TCS' Q2 USD revenue came in at $7.6 billion, rising 0.5% QoQ in constant currency terms, in line with Motilal Oswal's estimates of 0.5% QoQ CC. In terms of geographies, UK, North America, Europe rose 3.5%/0.4%/0.4% QoQ CC, while India declined 10.3% QoQ cc.TCS reported a deal TCV of $9.6 billion in Q2 FY27, rising 1.1% QoQ but declining 4% YoY.
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Motilal Oswal Report
Motilal Oswal reiterated 'Buy' on Tata Consultancy Services Ltd. with a Rs 2,400 target, implying about 16% upside from the report current market price of Rs 2,076, while noting improved international growth but continued near-term margin pressure. AI services revenue rose to an annualised $3.1 billion, crossing 10% of total revenue.
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TCS Q2 Results Highlights
TCS reported Q2 FY27 USD revenue of $7.6 billion, rising 0.5% QoQ in constant currency, in line with the brokerage's estimate of 0.5% QoQ CC growth.
Q2 growth was led by manufacturing/hi-tech/BFSI, which grew 3.1%/3.1%/2.5% QoQ CC, while regional markets/consumer business declined 5.8%/0.7% QoQ CC.
Ebit margin stood at 24% (flat QoQ), below Motilal Oswal's estimate of 25%.
Adj PAT remained flat QoQ and rose 7.5% YoY at Rs 13,900 crore, below estmate of Rs 14,400 crore.
In INR terms, H1 FY27 revenue/Ebit/ adjusted net profit grew 12.6%/8.7%/8.1% YoY.
In H2 FY27, Motilal Oswal expects revenue/Ebit/adj. PAT to grow 6.5%/4.3%/4.9% YoY.
TCS reported a deal TCV of $9.6 billion in Q2 FY27, rising 1.1% QoQ but declining 4% YoY. The book-to-bill ratio stood at 1.3x.
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