The company’s ability to secure a record-breaking total contract value (TCV) of $39.4 billion for FY24-25, coupled with its unwavering focus on artificial intelligence (AI), cloud, and digital engineering, underscores its role as a trusted partner for enterprises worldwide. This report delves into TCS’s financial and operational achievements for FY24-25 and the fourth quarter (Q4 FY24-25), offering a comprehensive analysis of its performance across revenue, profitability, industry verticals, geographic markets, and service lines.

TCS’s FY24-25 results reflect its strategic agility in navigating macroeconomic uncertainties while capitalizing on emerging opportunities in AI-driven transformation and regional market expansion. With a workforce of over 607,000 professionals across 55 countries, TCS has leveraged its global scale and deep domain expertise to deliver industry-leading margins and sustain long-term client relationships. The company’s commitment to innovation is evident in its 8,816 patent applications and enhanced platforms like WisdomNext™ 2.0 and TCS Crystallus™, which are redefining enterprise solutions. This report highlights TCS’s financial discipline, operational rigor, and forward-looking investments, providing stakeholders with a clear view of its sustained growth trajectory and competitive edge.

Management Commentary

K Krithivasan, Chief Executive Officer and Managing Director, said “We are pleased to cross the $30 Billion in annual revenues and achieve a strong order book for the second consecutive quarter. Our expertise in AI and Digital Innovation, coupled with the unmatched knowledge of customer context and global scale makes us the pillar of support for our customers in this environment of macroeconomic uncertainty. We remain committed to staying close to our customers and helping them achieve their core priorities.”

Samir Seksaria, Chief Financial Officer, said “In FY25, our disciplined execution and operational rigor stood out again, as we defended our industry-leading margins while continuing with our investments in talent and capability building. We delivered robust profitability and cash flows this quarter in a very challenging environment without compromising on the right investments in our people, innovation and infrastructure for long-term value creation.”

Milind Lakkad, Chief HR Officer, said “Our trainee onboarding in FY25 was 42,000 as planned. We won the Enterprise-Wide Top Employer Certification from the Top Employers Institute. This milestone builds on TCS’s achievements as a Global Top Employer for 2025, marking an unbroken record of receiving this distinction over a decade. We continue to enjoy the pride of place as the employer of choice, and the industry-best retention rate by prioritizing a culture of professional and personal growth, wellbeing, and purpose-driven engagement for our associates.”

1. Financial Performance Overview

Annual Financial Highlights (FY 2025)

• Revenue: ₹255,324 crore, reflecting a year-on-year (YoY) growth of 6.0% (4.2% in constant currency, CC).
• Operating Margin: 24.3%, demonstrating operational efficiency despite investments in talent and innovation.
• Net Margin: 19.0%, showcasing robust profitability.
• Net Income: ₹48,553 crore, up from ₹45,908 crore in FY24 (reported).
• Earnings Per Share (EPS): ₹134.19, a YoY increase from ₹125.88 (reported FY24).
• Free Cash Flow: ₹46,449 crore, supporting shareholder payouts and reinvestment.
• Shareholder Payout: ₹44,962 crore in dividends, reinforcing TCS’s commitment to shareholders.
• Total Contract Value (TCV): $39.4 billion for FY25, indicating strong future revenue potential.

Quarterly Financial Highlights (Q4 FY 2025)

• Revenue: ₹64,479 crore, up 5.3% YoY (2.5% in CC).
• Operating Margin: 24.2%, slightly down from FY24 Q4’s 26.0% due to continued investments.
• Net Margin: 19.0%, consistent with annual performance.
• Net Income: ₹12,224 crore, marginally down from ₹12,434 crore in Q4 FY24.
• Earnings Per Share (EPS): ₹33.79, compared to ₹34.37 in Q4 FY24.
• Operating Cash Flow: 125.1% of net income, reflecting strong cash conversion.
• TCV: Record $12.2 billion, with a book-to-bill ratio of 1.6, signalling robust demand.
• Proposed Final Dividend: ₹30 per share, subject to approval at the Annual General Meeting.

Balance Sheet Snapshot - Consolidated (As of March 31, 2025)

• Total Assets: ₹159,629 crore, up from ₹146,449 crore in FY24.
• Shareholders’ Funds: ₹94,756 crore, reflecting a stronger equity base.
• Accounts Receivable: ₹50,233 crore, up from ₹44,561 crore, indicating higher billings.
• Invested Funds: ₹47,222 crore, marginally up from ₹46,963 crore.
• Current Liabilities: ₹53,001 crore, reflecting increased operational scale.
• Property and Equipment: ₹12,524 crore, up from ₹10,940 crore, showing infrastructure investment.

2. Segment Performance

2.1 Growth by Industry (YoY CC Growth)

Annual (FY 2025)

• Regional Markets & Others: +37.2%, driven by strong demand in India (+62.6%).
• Energy, Resources & Utilities (ERU): +5.1%, benefiting from sustainability and digital transformation initiatives.
• Manufacturing: +2.9%, supported by IoT and smart manufacturing solutions.
• Banking, Financial Services, and Insurance (BFSI): +0.7%, modest growth due to cautious spending.
• Consumer Business: +0.3%, stable performance.
• Technology & Services: -1.3%, impacted by selective tech spending.
• Life Sciences & Healthcare: -1.6%, reflecting project completions.
• Communication & Media: -9.5%, affected by reduced discretionary spending.

Quarterly (Q4 FY 2025)

• Regional Markets & Others: +22.5%, led by India and MEA.
• Energy, Resources & Utilities: +4.6%, consistent with annual trends.
• BFSI: +2.5%, showing sequential improvement.
• Technology & Services: +1.1%, marginal recovery.
• Consumer Business: -0.2%, nearly flat.
• Manufacturing: -2.9%, impacted by seasonal factors.
• Life Sciences & Healthcare: -5.6%, temporary slowdown.
• Communication & Media: -9.8%, continued softness.

2.2 Growth by Geography (YoY CC Growth)

Annual (FY 2025)

• India: +62.6%, standout performer due to government and enterprise digitization.
• Middle East & Africa (MEA): +11.2%, driven by infrastructure projects.
• Asia Pacific: +6.8%, steady demand for cloud and AI solutions.
• Latin America: +6.0%, growing enterprise adoption.
• UK: +4.0%, supported by BFSI and public sector deals.
• Continental Europe: +0.7%, cautious spending environment.
• North America: -1.8%, impacted by macroeconomic uncertainty.

Quarterly (Q4 FY 2025)

• MEA: +13.2%, strongest quarterly performer.
• Asia Pacific: +6.4%, consistent growth.
• Latin America: +4.3%, stable demand.
• India: +3.0%, moderating from annual highs.
• Continental Europe: +1.4%, slight uptick.
• UK: +1.2%, steady performance.
• North America: -1.9%, continued softness.

3. Service Line Performance

TCS’s service lines demonstrated resilience, with growth driven by digital and AI-focused offerings:

• AI.Cloud: Significant traction in generative AI (GenAI) and agentic AI solutions. Notable engagements include building AI models for a North American utility and a GenAI-based movie script analyzer for a global OTT platform. Over one-third of client engagements now leverage AI/GenAI for accelerated outcomes.
• IoT & Digital Engineering: Strong growth in smart manufacturing, connected IoT services, and energy management. North America, UK, and Latin America led market demand.
• Enterprise Solutions: Growth in BFSI and technology sectors, fueled by AI-driven transformation using TCS Crystallus™ for ERP and low/no-code migrations.
• Cybersecurity: High demand for managed detection and response (MDR), identity management, and GenAI for cybersecurity, particularly in life sciences, healthcare, and communications.
• TCS Interactive: Growth in digital interactive services, driven by AI-powered marketing optimization and customer experience (CX) enhancements.
• Cognitive Business Operations: Strong deal wins in finance, HR, and CX, with investments in an agentic AI farm for autonomous global business services.

4. Operational Highlights

4.1 Workforce and Talent Development

• Headcount: 607,979 employees, with 35.2% women and 152 nationalities.
• Attrition: IT services attrition at 13.3% (last twelve months), industry-leading retention.
• Learning and Development: 56 million learning hours and 5.2 million competencies acquired.
• Trainee Onboarding: 42,000 trainees onboarded in FY25 as planned.
• Awards: Recognized as a Global Top Employer 2025 and received Enterprise-Wide Top Employer Certification by the Top Employers Institute.

4.2 Client Metrics

• High-Value Clients: 64 clients in the $100M+ revenue band, up by 2 YoY, reflecting deeper client relationships.
• Key Partnerships:
  • Strategic partnerships with Google Cloud, NVIDIA (Rising Star Partner of the Year), and Microsoft (Advanced Security Specialization).
  • Modernization deals with Muscat Clearing and Depository, UPM, Air New Zealand, and Northern Trust, among others.
  • Extended collaborations with DNB Bank, Olympus, and Avianca for digital transformation and AI adoption.

4.3 Innovation and Intellectual Property

• Patents: Applied for 8,816 patents (267 in Q4), with 4,820 granted (235 in Q4).
• Platforms: Enhanced WisdomNext™ 2.0 with agentic AI capabilities and scaled TCS Crystallus™, ignio™, and Cognix™ for enterprise transformation.

5. Market and Analyst Recognition

• Brand Value: Ranked #2 global IT services brand by Brand Finance 2025, with a valuation of $21.3 billion.
• Analyst Rankings: Leader in 25 competitive assessments, with #1 rankings in:
  • Everest PEAK Matrix for Life and Annuities Insurance BPS, Custom Application Development, and Sustainable Engineering Services.
  • NelsonHall NEAT for Cognitive & Self-Healing IT Infrastructure Management.
  • Gartner Magic Quadrant for Outsourced Digital Workplace Services.
• Awards: IoT Breakthrough Award for Rental Telematics 4.0, SSON Impact Awards for Finance Transformation, and Liferay Partner of the Year for APAC.

6. Strategic Insights and Outlook

• AI and Digital Leadership: TCS’s expertise in AI, GenAI, and cloud solutions positions it as a preferred partner for enterprises navigating macroeconomic uncertainty. The company’s focus on AI-driven transformation (e.g., 50 million lines of COBOL code migration for a financial services client) underscores its innovation edge.
• Strong Order Book: TCV of $39.4 billion for FY25 and $12.2 billion for Q4 reflects confidence in long-term growth, driven by vendor consolidation, technology modernization, and CX transformation.
• Operational Discipline: Maintained industry-leading margins (24.3% operating margin) while investing in talent, innovation, and infrastructure.
• Global Scale: With 607,979 employees across 55 countries and 180 service delivery centers, TCS leverages its scale to deliver tailored solutions worldwide.
• Challenges: Softness in North America (-1.8% YoY) and select verticals like communication & media (-9.5%) highlights the need for diversified growth strategies.

7. Conclusion

TCS delivered a good performance in FY 2025, crossing the $30 billion revenue milestone and achieving a record TCV of $39.4 billion. Despite macroeconomic headwinds, the company’s focus on AI, cloud, and digital transformation drove growth, particularly in regional markets & others (+37.2%) and emerging verticals like energy (+5.1%).

Quarterly: Q4 FY25 saw steady revenue growth (+5.3% YoY) and a strong order book ($12.2 billion), reinforcing TCS’s resilience. With industry-leading margins, a diverse workforce, and a commitment to innovation (8,816 patent applications), TCS is well-positioned to sustain its leadership in the global IT services market.