EconomyCompanies
TCS profit rises 15% to ₹13,884 crore; annual AI revenue passes $3 billion
India's largest IT company grew revenue 0.5% in constant currency in July-September. HCLTech reports today, and Wipro and Tech Mahindra on Thursday.
Key points
- TCS's net profit for July-September rose about 15% to ₹13,884 crore from ₹12,075 crore a year earlier.
- Revenue was ₹73,188 crore, up 1.3% on the June quarter in rupees but only 0.5% in constant currency.
- Annualised AI revenue reached $3.1 billion, more than 10% of the company's revenue.
- Headcount rose by 4,258 to 5,98,056, and the board declared a second interim dividend of ₹12 a share.
Tata Consultancy Services earned a net profit of ₹13,884 crore in July-September 2026, about 15% more than the ₹12,075 crore it made a year earlier. Revenue rose 11.2% to ₹73,188 crore. The company announced the results on 8 October.
Annualised revenue from artificial intelligence work reached $3.1 billion, more than 10% of TCS’s total revenue. Chief executive K Krithivasan described two of the quarter’s deals, with Porsche and Best Buy, as a new category of transformation partnerships.
Profit against the June quarter
Against the June quarter, profit rose about 4% from ₹13,349 crore. That earlier figure included a one-time loss on a legal claim settlement. Leaving that out, profit was almost flat.
Growth also looks smaller once currency is stripped out. Revenue rose 1.3% from the June quarter in rupees, but only 0.5% in constant currency. A weaker rupee lifts the rupee value of dollar and euro earnings, and the rupee has been close to 97 to the dollar this month.
The operating margin was 24%, level with the previous quarter. Net cash from operations was ₹14,190 crore, about 102% of net income.
Where growth came from
Manufacturing and technology and services each grew 3.1% from the June quarter in constant currency, and banking and financial services 2.5%. Among markets, the UK grew 3.5% and North America 0.4%.
TCS signed deals with a total contract value of $9.6 billion. They include a five-year partnership with Porsche, under which TCS will buy Porsche’s consulting arm MHP, subject to regulatory approvals. TCS will also take over Best Buy’s capability centre in India.
Together with our clients, we are building repeatable value platforms that will industrialise AI at scale.
Krithivasan also said the company was “pleased with the broad-based growth in all our international markets and most industry segments”. Chief Operating Officer Aarthi Subramanian pointed to strong AI momentum and demand for AI-native solutions.
TCS in July-September 2026
- ₹13,884 cr net profitUp about 15% from a year earlier.
- $3.1 bn annualised AI revenueMore than 10% of total revenue.
- $9.6 bn deals signedTotal contract value for the quarter.
- 5,98,056 employeesA net addition of 4,258 in the quarter.
Jobs and dividend
TCS added 4,258 people in the quarter, taking its workforce to 5,98,056. It was the third straight quarter of net hiring. Attrition in IT services over the past 12 months was 13.3%.
The board declared a second interim dividend of ₹12 a share. The record date is 14 October and payment is due on 30 October.
TCS shares rose about 5% on 9 October, the day after the results.
The US green-card freeze
The results came the same day the US Labor Department said it would stop processing PERM labour certifications, the step most employment-based green cards need, for eight companies including TCS, Infosys, Wipro and HCLTech. TCS said on 9 October that its PERM applications had been in single digits over the last two years and it did not expect the suspension to affect its workforce plans.
The week ahead for IT
HCLTech is due to report its July-September results today, 12 October, and its board will consider a third interim dividend. Wipro and Tech Mahindra are both due to report on 15 October. Tech Mahindra’s board will also consider an interim dividend and a bonus issue. Infosys reports on 23 October.
IT results and dates to watch
- 12 OctHCLTech July-September results
- 14 OctRecord date for TCS's ₹12 dividend
- 15 OctWipro and Tech Mahindra results
- 23 OctInfosys results
- 30 OctTCS dividend payment