TCS reported weaker-than-expected This autumn outcomes, with income and internet revenue falling in need of analyst projections. Nonetheless, the deal wins hit a document excessive.
Income for the March quarter stood at $7.4 billion, a modest 0.8% rise from $7.2 billion in Q3 and 5.3% YoY progress. That mentioned, deal wins surged to an all-time excessive of $12.2 billion, up from $10.2 billion within the earlier quarter.
TCS reported fixed forex progress of 4.2% for FY25. Internet revenue for the agency was $1.418 billion, a decline of two% YoY from $1.496 billion.
Working margin stood at 24.2%, whereas its internet margin was 19.0%. The annual internet revenue was $5.7 billion for the 12 months, and the whole income for TCS crossed $30 billion for FY25—a rise of 6%.
The corporate, nonetheless, said that exterior elements equivalent to commerce insurance policies and tariffs are disrupting its enterprise operations and decision-making.
“We had spoken concerning the bettering market sentiments and yearly indicators of discretionary spending revival in January. However as you realize, this was not sustained,” Okay Krithivasan, CEO and MD, mentioned throughout the earnings name. “As a consequence of discussions round tariffs, we’re observing delays in determination making.”
He additional added that the uncertainty in March resulted in venture delays, however it didn’t trigger any main venture cancellations. “We imagine that, over the following few months, this uncertainty ought to settle, and we might be again to enterprise.”
That is in step with the affect on world IT. In its newest earnings name reported final month, Accenture attributed the income slowdown to uncertainties in US authorities contracts. It raised considerations for Indian IT, even because the publicity to US authorities contracts was minimal.
Gartner Analyst, nonetheless, remained optimistic amid the gloom. “Regardless of dealing with challenges equivalent to world uncertainties, finances cuts, and robust competitors, TCS successfully managed its monetary state of affairs,” mentioned Biswajit Maity, senior principal analyst at Gartner. That mentioned, he additionally cautioned that the corporate ought to control its attrition charge. “TCS reported a 13.3% attrition charge, barely greater than the earlier quarter, and wishes to observe this to keep up service high quality.”
“We’re happy to cross the $30 billion in annual revenues and obtain a powerful order guide for the second consecutive quarter,” Krithivasan mentioned within the launch. “Our experience in AI and digital innovation, coupled with the unequalled information of buyer context and world scale, makes us the pillar of assist for our prospects on this setting of macroeconomic uncertainty.”
The corporate additionally declared a remaining dividend of ₹30 per fairness share for FY25, taking the whole dividend for the final monetary 12 months to ₹126 per share.
TCS’ workforce stood at 6,07,979 staff, a negligible improve from 6,07,354 staff within the final quarter, with an attrition charge of 13.3% yearly.
Milind Lakkad, chief HR officer, mentioned that the trainee onboarding plan in FY25 was 42,000, which was in accordance with the sooner anticipated plan. For FY26, he mentioned that the quantity could be greater.
“We don’t see any affect on hiring due to AI,” he mentioned when requested concerning the affect of AI upskilling for workers of TCS.
As of March 31, 2025, the corporate had filed a complete of 8,816 patent purposes, with 267 filed within the fourth quarter alone. Throughout the identical interval, it acquired 235 new patents, bringing the whole variety of granted patents to 4,820.
Experiences Sturdy Momentum in AI and Cloud Companies
Krithivasan revealed that TCS is investing in an agentic AI type, with over 150 options throughout finance and accounting, provide chain, sourcing and procurement, HR and buyer expertise to assist prospects within the journey in direction of autonomous world enterprise companies (GBS).
TCS noticed purchasers considerably scale their investments in AI and GenAI throughout FY25, driving robust progress throughout its GenAI and agentic AI companies and options.
One notable engagement was with a significant utility firm in North America, which chosen TCS to construct and practice AI fashions utilizing information from mild detection and ranging (LiDAR), satellite tv for pc imagery, climate patterns, vegetation traits, and wildfire incidents.
These fashions intention to enhance pre-trim inspections, trim prescriptions, budgeting, forecasting, and early threat prediction—serving to utilities and communities handle vegetation and cut back hazards.
TCS additionally reported continued quarter-on-quarter progress in its AI for enterprise engagements. For a number one world OTT and know-how firm, the agency developed a generative AI-based film script analyser that attracts insights from viewership information and content material, enabling a personalised, secure, and fascinating viewing expertise.
The corporate made vital progress in reimagining software program engineering with AI, with over one-third of shopper engagements now utilizing AI to speed up supply and improve high quality.
In a single main transformation, TCS is working with a world monetary companies agency emigrate greater than 50 million strains of COBOL code to Java utilizing a mix of GenAI and its proprietary TCS MasterCraft platform.
TCS additionally enhanced its WisdomNext 2.0 platform with agentic capabilities. The up to date platform now options sooner onboarding, centralised governance, stronger safety guardrails, and a wide selection of pluggable, industry-specific options to drive innovation.
Final Quarter
In its final Q3 FY25 earnings name, TCS reported that its purchasers are actively investing in generative AI and agentic AI. TCS is engaged on a venture with a shopper for drug discovery the place the client was capable of establish 1,300 molecules and additional filter them to 12 molecules.
Krithivasan additionally earlier mentioned that the momentum of generative AI is growing. Therefore, the corporate shouldn’t be revealing the particular revenues, citing that they’re tough to measure.
He had earlier identified that constructing LLMs has no enormous benefit as the price outweighs the profit. He added that since most organisations in India are system integrators, corporations should use merchandise as software program and be certain that purchasers obtain the advantages.
On the similar time, Krithivasan additionally agreed that constructing it for regional languages is smart for democratising the know-how.
The put up TCS Says AI Received’t Affect Hiring, Internet Revenue Drops 2% YoY in This autumn FY25 appeared first on Analytics India Journal.
