Tata Consultancy Services (TCS), India’s largest IT services firm, will announce its Q4FY25 earnings today, with investors and analysts closely monitoring whether the company signals early signs of recovery after a challenging fiscal year. The street is keen to understand if deal momentum is translating into revenue growth and how the management guides for FY26.

Q3FY25 Highlights (October–December 2024)

  • Net Profit: ₹12,380 crore, up 11.9% YoY and 4% QoQ

  • Revenue: ₹63,973 crore, up 5.6% YoY, but down 0.5% QoQ

  • EBIT: ₹15,657 crore, up from ₹15,465 crore in Q2

  • EBIT Margin: 24.5%, an expansion of 40 basis points QoQ

  • Key Note: Adjusted for a one-time legal settlement of ₹958 crore in Q3FY24, YoY profit growth stood at 5.5%

Geographical and Vertical Performance in Q3FY25

  • US revenue: Declined 1.5% QoQ

  • UK revenue: Declined 4% QoQ

  • EU revenue: Declined 6.4% QoQ

  • India revenue: Increased 8.2% QoQ, APAC fell 4.2%

Verticals:

  • BFSI: Fell 4% QoQ

  • Manufacturing: Down 4%

  • Healthcare: Down 4.5%

  • India business: Up 8.3%, while ex-India declined 2.7%

Management Commentary Post-Q3FY25

TCS MD & CEO K Krithivasan said:

“It was an excellent TCV performance in Q3 which was well-rounded across industries, geographies and service lines lending good visibility to long-term growth. BFSI and CBG returning to growth, continued stellar run of Regional Markets and early signs of revival in discretionary spend in some verticals give us confidence for the future.”

What to Watch for in Q4FY25

1. Revenue & Profit Trends

  • US Dollar revenue expected to fall 0.8% QoQ to $7,481.5 million

  • Rupee revenue expected to grow 1.2% QoQ to ₹64,741 crore

  • EBIT expected at ₹16,034 crore with margin likely at 24.8%

2. Guidance for FY26

  • Market will watch for signs of revival in discretionary tech spending and deal conversion timelines.

3. Margin Support

  • Rupee depreciation could support margins by ~30 bps

  • Growth excluding BSNL deal to be slightly higher

4. Geography & Sector Commentary

  • Recovery in BFSI, US and EU segments would be a positive trigger

  • Any guidance on new deal wins and large client ramp-ups will be key

Stock Performance

  • TCS has underperformed the IT index in 2025

  • Down 10% in the last month, and 21% year-to-date (YTD)

  • From its 52-week high of ₹4,592, the stock is down 30%

As TCS kicks off the Q4 earnings season, the market will not only assess the financial numbers but focus heavily on what the management has to say about demand trends, FY26 growth outlook, and deal pipelines

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