TCS reported Q2 results with constant currency revenue growth of 0.5% QoQ, flat margins at 24%, and AI revenue crossing $3.1 billion annualized

Thu 8 Oct 2026

Rupee revenue this quarter

73,188 crore rupees

Expected rupee revenue

73,225 crore rupees

Profit this quarter

13,884 crore rupees

Expected profit

13,673 crore rupees

Constant currency revenue growth QoQ

0.5 percent

Heard on business television between 15:43:11 - 15:46:11 IST.

• Rupee revenue came in at Rs 73,188 crore, slightly below the Rs 73,225 crore expectation; profit at Rs 13,884 crore, slightly ahead of the Rs 13,673 crore estimate.
• Constant currency revenue growth was 0.5% QoQ, in line with expectations; international business revenue grew 1.2%, while India revenue fell about 10% due to consumer segment weakness from geopolitical tensions and inflation.
• BFSI growth accelerated to 2.5% QoQ from 1.6% prior quarter; manufacturing and technology verticals grew 3.1% each.
• Annualized AI revenue rose to $3.1 billion from $2.6 billion, crossing 10% of overall revenue, with sequential AI revenue growth accelerating to 20% QoQ from 13.6%.
• Margins were flat QoQ at 24% versus a CNBC-TV18 poll expectation of 20 bps expansion; analysts cited aggressive AI investment and the upcoming MHP/Porsche IT business integration as margin pressures, with the company targeting 25% margin by Q4 FY27.
• Headcount rose by 4,258, the third straight quarterly increase, with attrition easing slightly to 13.3% from 13.6%.

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