Tata Consultancy Services (TCS), India’s largest IT services company, recently unveiled its financial results for the third quarter of fiscal year 2025 (Q3 FY25), showcasing a blend of robust growth and strategic resilience.

Here's a closer look at TCS’s performance, key drivers, and what lies ahead for this industry giant.

In Q3 FY25, TCS reported consolidated revenues of ₹63,973 crore, marking a 5.6% year-on-year increase. Although this figure fell slightly short of the anticipated ₹64,748 crore, the company’s net profit of ₹12,380 crore was a commendable 12% increase compared to the same period last year. The operating margin stood at 24.5%, reflecting a slight decline of 50 basis points year-on-year but an improvement of 40 basis points from the previous quarter.

The company also experienced significant growth in various regions:

• India: A staggering 70.2% increase, highlighting the domestic market's strength.
• Middle East & Africa: Grew by 15%.
• Latin America: Saw a modest increase of 7%.
• Asia Pacific: Recorded a growth of 5.8%.

One of the standout achievements for TCS this quarter was its Total Contract Value (TCV), which reached an impressive $10.2 billion—a notable rise from $8.6 billion in the previous quarter. This robust TCV underscores strong demand for TCS's services across various sectors and geographies.

In addition to its solid financial performance, TCS declared a dividend of ₹76 per share, which includes a special dividend of ₹66. The record date for this dividend is set for January 17, 2025, with payment scheduled for February 3, 2025. This move reflects TCS's commitment to returning value to its shareholders.

Despite missing some estimates, analysts maintain a positive outlook on TCS. CLSA upgraded its rating to 'Outperform', while Nuvama retained its 'Buy' rating with revised target prices due to the company’s strong order book and deal wins.