Tata Consultancy Services (TCS) reported standalone net sales of ₹60,441 crore for the quarter ended September 30, 2026, representing a 10.84% increase from ₹54,531 crore in the corresponding quarter last year. Standalone net profit increased 19.24% year on year to ₹14,104 crore, compared with ₹11,828 crore in September 2025. EBITDA also increased 11.52% to ₹19,444 crore, reflecting continued growth in the company’s core IT services business.
The September-quarter results provide another indication of TCS’s ability to maintain double-digit revenue growth despite an evolving global technology spending environment. However, the standalone figures need to be distinguished from the company’s consolidated performance, which includes its subsidiaries and international operations. On a consolidated basis, TCS reported revenue of ₹73,188 crore and net profit of ₹13,934 crore for the same quarter. The company also declared an interim dividend of ₹12 per share and announced a proposed acquisition of German consulting firm MHP.
TCS Q2 FY27 Standalone Results: Key Financial Highlights
TCS recorded growth across its major standalone financial indicators during the July-September 2026 quarter.
| Financial metric | September 2026 | September 2025 | Growth |
|---|---|---|---|
| Net sales | ₹60,441 crore | ₹54,531 crore | 10.84% |
| Net profit | ₹14,104 crore | ₹11,828 crore | 19.24% |
| EBITDA | ₹19,444 crore | ₹17,436 crore | 11.52% |
| Earnings per share | ₹38.98 | ₹32.70 | 19.21% |
The company’s net sales increased by approximately ₹5,910 crore compared with the year-ago quarter. Net profit grew faster than revenue, while EBITDA increased at a slightly higher rate than sales.
The results indicate that TCS continued to expand its business while maintaining growth in operating earnings.
It is important to note that these figures are standalone financial results. They represent TCS’s individual financial performance rather than the combined performance of its subsidiaries.
Consolidated Revenue Reaches ₹73,188 Crore
TCS also reported strong consolidated financial results for the September quarter.
Consolidated revenue from operations increased to ₹73,188 crore from ₹65,799 crore in the corresponding quarter last year, representing growth of approximately 11.23%.
Consolidated net profit increased 14.86% to ₹13,934 crore from ₹12,131 crore.
| Financial metric | Q2 FY27 consolidated | Q2 FY26 consolidated | Growth |
|---|---|---|---|
| Revenue from operations | ₹73,188 crore | ₹65,799 crore | 11.23% |
| Net profit | ₹13,934 crore | ₹12,131 crore | 14.86% |
| Operating profit | ₹18,815 crore | ₹17,978 crore | 4.66% |
The consolidated figures provide a broader picture of TCS’s international operations and subsidiaries.
The difference between standalone and consolidated revenue is significant because TCS operates across multiple geographies and business entities. Investors generally examine consolidated results to understand the performance of the overall group, while standalone results provide insight into the parent company’s individual financial position.
EBITDA Growth Reflects Expansion in Operating Earnings
TCS reported standalone EBITDA of ₹19,444 crore, increasing 11.52% from ₹17,436 crore in September 2025.
EBITDA, or earnings before interest, taxes, depreciation and amortisation, is commonly used to evaluate a company’s operating performance before financing costs, taxes and certain non-cash expenses.
The increase indicates that TCS generated higher earnings before these expenses compared with the previous year.
Standalone profit before tax and exceptional items reached ₹18,276 crore, compared with ₹16,094 crore in the corresponding quarter last year.
The previous year’s September quarter included an exceptional expense of ₹850 crore. The absence of a comparable exceptional expense in the latest quarter is an important consideration when interpreting the 19.24% growth in reported net profit.
On a consolidated basis, operating profit increased at a slower pace than revenue. This makes operating margins an important metric to monitor in subsequent quarters.
TCS Declares ₹12 Interim Dividend
Alongside its September-quarter financial results, TCS declared an interim dividend of ₹12 per equity share.
The dividend provides a direct distribution of earnings to shareholders and reflects the company’s continued capital-return policy.
TCS has historically maintained a significant dividend payout, making shareholder distributions an important part of its financial profile.
For investors, the dividend announcement is relevant alongside revenue and profit growth because it provides information about how the company balances business investments with shareholder returns.
The ₹12 dividend was declared by the board at its October 8, 2026 meeting.
TCS Announces €320 Million Acquisition of German Consulting Firm MHP
Another important development during the quarter was TCS’s agreement to acquire MHP Management- und IT-Beratung GmbH, a German consulting firm specialising in automotive and industrial technology.
TCS Netherlands B.V., a wholly owned subsidiary of TCS, signed a definitive agreement to acquire 100% of MHP and its subsidiaries.
The proposed transaction carries an enterprise value of €320 million, equivalent to approximately ₹3,484 crore, subject to regulatory approvals and other conditions.
MHP provides consulting and technology services across several areas:
- Automotive consulting: Supporting automotive manufacturers and suppliers with business and technology transformation.
- Digital transformation: Helping companies modernise business processes and technology infrastructure.
- Artificial intelligence: Supporting the adoption of AI across industrial and business operations.
- Software-defined mobility: Working on software-driven automotive systems and mobility solutions.
- SAP services: Providing enterprise software implementation and consulting.
- Manufacturing digitalisation: Helping industrial companies improve production systems through technology.
The acquisition is strategically relevant because automotive companies are increasingly investing in software, connected vehicles, artificial intelligence and digital manufacturing.
MHP’s industry expertise could strengthen TCS’s ability to serve automotive and industrial clients, particularly in European markets.
The acquisition also fits into TCS’s broader strategy of expanding its consulting capabilities and strengthening its presence in specialised technology markets.
Why TCS’s Financial Performance Matters for India’s IT Industry
TCS is India’s largest IT services company by revenue and an important indicator of technology spending trends across global markets.
Its financial performance is closely monitored because the company works with large enterprises across banking, financial services, retail, manufacturing, healthcare, communications and technology.
Demand for cloud migration, artificial intelligence, cybersecurity, software modernisation and digital transformation continues to shape the industry’s growth opportunities.
However, enterprise technology spending is also influenced by global economic conditions, client budgets, geopolitical uncertainty and decisions about discretionary projects.
TCS’s double-digit revenue growth is therefore an important indicator of business expansion, although investors will also examine deal wins, employee utilisation, hiring, margins and currency movements to understand the sustainability of that growth.
The Bigger Picture: AI and Consulting Are Reshaping TCS’s Growth Strategy
The acquisition of MHP highlights how traditional IT services companies are expanding beyond conventional software outsourcing.
Businesses increasingly require technology partners that understand both software and specific industries. In automotive manufacturing, for example, companies are investing in connected vehicles, software-defined systems, industrial automation and AI-powered production.
By strengthening its consulting and industry-specific capabilities, TCS can pursue more specialised projects and potentially deepen relationships with large global customers.
The wider opportunity is not limited to automotive companies. Similar technology requirements are emerging across manufacturing, banking, healthcare and retail.
For TCS, the challenge will be converting these opportunities into consistent revenue growth while maintaining profitability and competing with global consulting and technology providers.
Looking Ahead
TCS enters the second half of FY27 with double-digit standalone revenue growth, higher net profit and an expanding consulting strategy. Its proposed acquisition of MHP could strengthen its European automotive and manufacturing capabilities, while the interim dividend provides another return to shareholders. Investors will continue to monitor consolidated revenue growth, operating margins, large deal activity and demand for AI-related services.
The longer-term performance of TCS will depend on how effectively it adapts to changing enterprise technology budgets and converts demand for AI, cloud and digital transformation into profitable business. The September results show continued financial growth, but the company’s ability to sustain operating performance and successfully integrate acquisitions will be important in determining its next phase of expansion.
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