Slides
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TCS Financial Results Quarter II FY 2026-27 October 8, 2026
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Disclaimer 2 Certain statements in this release concerning our future prospects are forward-looking statements. Forward-looking statements by their nature involve a number of risks and uncertainties that could cause actual results to differ materially from market expectations. These risks and uncertainties include, but are not limited to, our ability to manage growth, intense competition among global IT services companies, various factors which may affect our profitability, such as wage increases or an appreciating Rupee, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, liability for damages on our service contracts, client concentration, our ability to manage our international operations, restrictions on cross-border movement of skilled personnel, reduced demand for technology in our key focus areas, our ability to capitalize on the emerging technology landscape, the success of the companies in which TCS has made strategic investments, our ability to successfully complete and integrate potential acquisitions, legal restrictions on raising capital or acquiring companies outside India, withdrawal of governmental fiscal incentives, geo-political instability, regulatory changes impacting the business model, supplier concentration and resilience, unauthorized use of our intellectual property, disruptions in telecommunication networks, cyber attacks, security or data breaches, social media adverse impact, pandemics, natural disasters, our ability to ensure business continuity in unforeseen circumstances, and general economic conditions affecting our industry. TCS may, from time to time, make additional written and oral forward-looking statements, including our reports to shareholders. These forward-looking statements represent only the Company’s current intentions, beliefs or expectations, and any forward-looking statement speaks only as of the date on which it was made. The Company assumes no obligation to revise or update any forward-looking statements.
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Quarterly Financial Performance
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Q2 FY27 Performance Highlights 4 ➢ Revenue: - INR Revenue of ₹ 731,880 Mn, up 1.3% QoQ | up 11.2% YoY - USD Revenue of $ 7,642 Mn, up 0.2% QoQ | up 2.4% YoY - Constant currency revenue up 0.5% QoQ | up 2.8% YoY ➢ Profit: - Operating Margin at 24.0% - Net Margin at 19.0% - Cash flow from operations at 102.2% of net profit ➢ Demand: - Clients $10M+ up by 2 ; $5M+ up by 6 & $1M+ up by 11 QoQ - Order book TCV at $9.6 Bn ➢ People: - Closing headcount: 598,056 - Voluntary LTM attrition at 13.3% in IT Services
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Growth Summary (INR) 5 657,990 670,870 706,980 722,750 731,880 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Revenue ` Million 129,040 134,380 137,180 138,490 138,840 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Net Income* ` Million 165,650 168,890 178,700 173,170 175,530 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Operating Income* ` Million 3.7% 2.0% 5.4% 2.2% 1.3% 0.8% 0.8% 1.2% 0.4% 0.5% Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Q-o-Q Growth Q-o-Q Growth CC 19.6% 20.0% 19.4% 19.2% 19.0% Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Net margin (%) 25.2% 25.2% 25.3% 24.0% 24.0% Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Operating margin (%) *Q2 FY26, Q3 FY26 and Q1 FY27 excludes exceptional items
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19.6% 20.0% 19.4% 19.2% 19.0% Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Net margin (%) Growth Summary (USD) 6 7,466 7,509 7,621 7,624 7,642 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Revenue $ Million 0.6% 0.6% 1.5% 0.0% 0.2% 0.8% 0.8% 1.2% 0.4% 0.5% Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Q-o-Q Growth Q-o-Q Growth CC 1,879 1,889 1,927 1,826 1,833 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Operating Income* $ Million 25.2% 25.2% 25.3% 24.0% 24.0% Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Operating margin (%) 1,464 1,503 1,479 1,460 1,450 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Net Income* $ Million *Q2 FY26, Q3 FY26 and Q1 FY27 excludes exceptional items
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Operational Parameters
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Growth by Market 8 Geography (%) Q2 FY26 Q1 FY27 Q2 FY27 Q-o-Q CC Growth Y-o-Y CC Growth Q-o-Q INR Growth Y-o-Y INR Growth Americas North America 48.8 48.3 48.3 0.4 1.5 1.3 10.2 Latin America 1.9 2.0 2.1 4.3 1.7 6.2 19.5 Europe UK 17.5 17.2 17.8 3.5 4.5 4.6 13.2 Continental Europe 15.3 15.4 15.2 0.4 3.3 0.4 10.6 Asia Pacific 8.3 8.4 8.6 2.0 4.1 3.1 15.6 India 5.8 6.2 5.5 - 10.3 6.0 - 10.3 6.2 MEA 2.4 2.5 2.5 0.4 2.0 1.6 13.0 Total 100.0 100.0 100.0 0.5 2.8 1.3 11.2
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Growth by Domain 9 Vertical (%) Q2 FY26 Q1 FY27 Q2 FY27 Q-o-Q CC Growth Y-o-Y CC Growth Q-o-Q INR Growth Y-o-Y INR Growth BFSI 32.2 32.1 32.8 2.5 3.9 3.5 13.2 Consumer Business 15.3 15.0 14.9 - 0.7 - 1.0 0.1 7.8 Life Sciences & Healthcare 10.5 10.3 10.3 0.3 0.5 1.2 9.1 Manufacturing 8.8 8.7 9.0 3.1 4.2 4.0 13.0 Technology & Services 8.5 8.5 8.6 3.1 4.8 3.3 12.7 Communication & Media 5.9 5.8 5.8 0.1 0.5 1.0 9.7 Energy, Resources and Utilities 5.9 6.3 6.2 - 0.5 5.7 0.1 16.0 Regional Markets & Others 12.9 13.3 12.4 - 5.8 3.6 - 5.2 8.5 Total 100.0 100.0 100.0 0.5 2.8 1.3 11.2
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*Last Twelve Months' services revenues Client Parameters 10 US$ 1m+ Clients 1360 1401 1412 US$ 5m+ Clients 707 746 752 US$ 10m+ Clients 498 504 506 US$ 20m+ Clients 302 307 307 US$ 50m+ Clients 136 139 137 US$ 100m+ Clients 60 66 65 Clients Contribution Q2 FY26 Q1 FY27 Q2 FY27
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Human Resources
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Total Employee Base 12 Q1-26 Q2-26 Q3-26 Q4-26 Q1-27 Q2-27 613,069 593,314 582,163 584,519 593,798 598,056 Voluntary Attrition*: • 13.3% (LTM), IT Services Diversity: • 35.0 % Women employees • 149 Nationalities *Excluding Subsidiaries Talent Development: • 31.8 Mn Learning Hrs (YTD) • 2.7 Mn competencies acquired (YTD) • 367K+ associates with higher proficiency in AI / ML (Cumulative)
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Annexure
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IFRS Income Statement 14 Revenue 657,990 722,750 731,880 100.0 100.0 100.0 Cost of revenue 397,580 436,510 444,700 60.4 60.4 60.7 Gross margin 260,410 286,240 287,180 39.6 39.6 39.3 SG & A expenses 94,760 113,070 111,650 14.4 15.6 15.3 Operating income 165,650 173,170 175,530 25.2 24.0 24.0 Other income (expense), net 6,380 12,950 10,850 0.9 1.8 1.5 Income before income taxes 172,030 186,120 186,380 26.1 25.8 25.5 Income taxes 42,430 46,920 47,040 6.4 6.5 6.4 Income after income taxes 129,600 139,200 139,340 19.7 19.3 19.1 Non-controlling interests 560 710 500 0.1 0.1 0.1 Net income 129,040 138,490 138,840 19.6 19.2 19.0 Earnings per share in ₹ 35.67 38.28 38.37 Consolidated IFRS ₹ Million % of Revenue Q2 FY27 Q2 FY27Q1 FY27Q2 FY26 Q2 FY26 Q1 FY27 *Q2 FY26 and Q1 FY27 excludes exceptional items
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Expense by Nature 15 *Q2 FY26 and Q1 FY27 excludes exceptional items Q2 FY26* Q1 FY27* Q2 FY27 Q2 FY26* Q1 FY27* Q2 FY27 Employee Cost 386,060 421,370 418,900 58.7% 58.3% 57.2% Fees to External consultants 32,480 42,930 49,540 4.9% 5.9% 6.8% Cost of equipment and software licenses 9,670 13,540 13,520 1.5% 1.9% 1.8% Project Expenses & Software for Service Delivery 21,260 24,090 26,220 3.2% 3.3% 3.6% Depreciation & Amortisation 12,060 12,060 12,270 1.8% 1.7% 1.7% Facility Expenses 8,860 9,750 9,870 1.3% 1.3% 1.3% Communication 2,700 2,960 2,800 0.4% 0.4% 0.4% Travel Expenses 7,870 9,100 9,460 1.2% 1.3% 1.3% Branding and marketing 3,090 3,930 3,550 0.5% 0.5% 0.5% Recruitment & Training 1,590 2,450 2,770 0.2% 0.3% 0.4% Legal & Professional Expenses 1,850 2,100 2,220 0.3% 0.3% 0.3% Provision for Doubtful Debts 380 840 770 0.1% 0.1% 0.1% Other Expenses 4,470 4,460 4,460 0.7% 0.6% 0.6% Total Expenses 492,340 549,580 556,350 74.8% 76.0% 76.0% Operating Margin 165,650 173,170 175,530 25.2% 24.0% 24.0% Expense by nature ₹ Million % of Revenue
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IFRS in ₹ Mn Q2 FY26 Q1 FY27 Q2 FY27 Net Cash from Operations 132,930 124,120 141,900 Capital Expenditure 12,010 7,500 14,590 Free Cash Flow 120,920 116,620 127,310 Dividends Paid 40,210 115,230 44,050 Operating Cash Flow to Sales (% ) 20.2 17.2 19.4 Operating Cash Flow to Net Profit (% ) 110.1 93.0 102.2 Total Cash and Investments 559,500 502,320 573,530 Cash Flow Summary 16
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IFRS Statement of Financial Position 17 Detailed financials are uploaded. 31-Mar-26 30-Sep-26 Assets Property and equipment 141,800 147,040 Right-of-use Assets 110,270 116,920 Intangible assets and Goodwill 114,370 114,730 Accounts Receivable 577,290 587,250 Unbilled Revenues 181,440 196,460 Invested Funds 500,200 573,530 Other current assets 128,980 106,490 Other non current assets 90,520 86,800 Total assets 1,844,870 1,929,220 Liabilities and Shareholders' Equity Shareholders' Funds 1,093,760 1,211,260 Current liabilities 609,140 578,870 Non-current liabilities 129,590 129,010 Non-controlling interests 12,380 10,080 Total Liabilities 1,844,870 1,929,220 Consolidated IFRS ₹ Million
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Revenue 7,466 7,624 7,642 100.0 100.0 100.0 Cost of revenue 4,512 4,605 4,643 60.4 60.4 60.7 Gross margin 2,954 3,019 2,999 39.6 39.6 39.3 SG & A expenses 1,075 1,193 1,166 14.4 15.6 15.3 Operating income 1,879 1,826 1,833 25.2 24.0 24.0 Other income (expense), net 73 137 112 0.9 1.8 1.5 Income before income taxes 1,952 1,963 1,945 26.1 25.8 25.5 Income taxes 482 495 490 6.4 6.5 6.4 Income after income taxes 1,470 1,468 1,455 19.7 19.3 19.1 Non-controlling interests 6 8 5 0.1 0.1 0.1 Net income 1,464 1,460 1,450 19.6 19.2 19.0 Consolidated IFRS $ Million Q2 FY27Q2 FY26 % of Revenue Q2 FY27Q2 FY26Q1 FY27 Q1 FY27 IFRS Income Statement – In USD 18 *Q2 FY26 and Q1 FY27 excludes exceptional items
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Expense by Nature – In USD 19 *Q2 FY26 and Q1 FY27 excludes exceptional items Q2 FY26* Q1 FY27* Q2 FY27 Q2 FY26* Q1 FY27* Q2 FY27 Employee Cost 4,381 4,445 4,374 58.7% 58.3% 57.2% Fees to External consultants 368 453 518 4.9% 5.9% 6.8% Cost of equipment and software licenses 110 143 141 1.5% 1.9% 1.8% Project Expenses & Software for Service Delivery 242 254 274 3.2% 3.3% 3.6% Depreciation & Amortisation 135 128 128 1.8% 1.7% 1.7% Facility Expenses 101 103 103 1.4% 1.4% 1.3% Communication 31 31 29 0.4% 0.4% 0.4% Travel Expenses 89 96 99 1.2% 1.3% 1.3% Branding and marketing 35 41 37 0.5% 0.5% 0.5% Recruitment & Training 18 26 29 0.2% 0.3% 0.4% Legal & Professional Expenses 21 22 23 0.3% 0.3% 0.3% Provision for Doubtful Debts 4 9 8 0.1% 0.1% 0.1% Other Expenses 52 47 46 0.7% 0.6% 0.6% Total Expenses 5,587 5,798 5,809 74.8% 76.0% 76.0% Expense by nature $ Million % of Revenue
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IFRS Statement of Financial Position in USD 20 Detailed financials are uploaded. 31-Mar-26 30-Sep-26 Assets Property and equipment 1,500 1,533 Right-of-use Assets 1,166 1,219 Intangible assets and Goodwill 1,211 1,197 Accounts Receivable 6,102 6,124 Unbilled Revenues 1,918 2,048 Invested Funds 5,287 5,980 Other current assets 1,360 1,108 Other non current assets 956 908 Total assets 19,500 20,117 Liabilities and Shareholders' Equity Shareholders' Funds 11,559 12,628 Current liabilities 6,439 6,036 Non-current liabilities 1,369 1,346 Non-controlling interests 133 107 Total Liabilities 19,500 20,117 $ Million Consolidated IFRS
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Ind AS Income Statement - Consolidated 21 Revenue 65,799 72,275 73,188 100.0 100.0 100.0 Expenditure a) Employee Costs 38,606 42,137 41,890 58.7 58.3 57.2 b) Cost of equipment and software licenses 967 1,354 1,352 1.5 1.9 1.8 c) Other Operating expenses 8,248 10,228 11,131 12.5 14.1 15.3 d) Depreciation 1,413 1,239 1,262 2.1 1.7 1.7 Total Expenditure 49,234 54,958 55,635 74.8 76.0 76.0 Profit Before Taxes & Other Income 16,565 17,317 17,553 25.2 24.0 24.0 Other income (expense), net 638 1,295 1,085 0.9 1.8 1.5 Profit Before Taxes 17,203 18,612 18,638 26.1 25.8 25.5 Provision For Taxes 4,243 4,692 4,704 6.4 6.5 6.4 Profit After Taxes & Before Non-controlling interests 12,960 13,920 13,934 19.7 19.3 19.1 Non-controlling interests 56 71 50 0.1 0.1 0.1 Net Profit 12,904 13,849 13,884 19.6 19.2 19.0 Earnings per share in ₹ 35.67 38.28 38.37 Consolidated Ind AS ₹ Crore % of Revenue Q2 FY26 Q1 FY27 Q2 FY27Q2 FY27 Q2 FY26 Q1 FY27 *Q2 FY26 and Q1 FY27 excludes exceptional items
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Ind AS Balance Sheet - Consolidated 22 Detailed financials are uploaded. 31-Mar-26 30-Sep-26 Assets Property and equipment 13,697 14,273 Right-of-use Assets 11,027 11,692 Intangible assets and Goodwill 9,263 9,287 Accounts Receivable 57,729 58,725 Unbilled Revenues 18,144 19,646 Invested Funds 50,020 57,353 Other current assets 12,899 10,649 Other non current assets 9,572 9,157 Total Assets 182,351 190,782 Liabilities and Shareholders' Equity Shareholders' Funds 107,240 118,986 Current liabilities 60,914 57,887 Non-current liabilities 12,959 12,901 Non-controlling interests 1,238 1,008 Total Liabilities 182,351 190,782 Consolidated Ind AS ₹ Crore
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Q2 FY26 Q1 FY27 Q2 FY27 Q2 FY26 Q1 FY27 Q2 FY27 USD 88.13 94.79 95.77 49.79% 48.65% 48.70% GBP 118.11 126.80 128.24 15.16% 15.10% 15.28% EUR 102.70 109.76 109.86 11.73% 11.88% 12.05% Others 23.32% 24.37% 23.97% Total 100.00% 100.00% 100.00% Currency Average rates % of Revenue Currency mix and average realized rates in INR 23
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