TCS Q4 Results: Net Profit Declines 2%, FY25 Revenue Crosses $30 Bn

IT services giant Tata Consultancy Services (TCS) reported a nearly 2% year-on-year decline in consolidated net profit for Q4 FY25, posting Rs 12,224 crore amid persistent macroeconomic challenges facing the IT sector. The Tata Group company missed analysts' expectations of around Rs 12,500 crore in net profit for the January–March quarter.

In the same quarter last year, TCS had recorded a net profit of Rs 12,434 crore.

On a sequential basis, profit slipped by 1.3%. For the full financial year, the company’s revenue rose 6% year-on-year to Rs 2,55,324 crore, while net profit stood at Rs 48,553 crore.

TCS announced a final dividend of Rs 30 per equity share (face value Re 1).

"We delivered robust profitability and cash flows this quarter in a very challenging environment, without compromising on the right investments in our people, innovation, and infrastructure for long-term value creation,” said TCS CFO Samir Seksaria in a press release.

Meanwhile, CEO K Krithivasan lauded the company for crossing $30 billion in annual revenues. TCS crosses $30 billion in FY25 revenue, up 3.8% YoY

TCS's quarterly revenue from operations rose 2.5% year-on-year (YoY) to Rs 64,479 crore from Rs 63,973 crore last year in the fourth quarter. In dollar terms, it rose just 1.4% to $7,465 million.

The IT giant’s operating margin stood at 24.2% and net margin at 19.0%, with operating cash flow at 125.1% of net profit.

The total contract value (TCV) of the order book reached $12.2 billion, including $6.8 billion from North America, $4.0 billion from BFSI, and $1.7 billion from the Consumer Business segment.

However, geographically, the IT giant saw its growth in the North American market decline by 1.9% year-on-year in the fourth quarter.

EBIT margin of TCS fell below expectations at 24.2%, marking a fall of 30 basis points sequentially. TCV, meanwhile, stood at $12.2 billion in Q4, beating estimates. For the entire FY25, TCV performance stood at $39.4 billion.

The firm’s client base expanded similarly, with the order book TCV for the year at $39.4 billion—$21.6 billion from North America, $12.8 billion from BFSI, and $5.3 billion from the Consumer Business.

The company closed the year with 607,979 employees, 625 job lower than the last quarter. The IT services company reported a 13.3% LTM attrition rate.

“Our trainee onboarding in FY25 was 42,000 as planned,” said Milind Lakkad, Chief HR Officer.

TCS shares on NSE fell nearly 1.64% on April 9 to end at Rs 3,239 apiece.