Tata Consultancy Services (TCS) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue reached INR 64,259 crore ($7.67 billion), up 7.6% YoY (5.5% in constant currency), led by strong growth in Energy, Resources & Utilities (+7.0%), Manufacturing (+5.3%), and India market.

• Operating margin stood at 24.1%, net margin at 18.5%, and EPS grew to INR 32.92.

• Order book TCV was $8.6 billion, with North America contributing $4.2 billion; deal momentum remained strong.

• Workforce grew by 5,726 in Q2, with total headcount at 612,724 and LTM attrition at 12.3%.

• GenAI engagements surged, with 86 projects in production and over 600 active engagements.

Financial highlights

• Net income for Q2 FY25 was INR 119,090 Mn (₹11,909 crore), up from INR 113,420 Mn (₹11,342 crore) YoY.

• Free cash flow was $1.3 billion (INR 111,260 Mn); net cash from operations was INR 11,932 crore, 100.2% of net income.

• Interim dividend of INR 10.00 per share declared.

• Total cash and investments at period end were INR 539,660 Mn.

• Operating income for Q2 FY25 was INR 154,650 Mn, up from INR 144,830 Mn YoY.

Outlook and guidance

• Pipeline is at an all-time high across geographies and industries; TCV is within the $7–9 billion comfort range.

• Q3 expected to be seasonally weak, but recovery anticipated from Q4 as client-specific headwinds are seen as temporary.

• Margins are expected to improve as large transformation projects taper and capacity investments normalize.

• Long-term margin aspiration remains at 26–30%.

• Management remains focused on sustainable growth and disciplined execution despite macroeconomic caution.