Tata Consultancy Services (TCS) Q4 24/25 (Media) earnings summary

Executive summary

• Q4 FY25 revenue exceeded $30 billion, with 2.5% year-on-year growth in constant currency and rupee revenue of ₹64,479 crore, up 5.3% YoY; FY25 revenue totaled ₹2,55,324 crore, up 6% in rupee terms and 3.8% in USD.

• Operating margin for Q4 was 24.2%, net margin at 19%; full-year operating margin was 24.3% with net profit of ₹48,797 crore.

• Q4 order book TCV was $12.2 billion, the second highest ever, with FY25 TCV at $39.4 billion; strong client metrics with $100M+ clients rising to 64 and $1M+ clients to 1,332.

• Board recommended a final dividend of ₹30 per share, total dividend for FY25 at ₹126 per share, and completed a significant real estate acquisition.

• Closing headcount at 607,979, with IT services attrition at 13.3% and women comprising 35.2% of the workforce.

Financial highlights

• Q4 operating profit was ₹15,601 crore; Q4 EPS was ₹33.79; FY25 EPS at ₹134.19.

• Cash from operations in Q4 was ₹15,294 crore (125.1% of net profit); FY25 cash from operations was ₹51,426 crore (105.9% of net profit).

• FY25 free cash flow was ₹464,490 Mn, up 4.9%; total cash and investments at ₹472,220 Mn as of March 31, 2025.

• Total dividend for FY25 was ₹126 per share; buyback of shares in FY25 amounted to INR 210,050 Mn.

• Net cash from operating activities for FY25 was ₹48,908 crore; net cash used in financing activities was ₹47,438 crore.

Outlook and guidance

• Management expects FY26 to be better than FY25, based on a robust order book and deal pipeline, despite short-term uncertainties.

• Margin guidance remains at 26%-28%, with operational levers in place to support improvement.

• Board recommended a final dividend of ₹30 per share, reflecting continued confidence in cash flows.

• Order book TCV for FY25 at $39.4 Bn, with North America contributing $21.6 Bn and BFSI $12.8 Bn.

• Client metrics improved: $100M+ clients up by 2, $10M+ up by 6, $1M+ up by 38 YoY.