TCS vs HCL Tech vs Tech Mahindra vs Wipro: Which IT stock won Q2 results 2026? AI revenue, deal wins compared
India's leading IT companies delivered mixed performances in the September quarter of FY27, with artificial intelligence (AI) increasingly shaping revenue growth, deal wins and future business strategies. While TCS, HCL Tech and Tech Mahindra reported strong profit growth, Wipro faced pressure from declining large deal bookings and lower earnings.
As enterprises move from AI experiments to large-scale deployments, IT companies are competing to secure contracts in AI-led transformation, software engineering, automation and digital services. However, strong AI demand does not automatically translate into faster overall revenue growth or higher margins.
Here's how Tata Consultancy Services (TCS), HCL Technologies, Tech Mahindra and Wipro compared in Q2FY27, covering financial performance, AI initiatives, deal wins and dividends.
Tata Consultancy Services reported consolidated revenue of ₹73,188 crore in Q2FY27, up 11.2% year-on-year (YoY), while net profit increased 15% to ₹13,884 crore. Its quarterly deal bookings stood at $9.6 billion, providing visibility into future business.
TCS's annualised AI revenue run rate exceeded $3.1 billion, accounting for more than 10% of its total revenue. The company expanded its AI partnerships with global businesses, including Porsche AG and Best Buy, as enterprises increasingly seek AI implementation, software modernisation and technology management services.
TCS also recommended and approved an interim dividend of ₹12 per share, with a face value of Re 1 each.
However, revenue growth remained subdued sequentially. Revenue increased just 0.5% quarter-on-quarter in constant-currency terms, indicating that rapid AI growth has yet to translate into a broader acceleration in business momentum. Its operating margin remained around 24%, broadly unchanged sequentially.
What it means: TCS has an advantage in scale, AI revenue and client relationships. Its ability to convert AI partnerships into sustained revenue growth will be important in determining whether the technology becomes a stronger driver of overall performance.
HCL Technologies reported revenue from operations of ₹35,620 crore, up 11.52% YoY, marginally ahead of TCS's 11.2% growth. Net profit rose 21.2% to ₹5,132 crore. The company also announced an interim dividend of ₹12 per equity share of face value ₹2 each.
HCLTech reported $219 million in advanced AI revenue for the second quarter of fiscal year 2027 (Q2 FY27).
A major highlight was a $1.14 billion AI deal with Mercedes-Benz, contributing to quarterly deal bookings of nearly $3.3 billion. HCL Tech's advanced AI revenue increased 78% in constant-currency terms to $219 million, demonstrating growing demand for AI-related services.
Its operating margin expanded by 131 basis points sequentially to 18.2%, supported by AI-led efficiencies and a higher contribution from advanced AI services.
The company also raised the lower end of its FY27 revenue growth guidance to 2.5% from 1% earlier, retaining the upper end at 4% in constant-currency terms.
What it means: HCL Tech combined faster revenue growth with strong profit expansion, improving margins and an upgraded growth outlook. Its Mercedes-Benz contract and advanced AI revenue growth position it well to benefit from enterprise AI adoption, although sustained execution remains crucial.
Tech Mahindra reported consolidated revenue of ₹16,180 crore in Q2FY27, up 15.6% YoY. Net profit surged 32.7% to ₹1,586 crore, while earnings before interest and taxes rose 40.5%.
The company secured deal wins exceeding $1 billion in each of the last four quarters and delivered 7.2% YoY constant-currency revenue growth. CEO and
Chief Financial Officer Rohit Anand highlighted margin expansion for the twelfth consecutive quarter, attributing it to disciplined execution. He said AI investments would help improve productivity, drive innovation and build capabilities for future growth.
Tech Mahindra also expanded its AI initiatives. It launched Zero Gravity Telco Architecture to help telecom operators deploy AI agents and transition to AI-native operations. It partnered with SpaceXAI to develop an AI-powered software engineering practice and launched Indus Terra, a 30-billion-parameter educational large language model, with Nvidia and AWS under the IndiaAI Mission.
Other initiatives included its Consumer Agentic Experience Studio with Google, SAP and Blue Yonder, and expanded Google Cloud collaboration, including hands-on Gemini workshops for more than 12,500 employees worldwide.
The company declared an interim dividend of ₹15 per equity share of face value ₹5, equivalent to 300%. It also approved a 1:1 bonus issue, subject to shareholder approval through a postal ballot.
What it means: Tech Mahindra recorded the strongest profit growth among the four companies, supported by improving execution and sustained deal wins. Its ability to convert AI-led contracts into revenue while maintaining margin expansion will determine the sustainability of its turnaround.
Wipro reported gross revenue of ₹24,752.7 crore in Q2FY27, up 9.1% YoY. However, consolidated net profit declined 1.4% to ₹3,200.6 crore, making it the only company among the four to report a year-on-year profit decline.
Total deal bookings fell to $2.6 billion from $4.7 billion a year earlier. They also declined 22.9% sequentially in constant-currency terms. Large deal bookings dropped 58.6% sequentially to $0.7 billion, reflecting continued caution in discretionary technology spending.
Despite these pressures, Wipro reported encouraging developments in Europe and outcome-based AI engineering engagements. It is investing in its AI Native business unit to expand its capabilities and capture demand for AI-led transformation.
Wipro also announced that it would acquire a 20% shareholding in FLARRE.AI Inc through its step-down subsidiary, Wipro IT Services LLC. The acquisition is expected to be completed by October 31, 2026. FLARRE.AI develops AI-based products and platforms, and Wipro said the investment aims to strengthen its AI capabilities in the global insurance sector.
For Q3FY27, Wipro expects IT services revenue of $2,571 million to $2,625 million, implying sequential organic revenue growth guidance of minus 1.5% to plus 0.5% in constant-currency terms.
What it means: Wipro faces a more challenging near-term outlook, with falling profits and weaker deal bookings. Its AI investments and FLARRE.AI acquisition could strengthen future capabilities, but converting these initiatives into stronger revenue growth remains a key challenge.
Tech Mahindra added as much as 7% to its day's high of ₹1,763.95 per share on BSE. Meanwhile, Infosys and Wipro rose over 3.5% each, while Tata Consultancy Services (TCS) gained around 3%. L&T Technology Services, Mphasis, LTIMindtree and HCL Technologies also traded higher, up around 1% each.
Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends. An alumnus of the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi, Pranati brings a strong academic foundation to her journalism. She specialises in real-time financial reporting, with a keen focus on precision, balance, and insight, aiming to decode market movements in a way that is both informative and accessible to readers across experience levels.
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