PM IST · 3 min read

Revenue

₹73,188 crore, up 1.3% QoQ and 11.2% YoY

Operating margin

steady at 24%

Order book TCV

US$9.6 billion, excluding the Porsche and Best Buy deals

Quarterly performance

The company reported revenue of ₹73,188 crore for the second quarter of FY 2027, ended September 30, 2026. That is a growth of 1.3% sequentially and 11.2% year-on-year. In dollar terms, revenue was $7,642 million, a growth of 20 basis points sequentially and 2.4% year-on-year. In constant currency, growth was 50 basis points quarter-on-quarter and 2.8% year-on-year.

Margin

Operating margins remained stable sequentially at 24%. Management said it continued to prioritise investments for growth, including strategic partnerships, M&A-related initiatives and hiring of niche talent. It added that it invested in a higher bench and increased hiring of subcontractors to meet near-term skills and delivery requirements, and that these headwinds were partly mitigated by currency gains and operating leverage.

Order book and AI

• TCV for the quarter was US$9.6 billion, which excludes the Porsche and Best Buy deals.
• Annualised AI revenue reached $3.1 billion and crossed 10% of overall revenue.

Markets and verticals

• International revenue grew 1.2% sequentially in constant currency.
• All international markets grew sequentially, led by the United Kingdom at 3.5%, followed by North America and Continental Europe at 0.4% each.
• BFSI grew 2.5% sequentially in constant currency, while Manufacturing and Technology and Services each grew 3.1%.
• Consumer Business and Energy, Resources and Utilities showed an improvement compared to the previous quarter.
• India revenue grew 6%, and Regional Markets grew 3.6% year-on-year.

Strategic moves

• The partnership with Porsche and the proposed acquisition of MHP, which is subject to regulatory approvals, strengthen its position in AI powered mobility and engineering.
• The Best Buy GCC engagement, which management said highlights its ability to help clients build and transform AI-native global capability centres.
• Launches including TCS ADD AgentHub for drug discovery, domain-specific agentic control planes, and new Physical AI capabilities, including an Autonomous Engineering Lab powered by NVIDIA in Bengaluru and an AI-first lights-out factory lab in Pune.

What management said about the road ahead

• The demand environment has not materially changed since last quarter, and discretionary programs without near-term value remain under scrutiny.
• Management said its primary opportunity and focus is on translating the advances in AI into measurable enterprise advantage for clients.
• On margins, management said its disciplined approach to margin management remains unchanged and that, as growth improves, it expects to benefit from enhanced scale efficiency while continuing to optimise cost structures, align capacity with demand and maintain disciplined execution.
• Management noted on the call that the company does not provide specific revenue or earnings guidance.

Priority areas listed by management

• Strengthening the portfolio through targeted capability acquisitions.
• Adding a stronger partnership ecosystem with Frontier AI companies, hyperscalers, the semiconductor ecosystem, Tier-1 industrial suppliers and enterprise software providers.
• Accelerating investments in high-growth service areas - sales, solutioning, service transformation, new offerings and business models across its five big bets, with a specific focus on AI and data.

How to read this

The transcript sets out the quarterly numbers together with management's own reading of demand, investment priorities and margin levers. The revenue, margin, order book and AI revenue figures above are the quantitative anchors, while the commentary on discretionary spending and margin levers is the qualitative context.

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