{"id":2544,"date":"2026-10-09T08:33:54","date_gmt":"2026-10-09T08:33:54","guid":{"rendered":"https:\/\/newsraise.com\/in\/2026\/10\/09\/tcs-q2-fy27-profit-rise-gm-breweries-share-drop\/"},"modified":"2026-10-09T08:33:54","modified_gmt":"2026-10-09T08:33:54","slug":"tcs-q2-fy27-profit-rise-gm-breweries-share-drop","status":"publish","type":"post","link":"https:\/\/newsraise.com\/in\/2026\/10\/09\/tcs-q2-fy27-profit-rise-gm-breweries-share-drop\/","title":{"rendered":"TCS posts 15% profit rise in Q2 FY27 as GM Breweries shares tumble"},"content":{"rendered":"\n<!-- Quick Adsense WordPress Plugin: http:\/\/quickadsense.com\/ -->\n<div class=\"9fece8afa224fd09e54b043d0febfb58\" data-index=\"1\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- NR ATF -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-8898941184964366\"\r\n     data-ad-slot=\"4839033563\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>Tata Consultancy Services (TCS) announced its financial results for the quarter ending September 2026, showing a 14.9% rise in net profit to \u20b913,884\u202fcrore and an 11% increase in revenue to \u20b973,188\u202fcrore. The figures comfortably beat market expectations that had pegged revenue around the \u20b973,000\u202fcrore mark and net profit near \u20b913,700\u202fcrore. Consolidated profit after tax (PAT) climbed 14.8% year\u2011on\u2011year to \u20b913,934\u202fcrore, up from \u20b912,131\u202fcrore in the same quarter a year earlier.<\/p>\n<h2>Financial performance and margins<\/h2>\n<p>Operating earnings (EBIT) rose to \u20b917,553\u202fcrore from \u20b917,317\u202fcrore in the previous quarter, a 1.36% sequential increase and a 5.96% improvement year\u2011on\u2011year. The company reported an operating margin of 24.0%, while net cash generated from operations reached \u20b914,190\u202fcrore, representing 102.2% of net income. Total contract value (TCV) signed during the quarter amounted to US$9.6\u202fbillion.<\/p>\n<p>Revenue growth was broad\u2011based. In constant\u2011currency terms, international revenue grew 1.2% quarter\u2011on\u2011quarter, while domestic segments such as BFSI, manufacturing and technology &#038; services each posted 2.5% to 3.1% gains. Annualized AI\u2011related revenue crossed the US$3\u202fbillion threshold, accounting for more than 10% of total revenue.<\/p>\n<h2>Strategic deals and AI focus<\/h2>\n<p>The quarter\u2019s performance was anchored by two marquee partnership announcements. TCS entered a five\u2011year strategic alliance with Porsche AG, which included the acquisition of MHP, Porsche\u2019s Germany\u2011based management and IT consulting subsidiary. In parallel, the firm secured an agreement to transition Best\u202fBuy\u2019s Global Capability Center in India to TCS, converting it into an AI Capability Center. Chief Executive Officer and Managing Director K\u202fKrithivasan said the deals represent \u201ca new category of transformation partnerships\u201d and enable the company to \u201cindustrialise AI at scale.\u201d<\/p>\n<p>AI momentum was a recurring theme in the earnings call. Executive Director Aarthi Subramanian noted that annualised AI revenues now exceed US$3\u202fbillion and that demand for AI\u2011native solutions, enterprise\u2011system transformation and autonomous global business services continues to accelerate. She added that cybersecurity remains a top priority for clients. The company\u2019s patent activity underscored its innovation drive, with a total portfolio of 10,044 patent applications and 5,885 patents granted. During the quarter, 241 new applications were filed and 215 patents were granted, including 180 AI\u2011related applications and 47 AI\u2011related grants.<\/p>\n<h2>Workforce, dividend and outlook<\/h2>\n<p>Human\u2011resource metrics showed continued investment in talent. The employee base crossed the 598,000 mark, and learning hours rose 17% sequentially to 17.1\u202fmillion. Attrition held steady at 13.3%, a level described as stable by Chief Human Resources Officer Sudeep\u202fKunnumal. The board declared a second interim dividend of \u20b912 per equity share (face value \u20b91) for the fiscal year 2026\u201127, with a record date of 14\u202fOctober\u202f2026 and a payment date of 30\u202fOctober\u202f2026.<\/p>\n<p>Chief Financial Officer Samir\u202fSeksaria emphasized that TCS is strengthening capabilities through acquisitions, partnerships and targeted talent investments while maintaining strong cash conversion and industry\u2011leading profitability. The executive team signalled that the demand environment had not materially changed since the first quarter, noting that discretionary spending remained under pressure but that growth momentum is expected to continue in the medium term, supported by deal wins and client conversions. Margin headwinds were anticipated from seasonality and acquisition\u2011related dilution in the second half of the fiscal year.<\/p>\n<h2>Market reaction and GM Breweries contrast<\/h2>\n<p>Following the earnings release, TCS shares opened flat at \u20b92,076 on the National Stock Exchange, later dipping to \u20b92,061.90 amid broader market weakness. Earlier in the session, the stock had risen to \u20b92,141.50 from a previous close of \u20b92,080.30 before retreating. The broader Indian market was under pressure, with the Sensex falling 1.61% to 71,470.62 and the Nifty\u202f50 slipping 1.74% to 22,209.10. All sectors were in the red, with metals and realty leading the losses.<\/p>\n<p>In contrast, GM Breweries posted a modest earnings improvement but saw its share price plunge more than 10% in the same trading day. The company reported a standalone PAT of \u20b939.29\u202fcrore, up 12% year\u2011on\u2011year, yet its stock closed at \u20b9887.45 and later at \u20b9883.80, reflecting a sharp market reaction. The divergence highlights the sensitivity of individual stocks to broader market sentiment, even when earnings beat expectations.<\/p>\n<p>Overall, TCS\u2019s strong financial performance, strategic partnerships and expanding AI portfolio positioned the firm as a key growth driver in India\u2019s technology sector, while the broader market\u2019s volatility tempered immediate share\u2011price enthusiasm. Analysts will likely watch the company\u2019s ability to translate its AI and partnership initiatives into sustained revenue growth as the fiscal year progresses.<\/p>\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>Tata Consultancy Services reported a 15% year\u2011on\u2011year jump in profit and an 11% rise in revenue for Q2 FY27, while GM Breweries saw its shares fall more than 10% after posting a modest earnings gain.<\/p>\n","protected":false},"author":3,"featured_media":2545,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[299],"tags":[2788,2789,2787,2786,423],"class_list":["post-2544","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-ai-revenue","tag-gm-breweries","tag-india-it","tag-q2-results","tag-tcs","entry"],"_links":{"self":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/2544","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/comments?post=2544"}],"version-history":[{"count":0,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/2544\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/media\/2545"}],"wp:attachment":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/media?parent=2544"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/categories?post=2544"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/tags?post=2544"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}