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Ashok Leyland Ltd.

Automobiles-Trucks / Lcv

Tata Consultancy Services Ltd

IT-Software

Head Quarters:Bengaluru, Karnataka
Managing Director: Mr. K. Krithivasan

Company Overview

Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS) is a digital transformation and technology partner of choice for industry-leading organizations worldwide. Since its inception in 1968, TCS has upheld the highest standards of innovation, engineering excellence and customer service.

Rooted in the heritage of the Tata Group, TCS is focused on creating long term value for its clients, its investors, its employees, and the community at large. With a highly skilled workforce of over 607,979 consultants in 55 countries and 180 service delivery center's across the world, the company has been recognized as a top employer in six continents. With the ability to rapidly apply and scale new technologies, the company has built long term partnerships with its clients; helping them emerge as perpetually adaptive enterprises. Many of these relationships have endured into decades and navigated every technology cycle, from mainframes in the 1970s to Artificial Intelligence today.

TCS sponsors 14 of the worlds most prestigious marathons and endurance events, including the TCS New York City Marathon, TCS London Marathon and TCS Sydney Marathon with a focus on promoting health, sustainability, and community empowerment. TCS generated consolidated revenues of US $30 billion in the fiscal year ended March 31, 2025.

Head Quarters: Bengaluru, Karnataka

Managing Director: Mr. K. Krithivasan

Financial Highlights

  1. Quarterly Performance:

    INR Crores
    Metric Mar 25 Dec 24 Mar 24 YoY % QoQ %
    Revenue 65,507 65,216 62,394 ▲ 5% ▲ 0%
    Operating Profit 17,781 18,043 18,095 ▲ 1% ▼ 1%
    Net Profit 12,293 12,444 12,502 ▲ 0% ▼ 1%

    Insights:

    1. Achieved $30.2 billion annual revenue (3.8% YoY growth), with Q4 revenue growing 2.5% YoY in constant currency and 5.3% in INR terms.
    2. Reported record $12.2 billion in total contract value (TCV) for Q4, including strong performances in North America ($6.8 billion TCV) and BFSI sector ($4 billion TCV).
    3. Operating margin declined to 24.2% (down 30 bps QoQ) due to promotions and strategic investments, while maintaining full-year margin at 24.3%.
    4. Expanded AI adoption with one-third of client engagements now using AI/GenAI solutions, led by platforms like ignio™ and TCS BANCS™ securing 30+ new deals.
    5. Maintained stable workforce of 607,979 employees with 13.3% attrition, while declaring a final dividend of ₹30 per share (total ₹126/share for FY25).

  2. Segment Wise Revenue

  3. Geography Revenue

Key Ratios

Ratio Q4 FY25 Industry Benchmark Remarks
EPS 134 100-120 ✔️ Above average – Indicates strong earnings per share and solid profitability.
P/E Ratio 26.10 25-30 ✔️ Fairly valued – Valuation is in line with industry norms.
Return on Assets (RoA) 32.1% 20-25% ✔️ Excellent – Highly efficient asset utilization.
Return on Equity (RoE) 52.40% 33-40% ✔️ Exceptional – Strong returns to shareholders.
DE Ratio 0.10% 0.05-0.10 ✔️ Well-managed – Maintains a conservative capital structure.
OPM (%) 26.40% 24-27% ✔️ Strong – Margin level reflects healthy operational efficiency.

Management Updates

  • 🤖 Over one-third of client engagements are now actively using AI/GenAI, shifting from experimental pilots to production-level applications like code automation and contract analysis.

  • 💳 The BFSI sector is driving growth with $4 billion in TCV from banking modernization, strong interest in cloud migration and compliance tech, though the US insurance segment faces delayed decision-making.

  • 🛍️ The consumer sector is prioritizing efficiency over expansion—retail and CPG firms are cutting discretionary tech spending, while investing in AI-powered automation and inventory optimization.

  • 🏭 The manufacturing sector is tackling EV transition costs in automotive, supply chain constraints in aerospace, and focusing on operational resilience and smart manufacturing.

  • 🌍 Regional performance is mixed: India up 33% due to government-led digital projects, North America down 1.9% amid macroeconomic uncertainty, and Europe shows modest growth with digital initiatives.

Management Guidance

Key Focus Area Guidance/Target Current Status Timeline
Revenue Growth 4-6% (CC) 4.2% (FY25) FY26
Operating Margin 26% 24.3% Medium-term
AI Adoption 50% engagements 35% 12-18 months
Cloud Migration 80% workloads 65% 24 months
Employee Utilization 88-90% 85% FY26

Management Tracker

Key Metric FY25 Guidance FY25 Actual Achieved?
Revenue Growth (CC) 4-6% 4.2% ✅ Within Range
Operating Margin 24-26% 24.3% ✅ Achieved
$30B Revenue Target $30.2B ✅ Exceeded
TCV (Q4) Strong Pipeline $12.2B ✅ Record High
AI Adoption Expand Usage 35% of Engagements 🔼 Progressing
Employee Utilization 85-88% 85% ⚠️ Lower End

Shareholding Pattern

Category Mar 2024 Dec 2024 Mar 2025 YoY Change QoQ Change
Promoters 71.77% 71.77% 71.77% — —
FIIs 12.70% 12.68% 12.04% ▼0.66% ▼0.64%
DIIs 10.61% 10.86% 11.49% ▲0.88% ▲0.63%
Government 0.06% 0.06% 0.06% — —
Public 4.86% 4.63% 4.63% ▼0.23% —

Red Flags

Red Flag Parameter Status Severity
Management Changes No Changes Low
Auditor Exit No Changes Low
Credit Rating No Changes Low
Share Holding Pattern No Major Changes Low
Liquidity Adequate Low

Conclusion

TCS met most FY25 targets, achieving $30.2B revenue (4.2% CC growth) and record $12.2B TCV. Operating margin reached 24.3% within guidance. AI adoption progressed to 35% engagements, while utilization hit 85% (lower guidance range). The company demonstrated resilience in challenging markets, with strong performance in BFSI and cloud migration, positioning well for FY26 growth.

Key Positive

  • Revenue Milestone Achieved - Crossed $30B annual revenue ($30.2B) with 4.2% CC growth, meeting guidance
  • Record Deal Wins - Q4 TCV of $12.2B (all-time high) showing strong demand momentum
  • Margin Resilience - Maintained 24.3% operating margin despite macro pressures and investments

Key Negative

  • Utilization Lag - Employee utilization at 85% (lower end of 85-88% target)
  • Growth Moderating - CC growth of 4.2% at lower end of 4-6% guidance range
  • AI Adoption Pace - Only 35% engagements using AI vs. aspirational 50%+ target
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