TCS Q4 Results 2025 LIVE: Early signs of recovery haven't sustained due to tariffs, says CEO Krithivasan

When asked if changes to US H1B visa rules will impact the company, TCS Chief HR Officer Milind Lakkad said that the IT firm has a global workforce. Hence, any such uncertainties related to US visa rules won't majorly impact it.

TCS CEO K Krithivasan said the IT company's order book could have been better if the global uncertainties following US President Donald Trump's tariffs didn't persist. Notably, the company has a major market share in North America.

TCS CEO K Krithivasan said no region would want to continue with such global uncertainties for a very long period of time. "I believe some certainty will emerge in the near time. We will know where this rare trade policy regime takes us forward," he said while speaking about US President Donald Trump's tariffs.

"We continue to hire from campus, but this could be slightly higher this year than what we added last year," said Chief HR Officer Milind Lakkad. He also added, "Fresher hiring will be similar or may be higher in FY26. Wage hikes will be reviewed based on the business environment."

TCS CFO Samir Seksaria said the initial contract of BSNL deal is likely to be successfully completed in the first quarter of the ongoing financial year.

TCS CEO K Krithivasan said the company cannot just depend on local talent for newer projects. The company's Chief HR Officer Lakkad meanwhile said, "AI for Business is a new opportunity…We will need more people for that." He added that the impact of AI on hiring is too early to talk about.

TCS management during its press conference spoke about wage hikes. "We will decide on the wage hike later due to the uncertain business environment," said Chief HR Officer Milind Lakkad. He however didn't define the quantum of wage hikes.

TCS CEO K Krithivasan said the impact of uncertainties in the US majorly impacts consumer, auto verticals. "Since yesterday's announcement (delay of 90 days in tariff by US), we need to see if the uncertainty will carry," he said.

TCS CFO Samir Seksaria during the press conference said TCS was the only company that gave full cycle of increments from a Q4 to Q4 margin perspective. The company's Chief HR Officer Milind Lakkad meanwhile said, "We have added 42,000 trainees in FY25. Fresher hiring will be similar or may be higher in FY26. Wage hikes will be reviewed based on the business environment."

TCS CEO K Krithivasan said the IT major expects calendar year 2025 to be better that CY2024. "FY26 will be better than FY25, though there will be some short term uncertainties," he said. "In March there were uncertainties, including some in deal closures and delays in decision making. We should be back in the next few months," he added.

TCS CEO K Krithivasan said most major markets and industry verticals grew for the IT major. "Can't call out extent of BSNL deal here," he added.

During the post-earnings press conference, TCS CEO K Krithivasan said the early signs of recovery in discretionary spending didn’t sustain due to the rise in US tariffs.

The company's North American constant currency (CC) declined nearly 2 percent YoY in Q4 FY25. Its market share in North America dropped from 50 percent in Q4 FY24 to 48.2 percent in Q4 FY25. Its market share in India however increased from 6.7 percent to 8.4 percent during the reported quarter.

K Krithivasan, Chief Executive Officer and Managing Director, said “We are pleased to cross $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.”

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."

TCS reported revenue from operations at Rs 64,479 crore, marking a rose of over 5 percent YoY. This is more or less at par with the Rs 64,840-crore average estimate of four brokerages polled by MC.

TCS reported a net profit of Rs 12,224 crore in Q4 FY25, marking a fall of nearly 2 percent YoY. Notably, this is below the average estimate of four brokerages polled by MC. Net profit was expected to inch up 1.4 percent to Rs 12,554 crore

EBIT margin of TCS fell below expectations at 24.2%, marking a fall of 30 bps sequentially. TCV meanwhile stood at $12.2 billion in Q4, beating estimate. For the entire FY25, TCV performance stood at $39.4 billion.

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."

While announcing its results for the January-March quarter of FY25, TCS said that it crossed $30 billion revenue milestone with strong growth.

The IT company has announced a final dividend of Rs 30 per share for the financial year 2025. "The Directors have recommended a Final Dividend of INR 30 per Equity Share of INR 1 each of the Company which shall be paid/dispatched on the fifth day from the conclusion of the 30th Annual General Meeting, subject to approval of the shareholders of the Company," the company said in its exchange filing.

• Net profit falls 1.69 percent YoY to Rs 12,224 crore in Q4.
• Revenue from operations up 5.29 percent YoY to Rs 64,479 crore.
• Total expenses rise to Rs 49,105 crore.

Jefferies recently downgraded its rating for Tata Consultancy Services (TCS) from 'Buy' to 'Hold' and cut the target from Rs 4,530 per share to Rs 3,300 per share. The international brokerage had a cautious stance over the IT sector, and cut its target prices for majority of the stocks.

TCS Q4 Results 2025 Live: Where to watch TCS press conference today?

TCS took to X to share the links where investors can watch its FY 2024-25 Financial Results Press Conference LIVE today.

TCS traditionally releases its quarterly results in the post markets hours of the day, i.e after 3.30 pm. However, it is important to note that markets are closed today on the occasion of Mahavir Jayanti. In an exchange filing released earlier, TCS had said that its earnings conference call for Q4 will begin at 7 pm.

TCS had announced its Q3 results in the post-market hours of January 9. The shares strongly gained when markets reopened the next day. The IT stock jumped over 4 percent to close at Rs 4,116 per share on January 10. The shares of the company will be in focus tomorrow when the market reopens after Q4 result announcement.

TCS on January 9 had reported a consolidated net profit of Rs 12,380 crore in the quarter ended December 31, 2024. This marked a rise of 12% when compared to the Rs 11,058-crore net profit reported in the year-ago period, beating estimates marginally. The company's consolidated revenue from operations rose 6% to Rs 63,973 crore in Q3FY25 from Rs 60,583 crore in Q3FY24, missing estimates.

TCS had declared a third interim dividend of Rs 10 and a special dividend of Rs 66 per equity share of Re 1 each of the company in January. The record date for the dividend was set at January 17 and payment date was February 3, as per an exchange filing.

Analysts at Nuvama expect operating margins to remain flat QoQ, expecting "BSNL tailwinds to come with a lag". Last quarter, TCS' margin stood at 24.5 percent.

"We will watch out for outlook on US macro amid the tariff uncertainty and margin recovery trajectory," Nuvama's said in a note.

According to Centrum, the ramp down of BSNL deal, with cross currency headwind of around 40 basis points (bps) will bring down revenue growth by 0.2 percent sequentially.

Macroeconomic triggers driven by IT spending cut by the US government’s department of government efficiency (DOGE), AI disruption and demand uncertainties have haunted IT services companies hoping for a growth revival in FY26.

“We forecast flat revenues in constant currency (CC) for the international business and $30 million decline in BSNL revenues. The net result is 0.3 percent decline in revenues in CC. The benefit of rupee depreciation will be neutralised by promotions and investments in business, resulting in disappointing margin performance,” analysts at Kotak Institutional Equities said in a note.

• Flat International Revenue: Analysts forecast flat constant currency revenues for international markets, alongside a ~$30 million decline in BSNL revenue, weighing on overall performance.
• Limited Margin Expansion: Rupee depreciation is unlikely to materially improve margins, as internal cost pressures from talent-related expenses continue.
• Deal Momentum: Deal wins are expected to remain steady between $10 billion and 11 billion. However, large deal closures are likely to be subdued, reflecting caution among global enterprises—especially in discretionary and digital transformation projects.

Key monitorables this quarter include CY25 client budgets, pricing trends, and any project delays or recovery signs. Investors will also track discretionary spend recovery beyond BFSI and the impact of GenAI-led automation on pricing and volumes.

Brokerages expect a muted quarter, with a sequential revenue decline anticipated, primarily due to seasonal factors such as fewer billing days, softening demand, and project delays.

According to an average of four brokerage estimates polled by Moneycontrol, TCS is likely to report a modest 5 percent year-on-year rise in revenue to Rs 64,840 crore, while net profit is expected to inch up 1.4 percent to Rs 12,554 crore. EBITDA is projected at Rs 17,154 crore.

In constant currency (CC) terms, revenue is expected to decline quarter-on-quarter, primarily due to a reduction in BSNL-related revenues. While the BFSI (Banking, Financial Services and Insurance) vertical is expected to drive growth, segments such as manufacturing, retail, and healthcare are likely to remain subdued.

Margins may see only a small improvement of 30 basis points quarter-on-quarter, as talent investments, re-skilling efforts, and employee promotions offset benefits from operational efficiency and rupee depreciation. (Read more)

TCS shares closed over 1.6 percent lower on Wednesday at Rs 3,239 per share on the NSE. The country's largest software services exporter is set to announce its fourth quarter results for the financial year ending March 31, 2025.