Tata Consultancy Services (TCS) reported a 2% year-on-year decline in Q4FY25 net profit to ₹12,224 crore, missing market expectations of ₹12,650 crore. Revenue rose 5.3% to ₹64,479 crore but fell short of the estimated ₹64,800 crore. Despite earnings pressure, the IT giant secured $12.2 billion in new deals, up from $10.2 billion in Q3, reflecting sustained demand for its services.
The board approved a final dividend of ₹30 per share, bringing FY25’s total dividend to ₹126 per share. However, TCS shares closed 1.64% lower at ₹3,239 on the BSE, extending the stock’s 2025 decline to 21%. Macroeconomic challenges and reduced discretionary spending by clients weighed on profitability, capping a difficult year marked by sluggish growth in key markets.
TCS emphasized resilience in its deal pipeline and operational efficiency as strengths heading into FY26. While weak tech spending in sectors like retail and finance impacted margins, the company remains optimistic about long-term growth driven by cloud adoption, AI solutions, and cost optimization strategies. The results underline the dual pressures of global uncertainty and competitive dynamics faced by India’s largest IT firm, even as it retains its leadership in large-scale digital transformation projects. Investors await clearer signs of margin recovery and demand revival in core markets.
