Early signs of recovery haven't sustained due to tariffs, says TCS CEO K Krithivasan

Nonetheless, he added that "Since yesterday's announcement (delay of 90 days in tariff by US), we need to see if the uncertainty will carry.” Moreover, the impact of uncertainties in the US majorly impacts consumer and automobile verticals.

Brokerage Centrum Broking's analysts Piyush Pandey and Vagish Nandal said in a research note that decision cycles are lengthening on geopolitics, but no major deal cancellations were reported.

During the post-earnings press conference, TCS CEO K Krithivasan said the early signs of recovery in discretionary spending were not sustained due to the US tariffs.

“What we are seeing in the market, I would expect there would be delays in decision-making on discretionary spend if this uncertainty continues,” he added.

Earlier, analysts at Nuvama said they would watch out for an outlook on the US macroeconomic environment amid the tariff uncertainty and margin recovery trajectory.

Nevertheless, Krithivasan said the IT major expects calendar year 2025 to be better than 2024. "FY26 will be better than FY25, though there will be some short-term uncertainties," he added.

For Q4, the Mumbai-headquartered company's consolidated net profit fell nearly 2 percent year-on-year to Rs 12,224 crore, amid the ongoing macroeconomic headwinds for the IT sector. India’s largest IT services company had reported a consolidated net profit of Rs 12,434 crore in the corresponding quarter last year.

TCS’ consolidated revenue from operations rose 5.3 percent year-on-year to Rs 64,479 crore in quarter ending March, as against Rs 61,237 crore in the same quarter a year ago.

The IT behemoth’s earnings missed expectations. A Moneycontrol poll of four brokerages pegged TCS’ January-March net profit at Rs 12,554 crore, and revenue at Rs 64,840 crore.

Shares of the company closed at Rs 3,246.60 on April 9, down 1.41 percent on the National Stock Exchange.