Athira Sethu
Kochi, 14 July 2025
Tata Consultancy Services (TCS), India’s largest IT firm, recently reported its financial data for the April-June quarter of 2025. Its results disappointed the street. The following are the key points to note from its report:
1. Revenue and Profit Growth Was Flat
TCS’s overall revenue remained nearly unchanged from the last quarter, at approximately 64,628 crore rupees. Its profit also remained constant at around 12,250 crore rupees. This indicates that the company did not experience significant growth during this time. The figures indicate that TCS is struggling somewhat but retaining position otherwise.
2. BSNL Project Impact
One large reason for the sluggish growth is the completion of a big project with BSNL, a huge telecom firm in India. Because this project is coming to an end, TCS is making less money from it than it used to. But growth in some of the other international markets is offsetting the company’s revenues.
3. Deal Wins Are Strong
TCS acquired new contracts worth $12.2 billion during the previous quarter. For the year ended 2025, the value of deals secured came to $39.4 billion. This indicates that TCS is still attracting significant business and new work, something that is good for its future.
4. Mixed Performance across Business Segments
There are some sectors that are performing well for TCS, while others are not. Manufacturing, energy, and utilities, for instance, grew a few percent. But other sectors such as communication and media, life sciences and healthcare, and technology services declined. This indicates that TCS’s performance is industry-driven.
5. Stable Profit Margins
The company’s profit margin, known as EBIT margin, stayed about the same or increased slightly. This happened because the BSNL project is nearly complete, some wage increases were postponed, and international business is still growing. These factors help to control costs and improve profitability.
6. Employee Numbers and Attrition
TCS’s total staff increased slightly, by around 625 employees, bringing the total to over 607,000. However, the percentage of employees leaving the company rose a bit, from 13% to 13.3%. This shows that while TCS is hiring, it is also facing some employee turnover.
Overall, TCS’s recent numbers reflect slow but steady performance. The company is finishing a large project and expanding into other areas while still securing big contracts. Margins are stable, and the workforce is growing slightly, although turnover is also up. These conditions illustrate a company navigating challenges while performing well in a competitive IT landscape.
