India’s IT sector is a global leader, contributing 18 percent to worldwide IT outsourcing with exports projected at $210 billion in FY25. Domestic IT spending is expected to grow 11.1 percent to $161.5 billion, driven by AI adoption, cloudification, and cybersecurity investments. Job opportunities are set to rise by 15-20 percent.
Price Movement
With a market capitalization of Rs 11.74 lakh crore, the shares of Tata Consultancy Services Ltd were trading at Rs 3,246.35 per share, increasing around 0.01 percent as compared previous closing price of Rs 3,246.10 apiece.
Q4 Results
The shares of Tata Consultancy Services Ltd are trading flat after reporting below-estimated results in Q4FY25, Revenue increased by 1 percent on a quarter-on-quarter basis from Rs. 63,973 crore in Q3FY25 to Rs. 64,479 crore in Q4FY25. Further, revenue zoomed by 5 percent year on year, from Rs 61,237 crore in Q4FY24 to Rs 64,479 crore in Q4FY25.
The company’s net profit decreased by 1.2 percent on a quarter-on-quarter basis, from Rs. 12,444 crore in Q3FY25 to Rs. 12,293 crore in Q4FY25. Further, net profit plummeted by 2 percent year on year from Rs 12,502 crore in Q4FY24 to Rs 12,293 crore in Q4FY25.
The company posted a strong FY24-25 performance, with revenue surging 5 percent from Rs 2,40,893 crore to Rs 2,55,324 crore. Net profit jumped 6 percent, rising from Rs 46,099 crore to Rs 48,797 crore, reflecting robust growth and improved profitability over the previous financial year. TCS also announced a final dividend of Rs 30 per equity share for FY25. The total dividend declared for the last financial year stood at Rs 126.
Brokerage Views
Motilal Oswal flagged short-term uncertainty due to the BSNL drag and weak discretionary spending. While Q1 is expected to see a QoQ decline, FY26 EBIT margin is projected to rise to 25.3 percent through cost cuts. Despite macro risks, strong deal wins led the brokerage to maintain a ‘Buy’ with an 18 percent upside at Rs 3,850.
Deal Wins and TCV
The company reported a strong TCV of $10.2 billion for the quarter, led by $5.9 billion from North America. BFSI contributed $3.2 billion, and the consumer business $1.3 billion. Despite no mega deals, double-digit YoY TCV growth reflected broad-based deal momentum across markets.
Challenges and Headwinds
The management cited unresolved geopolitical tensions, trade wars, and uneven growth as key headwinds. BFSI faces pressure for operational efficiency amid modernization. Meanwhile, Communication & Media, Life Sciences, and Manufacturing saw declines, though stabilization and recovery are expected over the medium term.
Company Profile
Tata Consultancy Services Limited (TCS) is engaged in providing information technology (IT) services, consulting, and business solutions. It operates through Banking; Capital Markets; Consumer Goods and Distribution; Communications, Media, and Information Services; Education; Energy, Resources, and Utilities, etc
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
