​TCS Q4 FY 2025 Results: Profit Declines Amidst Robust Revenue and Record Deal Wins​

Tata Consultancy Services (TCS) reported its fourth quarter fiscal year 2025 financial results on April 10, 2025, with subtle, but distinct performance depicting an environment where the company faces challenges, as well as where it is able to demonstrate its strength.​

Financial Performance Overview

For Q4 FY2025, TCS said its consolidated net profit fell one per cent sequentially and one percent year on year to ₹12,224 crore from ₹12,434 crore in the year ago period. Analysts had expected a profit of 512,000 rupee, or ₹12,650 crore. ​

Though the profit dropped, the company’s revenue from the operations was up 5.3% year on year ₹64,479 crore in Q415 FY2024 from ₹61,237 crore in Q4 FY2024. But this was somewhat lower than the expected ₹64,856 crore. ​

Annual Highlights

During the full fiscal year of 2025, TCS surpassed ₹2,55,324 crore in revenue, with 6% year on year growth. Excluding currency effects, the growth rates were at 4.2%. 

For the quarter, the company continued to enjoy a 24.2% of operating margin and 19.0% of net margin. Cash conversion was robust with cash from operating activities amounting to 125.1% of net income. ​

Dividend Declaration

TCS’s Board of Directors had declared a final dividend of ₹30 per equity share for FY2025, which is subject to shareholders approval at the upcoming annual general meeting. Payment will be made in due course with the announcement of the record date and payment schedule. ​

Deal Wins and Order Book

TCS signed new deals with $12.2 billion total contract value (the highest for any quarter in the company’s history) in the quarter. The fallout of that was a book to bill ratio of 1.6. During the fiscal year TCV was $39.4 billion, and we highlighted strong client confidence and a strong pipeline for the entire fiscal year. ​

Geographical and Sectoral Performance

Also during the quarter, the Indian market had the highest revenue growth of 33% on a year-on-year basis regionally. In constant currency terms, the Middle East & Africa increased by 13.2%, Latin America by 4.3% and Asia Pacific by 6.4%.

On the sector scale, the Energy, Resources, and Utilities sector grew by 4.6% year on year while the Banking, Financial Services, and Insurance (BFSI) sector also grew by 2.5% dragging the overall business growth to growth.

Management Commentary

It is satisfying to reach the $30 billion revenue mark and the company has an equally strong order book, said CEO K. Krithivasan. TCS AI capability and drive for digital innovation is something that helps in serving customers in the macroeconomic uncertainty, he noted. 

Outlook

TCS, however, faced a small dip in net profit, but its overall growth in revenue, booking record deal wins, and healthy margins suggest its strength amidst the challenging times. TCS has a robust order book and is well placed for sustained growth in the coming fiscal year with the strategic focus on digital transformation.​

Since TCS continues to leverage its technological capabilities to fuel value, investors and stakeholders will carefully study how the organization manages to perform in this changing global economic scenario.