TCS Net Profit Dips 1.68% To Rs 12,224 Cr During Q4

We are confident that FY26 will be a better year than FY25 in terms of revenue growth. This is on the back of our strong deal pipeline as we enter the new fiscal year -- K Krithivasan, CEO, TCS

Bengaluru: Tata Consultancy Services (TCS), India’s largest IT services firm, on Thursday posted largely inline fourth quarter (Q4FY25) numbers with a strong deal pipeline. However, the revenue impact of BSNL deal was visible as the projects came to the far end of implementation. Despite the global macroeconomic uncertainty owing to Trump tariffs, the Tata group company expects FY26 to be better than FY25 on the back of its strong deal pipeline and rising demand for its AI-powered service offerings.

For the March quarter, TCS posted a net profit of Rs12,224 crore, a 1.7 per cent year-on-year decline as compared to the same period last fiscal. Revenue from operations, however, rose 5.3 per cent to Rs 64,479 crore YoY basis. In dollar term, revenue stood at $7.47 billion, an increase of 2.5 per cent YoY in constant currency term.

Deal pipeline during the fourth quarter was at a record $12.2 billion with total TCV (total contract value) for the whole FY25 fiscal coming to $39.4 billion by the end of March quarter.

For FY25, revenue of the Mumbai-headquartered firm crossed $30 billion to reach $30.18 billion. This was an increase of 4.2 per cent in constant currency term YoY basis. “We are confident that FY26 will be a better year than FY25 in terms of revenue growth. This is on the back of our strong deal pipeline as we enter the new fiscal year,” K Krithivasan, CEO of TCS said in the post results press conference.

On the uncertainty arising due to imposition of tariffs by the US on trading partners, he said the company has seen some slowdown and deferrals of projects in the last one month.

“We feel that this uncertainty will be short-lived and enterprises will spend on technology which is overdue for some time now,” Krithivasan said adding that the company has not seen any panic among clients due to tariff-related developments.

The company reported an operating margin of 24.2 per cent, a fall of 30 basis points sequentially. For FY26, the company expects its margin to be in the range of 26-28 per cent.

On key verticals, the company said that BFSI vertical in North America continued to perform strongly. It also informed that high demand for AI-powered solutions was driving large deals for the company.

During the fourth quarter, TCS’ headcount increased by 625 to reach 607,979 employees by the end of March quarter. In FY25, total headcount of the IT major increased by 6,433 people.

“We will hire slightly higher number of freshers (from campuses) in FY26 as compared to FY25. The hiring number each quarter will depend on the demand environment,” Chief Human Resources Officer of TCS, Milind Lakkad. The company onboarded 42,000 freshers in FY25.