Mumbai | June 14, 2025 Tata Consultancy Services (TCS), India’s largest IT services firm, posted an 8% year-on-year (YoY) growth in net profit for the first quarter of FY25, outperforming market estimates amid global IT spending uncertainties
Key Highlights:
- Net Profit: ₹11,780 crore (vs ₹10,900 crore in Q1 FY24)
- Revenue: ₹64,050 crore, up 5.2% YoY
- Operating Margin: 24.8%, slightly up from 24.3% in the previous quarter
- New Deal Wins: Worth $10.4 billion, with strong growth in BFSI and cloud services
CEO Commentary:
“We’re witnessing renewed demand in digital transformation, especially in North America and APAC markets,” said K. Krithivasan, CEO & MD of TCS.
“Despite macroeconomic pressures, our consistent performance demonstrates the resilience of our business model and trust from our global clients.”
Market Reaction:
TCS shares opened 2.1% higher on the BSE post earnings announcement, trading at ₹3,885 as of 10:30 AM IST.
Brokerage firms like Motilal Oswal and ICICI Securities have maintained a ‘Buy’ rating, citing stable margins, deal pipeline, and digital revenue growth.
Sector Overview:
- IT majors are reporting mixed results due to cost-cutting in US and European markets.
- However, Indian firms like Infosys, Wipro, and HCL Tech are expected to post 5%–9% YoY growth in the June quarter, with cloud and AI driving demand.
What It Means for Investors:
With consistent dividends, a strong balance sheet, and increasing digital investments, TCS remains a long-term play in the Indian IT space especially for investors seeking stability amidst global tech volatility.
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