Transcript of earnings conference call for quarter and six-month period ended September 30, 2026

TCS/SE/109/2026-27 October 14, 2026 National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block G, P. J. Towers, Bandra Kurla Complex, Bandra (East) Dalal Street, Mumbai - 400051 Mumbai - 400001 Symbol - TCS Scrip Code No. 532540 Dear Sirs, Sub: Transcript of the earnings conference call for the quarter and six-month period ended September 30, 2026 Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the transcript of the earnings conference call for the quarter and six-month period ended September 30, 2026, conducted after the meeting of Board of Directors held on October 8, 2026, for your information and records. The above information is also available on the website of the Company: www.tcs.com. Thanking you, Yours faithfully, For Tata Consultancy Services Limited Yashaswin Sheth Company Secretary ACS 15388 Encl: As above 9th Floor Nirmal Building Nariman Point Mumbai 400 021 Tel 91 22 6778 9595 Fax 91 22 6630 3672 e-mail corporate.office@tcs.com website www.tcs.com Registered Office 9th Floor Nirmal Building Nariman Point Mumbai 400 021 Corporate Identity No. (CIN): L22210MH1995PLC084781 Tata Consultancy Services Limited Transcript for Earnings Conference Call October 08, 2026,19:00 hrs IST (09:30 hrs US ET) Moderator: Ladies and gentlemen, good day and welcome to the TCS Earnings Conference Call. As a reminder, all participant lines will be in the listen- only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Nehal Shah, Head - Investor Relations at TCS. Thank you and over to you. Nehal Shah: Thank you, operator. Good evening and welcome, everyone. Thank you for joining us today to discuss TCS' financial results for the second quarter of FY 2027 that ended on September 30th, 2026. This call is being webcast through our website, and an archive including the transcript will be available on the site for the duration of this quarter. The financial statements, quarterly fact sheet, and press releases are also available on our website. Our leadership team is present on this call to discuss our results. We have with us today Mr. K Krithivasan, Chief Executive O(cid:431)icer and Managing Director. K Krithivasan: Hi everyone. Nehal Shah: Ms. Aarthi Subramanian, Executive Director, President, and Chief Operating O(cid:431)icer. Aarthi Subramanian: Good evening, everyone. Nehal Shah: Mr. Samir Seksaria, Chief Financial O(cid:431)icer. Samir Seksaria: Hello everyone. Nehal Shah: And Mr. Sudeep Kunnumal, Chief HR O(cid:431)icer. Page 1 of 28 Sudeep Kunnumal: Hello everyone. Nehal Shah: Our management team will give a brief overview of the company's performance followed by a Q&A session. As you are aware, we don't provide any specific revenue or earnings guidance, and anything said on this call, which reflects our outlook for the future or which could be construed as a forward-looking statement, must be reviewed in conjunction with the risk that the company faces. We have outlined these risks in the second slide of the quarterly fact sheet available on our website and emailed them out to those who have subscribed to our mailing list. With that, I would like to turn the call over to Krithi. K Krithivasan: Thank you, Nehal. Good day everyone and thank you for joining us. I would like to begin by calling out the key takeaways from our Q2FY27 performance. First, we sustained our growth momentum this quarter, despite an environment that remains selective and uneven. Revenue for the quarter was ₹73,188 crore. In constant currency, revenue grew 0.5% sequentially and 2.8% year-on-year. International revenue grew 1.2% sequentially in constant currency. All international markets grew sequentially, led by the United Kingdom at 3.5%, followed by North America and Continental Europe at 0.4% each. Second, our growth has broadened across our core portfolio. BFSI grew 2.5% sequentially in constant currency, while Manufacturing and Technology and Services each grew 3.1%. Consumer Business and Energy, Resources and Utilities showed an improvement compared to the previous quarter. India revenue grew 6%, and Regional Markets grew 3.6% year-on-year. Third, our order book remained healthy. TCV for the quarter was US$9.6 billion. This excludes the Porsche and Best Buy deals. The quality of the Page 2 of 28 wins demonstrates our continued relevance in large, complex, and strategically important transformation programs. Fourth, AI continues to scale as a structural growth opportunity. Annualized AI revenue reached $3.1 billion and crossed 10% of our overall revenue. Finally, we advanced our strategy through AI-led deals, ecosystem partnerships, and targeted acquisitions. - Our partnership with Porsche and the proposed acquisition of MHP, which is subject to regulatory approvals, strengthen our position in AI powered mobility and engineering. - The Best Buy GCC engagement highlights our ability to help clients build and transform AI-native global capability centers. - We also launched TCS ADD AgentHub for drug discovery, domain- specific agentic control planes, and new Physical AI capabilities, including Autonomous Engineering Lab powered by NVIDIA in Bengaluru and an AI-first lights-out factory lab in Pune. The demand environment has not materially changed since last quarter, and discretionary programs without near-term value remain under scrutiny. Against this backdrop, our primary opportunity and focus are on translating the advances in AI into measurable enterprise advantage for our clients. I will now invite Samir, Aarthi, and Sudeep to go over di(cid:431)erent aspects of our performance during the quarter. I'll step in later and provide more color on the demand trends that we are seeing. Over to you, Samir. Samir Seksaria: Thank you, Krithi. Good day everyone. Our quarterly revenue was ₹73,188 crore, a growth of 1.3% sequentially and 11.2% on a year-on-year basis. In dollar terms, revenue was $7,642 million, a growth of 20 basis points sequentially and 2.4% year-on-year. Page 3 of 28 In constant currency terms, our growth was 50 basis points QoQ and 2.8% YoY. Our operating margins remained stable sequentially at 24%. Consistent with our philosophy to drive long-term profitable growth, we continued to prioritize investments for growth. In Q2, we made investments in strategic partnerships, M&A-related initiatives, and hiring of niche talent. As we build future capacity and navigate demand transitions, we have invested in a higher bench and increased hiring of subcontractors to meet near-term skills and delivery requirements. This quarter, we were able to mitigate these headwinds partly by currency gains and operating leverage. Many of these investments are strategic in nature and are focused on long- term value creation. Our disciplined approach to margin management remains unchanged. As growth improves, we expect to benefit from enhanced scale e(cid:431)iciency while continuing to optimize our cost structures, align capacity with demand, and maintain our disciplined execution. While we are prioritizing investments, we are focusing on 5 key areas:  First, we continue to strengthen our portfolio through targeted capability acquisitions.  Second, we are adding a stronger partnership ecosystem with Frontier AI companies, Hyperscalers, Semi-Conductor ecosystem, Tier-1 industrial suppliers, and enterprise software providers.  Third, we are accelerating investments in our high-growth service areas – We are making investments in sales, solutioning, service transformation, new o(cid:431)erings, and business models across the five big bets we have called out, with a specific focus on AI and data. Page 4 of 28  Fourth, we are [Showing first 8,000 characters — download PDF for full document]