TCS Q4 results: Profit drops 2% to Rs 12,224 cr; Rs 30 dividend announced; key highlights

Tata Consultancy Services Ltd (TCS), India's largest IT exporter, on Thursday reported a 1.68 per cent year-on-year (YoY) drop in net profit at Rs 12,224 crore for the March quarter compared with Rs 12,434 crore in the same quarter last year. Analysts were expecting TCS to report a flattish bottom line growth.

The K Krithivasan-led IT form said its consolidated sales for the quarter rose 5.29 per cent YoY to Rs 64,479 crore from Rs 61,237 crore in the same quarter last year. This is in line with 5-6 per cent rise in sales that anlaysts were expecting earlier. Revenue in constant currency (CC) terms stood at 2.5 per cent, the IT firm told stock exchanges.

Operating Margin came in at 24.3 per cent, while net margin came in at 19 per cent. TCS won orders worth $12.20 billion in the March quarter, with a book-to-bill ratio of 1.6 times. This was against analyst expectations of $10-11 billion. For the year, deal wins stood at $39.40 billion. 

The Q4 growth was led by Energy, Resources and Utilities (up 5.1 per cent) and Manufacturing (up 2.9 per cent).

The IT major proposed a final dividend of Rs 30 per share. The IT major would be now hosting a press conference at 5:30 pm and conference call with stock analysts at 7 pm. 

Management commentary

K Krithivasan, Chief Executive Officer and Managing Director, said his IT firm crossed the $30 billion in annual revenues mark and achieved 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,” he said.

Samir Seksaria, Chief Financial Officer, said his company's disciplined execution and operational rigor stood out in FY25, as TCS defended industry-leading margins while continuing with 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,” he said.

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 dividend history

With the fresh dividend, TCS' FY25  shareholder payout stood at Rs 44,962 crore in the form of dividends. The TCS board declared a dividend of Rs 10 per share and a special dividend of Rs 66 in the December quarter. The software exporter had earlier declared Rs 10 each dividends in Q1 and Q2.

The software announced a total dividend of Rs 73 per share in FY24, amounting to Rs 16,290.

Tariffs, US slowdown: Why they matter?
The prevailing tariff war is likely to hit the US economic growth in quarters to come. BNP Paribas analyst Kumar Rakesh said as tariffs come into effect, CPG & Retail are the first verticals to see the impact. The uncertainty created by higher tariff rates and counter tariffs could also  impact the manufacturing and logistics verticals of Indian IT companies.

Indian IT Services industry’s revenue growth has a +0.53 correlation with US real GDP growth since 1992.  "Our analysis of the last four downcycles in the US and its impact on Indian IT Services  export revenue growth suggest a 1.5 percentage points slowdown in US real GDP growth would impact Indian IT services revenue growth by 5.1 percentage points. This would imply FY26E Indian IT Services USD revenue will decline by 0.4 per cent YoY," the BNP Paribas analyst said. 

"A flattish YoY revenue growth for the industry we believe is a reasonable worst-case scenario, as a starting point for analysis. We do note that Indian IT Services industry revenue has never grown at a  pace lower than the US real GDP growth and has never seen a YoY decline, at least since 1992," Kumar said.