TCS Q4 Results profit dips slightly; Annual revenue crosses $30 billion

Tata Consultancy Services (TCS) released its Q4 FY25 earnings on April 10, posting a net profit of ₹12,224 crore—down 1.69% year-on-year. However, the IT giant crossed a significant milestone, with its annual revenue surpassing $30 billion, backed by steady demand in key sectors and continued investment in AI and digital transformation.

Despite the marginal dip in profit, TCS reported a 5.3% rise in revenue, reaching ₹64,479 crore for the quarter, compared to ₹61,237 crore in Q4 last year. The company also declared a final dividend, rewarding shareholders after a solid financial year.

Sector-wise Performance & Growth Drivers

TCS saw growth led by the Energy, Resources & Utilities (+5.1%) and Manufacturing (+2.9%) sectors. Revenue from the Banking, Financial Services and Insurance (BFSI) vertical remained strong at ₹24,257 crore. Consumer business and technology verticals also contributed significantly.

Despite global headwinds like reduced discretionary IT spending and intense competition, Gartner analysts noted that TCS has managed its financials well and continues to be a strategic IT partner across industries.

Key Highlights of FY25

Annual Revenue: $30+ billion

Clients: 64 clients in the $100 million+ band (up by 2 YoY)

Employee Headcount: 607,979, with 35.2% women across 152 nationalities

Attrition Rate: Slightly up at 13.3%, but quarterly attrition declined by 130 basis points

Free Cash Flow: ₹46,449 crore

Total Shareholder Payout: ₹44,962 crore

AI and Strategic Bets for the Future

TCS is leaning heavily into AI and digital platforms to stay competitive. It struck key partnerships during the quarter:

With Google Cloud to scale its GenAI capabilities

With Vantage Towers in Europe to modernize digital services

With MassRobotics to push innovation in robotics

With Muscat Clearing & Depository, deploying TCS BaNCS and Quartz to modernize Oman’s securities infrastructure

Leadership Updates

TCS announced two major appointments:

Aarthi Subramanian as Executive Director, President & COO

Mangesh Sathe as Chief Strategy Officer and Head of Global Consulting and M&A, effective May 1, 2025

Outlook for FY26

TCS leadership remains optimistic, expecting FY26 to outperform FY25, despite ongoing uncertainties. Hiring is likely to stay on par or increase, and decisions on wage hikes will be taken as the year progresses.

As generative AI continues to shape the tech landscape, TCS is positioning itself at the forefront of innovation, betting on digital transformation to drive the next wave of growth.