Tata Consultancy Services (TCS), India's largest IT services company, has reported robust financial results for the fourth quarter and full fiscal year 2025, crossing the $30 billion annual revenue mark for the first time.

Q4 and FY25 Financial Highlights

TCS reported a consolidated revenue of ₹64,479.00 crore for Q4 FY25, marking a 5.3% year-on-year growth. The company's net profit for the quarter stood at ₹12,224.00 crore, showing a slight decline of 1.7% compared to the same period last year.

For the full fiscal year 2025, TCS achieved a significant milestone with its revenue reaching ₹255,324.00 crore ($30.00 billion), representing a 6.0% year-on-year growth. The annual net profit rose to ₹48,553.00 crore, up 5.8% from the previous year.

Strong Order Book and Operational Performance

TCS demonstrated robust deal-winning capabilities, with a total contract value (TCV) of $12.20 billion for Q4 and an impressive $39.40 billion for the full year. The company's operating margin for FY25 stood at 24.3%, while the net margin was 19.0%.

Segment and Market Performance

The company witnessed strong growth across various segments and markets:

Workforce and Talent Development

As of March 31, 2025, TCS's workforce stood at 607,979 employees, representing 152 nationalities. The company maintained a strong focus on talent development, with employees logging 56 million learning hours and acquiring 5.2 million competencies during the year.

Dividend Announcement

The Board of Directors has recommended a final dividend of ₹30.00 per share, subject to shareholders' approval at the upcoming Annual General Meeting.

Management Commentary

K Krithivasan, Chief Executive Officer and Managing Director of TCS, stated, "We are pleased to cross the $30 Billion in annual revenues and achieve a strong order book for the second consecutive quarter. Our expertise in AI and Digital Innovation, coupled with the unmatched knowledge of customer context and global scale makes us the pillar of support for our customers in this environment of macroeconomic uncertainty."

Samir Seksaria, Chief Financial Officer, added, "In FY25, our disciplined execution and operational rigor stood out again, as we defended our industry-leading margins while continuing with our investments in talent and capability building."

Future Outlook

With a strong order book and continued focus on innovation, particularly in AI and cloud services, TCS appears well-positioned to navigate the evolving technology landscape and maintain its growth trajectory in the coming fiscal year.

The company's ability to cross the $30 billion revenue mark despite global economic uncertainties underscores its resilience and strong market position in the IT services industry .

Tata Consultancy Services (TCS), India's largest IT services company, has reported mixed financial results for the fourth quarter and full fiscal year 2024-25, marking a significant milestone by crossing the $30 billion annual revenue mark. While global markets show resilience, the company faces challenges in its India business and macroeconomic headwinds.

Q4 FY2025 Performance Highlights

TCS reported a consolidated revenue of ₹64,479.00 crore for Q4 FY2025, representing a 5.3% year-over-year growth. The company's net profit for the quarter stood at ₹12,224.00 crore, showing a slight decrease from ₹12,434.00 crore in the same quarter last year.

Key Financial Metrics

• Operating Margin: 24.2% (down 30 bps sequentially)
• Net Margin: 19.0%
• Earnings Per Share (EPS): ₹33.79

Strong Order Book

TCS demonstrated robust deal-winning capabilities, securing orders worth $12.2 billion in Q4, with a book-to-bill ratio of 1.6. This strong performance in order acquisition underscores the company's continued market leadership and client trust.

Annual Performance FY2025

For the full fiscal year 2024-25, TCS achieved:

Total Contract Value (TCV) for FY25 reached $39.4 billion.

Segment Performance

The company witnessed mixed performance across various industry verticals:

• BFSI segment: Remains robust, contributing 37% of revenue
• Energy, Resources and Utilities: 5.1% YoY growth
• Manufacturing: 2.9% YoY growth
• Regional Markets: Exceptional 37.2% YoY growth
• India business: Slowdown reported due to near-completion of BSNL 4G rollout deal

Dividend Declaration

The Board of Directors has recommended a final dividend of ₹30.00 per equity share, subject to shareholders' approval at the upcoming Annual General Meeting.

Strategic Appointments

TCS announced two key leadership appointments:

1. Ms. Aarthi Subramanian as President and Chief Operating Officer
2. Mr. Mangesh Sathe as Chief Strategy Officer

These appointments aim to strengthen the company's leadership team and drive future growth strategies.

Client Metrics and Employee Data

• 64 clients in the $100 million+ revenue band
• Total employee headcount: 607,979
• IT Services attrition rate (LTM): 13.3%

CEO's Commentary

K Krithivasan, CEO and Managing Director of TCS, reported a slowdown in India business due to the near-completion of the BSNL 4G rollout deal. He also noted that global markets show resilience, with Q4 total contract value at $12.2 billion. Despite near-term headwinds due to macroeconomic uncertainty, the company maintains a positive outlook for FY2026.

Analyst Reactions

Despite the strong revenue milestone, analysts have expressed mixed opinions about TCS's growth outlook:

• ICICI Securities maintained an 'Add' rating on TCS after the Q4 results.
• Some analysts expect grimmer earnings for other IT peers due to TCS's lower percentage of discretionary revenue.
• Slower decision-making cycles and an uncertain growth outlook have led to cuts in EPS estimates for FY26-27 by 2-3.5%.
• IDBI Capital upgraded its rating on TCS to 'Buy', based on TCS's market leadership, strong managed portfolio, Gen AI projects, and workforce strength.

Market Response

Following the results and mixed analyst reactions, TCS shares ended 1.7% lower at ₹3,239.00 on the day of the announcement.

Conclusion

While TCS's achievement of crossing the $30 billion annual revenue mark is significant, the company faces challenges in its India business and near-term headwinds due to macroeconomic uncertainty. The resilience in global markets, robust BFSI segment performance, and strong order book provide some optimism. However, low discretionary demand may impact growth despite management's optimism for FY26. TCS's focus on AI, digital innovation, and customer-centric solutions remains key to navigating market challenges and capitalizing on new opportunities in the evolving global IT landscape.