TCS’s in-line Q2 coincides with anti-AI trade on OpenAI’s revenue fears

What happened: TCS reported Q2 FY27 results with no major negative surprises, as India's Nifty IT index rose 2.3% on reports OpenAI's annualized revenue was about $50 billion at September-end. Key numbers: Nifty IT up 2.3%; Nifty 50 up over 1%; TCS, Infosys, Wipro, HCL rose up to 4%; constant-currency revenue growth 0.5% Why it matters: Demand commentary showed little change, with clients cautious on discretionary spending, keeping revenue-growth visibility muted. Margin pressure is building in H2FY27, and JM Financial said execution will be key as TCS prioritizes growth over margins.

TCS reported Q2 FY27 results with no major negative surprises, as India's Nifty IT index rose 2.3% on reports OpenAI's annualized revenue was about $50 billion at September-end.

Demand commentary showed little change, with clients cautious on discretionary spending, keeping revenue-growth visibility muted. Margin pressure is building in H2FY27, and JM Financial said execution will be key as TCS prioritizes growth over margins.