Date: October 28, 2026

Financial Results (Standalone & Consolidated)

Q2 FY27 Performance:

  • Revenue: $5,145 million (1.2% sequential growth, 1.5% YoY growth in constant currency)
  • AI Revenue: 10.5% of total revenue (29% sequential growth from 8.2% in Q1)
  • Operating Margin: 21% (stable sequentially)
  • Free Cash Flow: $928 million (113% of net profit)
  • EPS: ₹19.32 (8.7% YoY growth)

H1 FY27 Performance:

  • Revenue Growth: 1.9% constant currency, 2.1% reported
  • Operating Margin: 21% (midpoint of guidance range)
  • EPS: ₹38.51 (11.7% YoY growth)
  • Fresher Hiring: 13,000 in H1 (target ~20,000 for FY27)

Margin Analysis:

Q2 margin decline of 0.1% sequentially comprised:

  • Headwinds: 70 bps from sequential change in post-sales customer support, 20 bps additional impact from acquisitions
  • Tailwinds: 40 bps from rupee depreciation, 20 bps from Project Maximus, 20 bps from higher calendar/working days

Dividend Declaration

  • Interim dividend of ₹26 per share declared (13% increase compared to last year)
  • Part of capital allocation policy to return 85% of free cash flow to shareholders over five-year period

Large Deals & Contracts

Q2 Deal Wins:

  • Total Contract Value: $5.2 billion (second highest quarterly TCV in last five years)
  • Net New Component: 62%
  • Includes two mega deals:
  • $2+ billion net new deal with financial services client (7-year duration, expected to contribute 1% growth in FY28)
  • $1 billion renewal with existing financial services client

Vertical Distribution:

  • Financial Services: 7 deals
  • Manufacturing: 5 deals
  • Communications, EURS, Life Sciences: 2 deals each
  • Hi-Tech: 1 deal

Geographic Distribution:

  • North America: 9 deals
  • Europe: 9 deals
  • Rest of World: 1 deal

Guidance & Outlook

Revised Full-Year FY27 Guidance:

  • Revenue Growth: 1% to 2% YoY constant currency (reduced from 1.5%-3%)
  • Operating Margin: 20% to 22% (unchanged)
  • Effective Tax Rate: 29% to 30%

Guidance Revision Drivers:

  • Softer-than-expected H1 performance
  • Pricing pressure due to competitive intensity
  • Higher asks on productivity from clients
  • Slower discretionary spend in Retail and Hi-Tech verticals
  • Impact from offshoring changes and walked deal (~1.8-2% total impact)

Operational Highlights

Headcount & Utilization:

  • Net headcount increase: 4,400 employees
  • Attrition: 12.7% (vs 13% sequentially)
  • Utilization including trainees: 85.4% (+0.5% sequentially)
  • Utilization excluding trainees: 81.9%
  • Onsite mix: 22.6% (continuing downward trend)

AI Capabilities & Investments:

  • Topaz Fabric platform with 15 different foundation models
  • Partnerships with frontier model companies (both open-weight and closed models)
  • 80,000+ employees working on coding tools (number increasing)
  • Focus on six AI areas: building agents, legacy modernization, process AI, data AI, etc.

Vertical Performance

Strong Performers:

  • Financial Services: Robust growth with $3.5+ billion large deal signings in Q2
  • Energy Utilities: Good strength
  • Manufacturing: Good strength despite near-term pressures

Weaker Performers:

  • Retail: Impacted by lower third-party revenues, subdued environment, macro uncertainty
  • Hi-Tech: Impacted by lower third-party revenues and reduced spend in few large clients

Geographic Performance

  • North America: Softness due to client-specific ramp downs and lower discretionary spend
  • Europe: Strong performance
  • Rest of World: Strong performance
  • India: Revenue increased (seasonality related to returns filing)

Strategic Updates

AI Strategy:

  • $300 billion addressable market identified across six broad areas
  • AI revenue growth driven by new work rather than reclassification
  • Focus on business transformation deals underpinned by AI
  • Strong positioning in GCC (Global Capability Center) market with AI transformation

Competitive Position:

  • Discipline in contract selection based on economic guidelines
  • Maintaining margin profile despite investment in business
  • Strong cash flow generation supporting capital allocation

Risk Factors

  • Continued competitive intensity and pricing pressure
  • AI-driven productivity benefits impacting traditional revenue
  • Macroeconomic uncertainties including geopolitical tensions, inflationary pressures
  • Seasonally weaker H2 with furlough impacts