TCS Q2 FY27 Results (NSE: TCS)
Signal: Steady quarter
The read
The trajectory improved materially: revenue growth accelerated to 11.2% YoY from 1.3% in Q1FY27 and operating income margin expanded 50bps YoY to 23.6%, helped by employee cost growing 8.5% versus revenue growth of 11.2% and unallocable expenses falling to ₹1,514 Cr; however, PAT also benefited from other income of ₹1,337 Cr and the absence of the prior quarter’s ₹668 Cr legal settlement.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹73,188 Cr | +11.2% | +1.3% |
| EBIT | ₹17,301 Cr | +13.8% | |
| Net profit | ₹13,934 Cr | +14.9% | |
| EPS | ₹38.37 | +15.0% | |
| EBIT margin | 23.6% |
P&L walk
Revenue accelerated to ₹73,188 Cr, +11.2% YoY and +1.3% QoQ; operating income rose 13.8% YoY to ₹17,301 Cr as employee cost grew 8.5%, while PAT rose 14.9% to ₹13,934 Cr aided by higher other income and the absence of the prior quarter’s ₹668 Cr legal-claim settlement.
Segments
BFSI remained the largest engine at ₹28,882 Cr revenue and ₹7,351 Cr segment result, while Consumer Business showed the fastest reported revenue growth at 7.6% YoY; Others dragged momentum with revenue up 14.9% but segment result down 17.7% to ₹1,273 Cr.
Key positives
- Revenue from operations reached ₹73,188 Cr, growing 11.2% YoY versus 1.3% YoY in Q1FY27, indicating a clear acceleration in demand conversion.
- Operating income rose 13.8% YoY to ₹17,301 Cr and margin expanded 50bps YoY to 23.6%, with employee costs up 8.5% versus revenue growth of 11.2%.
- BFSI generated ₹28,882 Cr of revenue and ₹7,351 Cr of segment result, while Consumer Business segment result rose 15.6% YoY to ₹3,316 Cr.
- Operating cash flow was ₹25,801 Cr in H1FY27, exceeding reported H1 PAT of ₹27,354 Cr after taxes and working-capital movements.
Key concerns
- Other income rose 54.3% YoY to ₹1,337 Cr, making the PAT increase of 14.9% faster than operating income growth of 13.8%.
- Others segment result fell 17.7% YoY to ₹1,273 Cr despite revenue growth of 14.9%, creating a drag on consolidated segment profitability.
- Depreciation fell 10.7% YoY to ₹1,262 Cr while property, plant and equipment rose to ₹11,893 Cr, requiring monitoring of commissioning and depreciation timing.
Research and educational content only. Not investment advice.