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

Executive summary

• FY25 revenue surpassed $30 billion (₹2,55,324 crore), growing 4.2% in constant currency and 3.8% in USD, with industry-leading margins and strong return ratios.

• Q4 TCV reached a record $12.2 billion; FY25 TCV was $39.4 billion, with North America and BFSI segments as key contributors.

• Management remains cautiously optimistic for FY26, citing strong deal pipelines and recent TCV momentum despite macroeconomic uncertainty.

• Audited consolidated and standalone financial results for FY25 were approved by the Board with unmodified auditor opinions.

• Final dividend of ₹30 per share recommended, total FY dividend at ₹126 per share.

Financial highlights

• FY25 revenue was $30.2 billion (₹2,55,324 crore), up 4.2% in constant currency, 3.8% in USD, and 6% in INR.

• Operating margin for FY25 was 24.3%, net margin 19.0%; Q4 operating margin 24.2%.

• Net profit (consolidated) for FY25 was ₹48,797 crore; EPS at ₹134.19.

• Q4 revenue grew 2.5% YoY in constant currency to INR 64,479 crore ($7.47 billion).

• Free cash flow for FY25 was INR 464,490 Mn; total cash and investments at year-end INR 472,220 Mn.

Outlook and guidance

• Management expects FY26 to be better than FY25, driven by strong TCV and pipeline, assuming macro uncertainty is short-lived.

• No major change in deal mix between renewals and new deals; pipeline remains strong and increasing.

• Margins expected to improve if broad-based revenue growth continues; headwinds include potential lower operating leverage and less currency benefit.

• Order book TCV for FY25 at $39.4 billion, indicating robust demand pipeline.

• Board recommended a final dividend of ₹30 per share, with total equity dividend for FY25 at ₹126 per share.