Tata Consultancy Services (TCS), the leading IT services provider in India, is set to unveil its financial results for the fourth quarter of FY25 on April 10. This announcement will also include a comprehensive overview of the company’s performance for the entire fiscal year ending on March 31, 2025. As the Indian IT landscape grapples with ongoing regulatory and economic challenges, expectations are mixed for Q4FY25 results.

Anticipated Financial Performance for TCS

Analysts predict that TCS’s upcoming financial results may reflect a subdued performance due to the broader economic climate. The IT sector, as a whole, is bracing for flat revenue growth, steady deal acquisitions, and a slight increase in net profit.

Forecasted Revenue Growth
According to estimates by Kotak Institutional Equities, TCS is expected to report revenues of approximately ₹64,964 crore for the quarter ending March 2025. This marks a 1.5% increase from the previous quarter’s revenue of ₹63,973 crore. However, in terms of US dollars, revenue might see a slight decline of 0.5%, dropping to $7,502 million from $7,539 million. The constant currency forecast suggests a 0.3% quarterly decrease, with expectations for flat revenues from international operations and a $30 million drop in revenues from BSNL.

Deal Wins and Their Implications
TCS is poised to announce steady deal wins totaling $11 billion, a decrease from last year’s impressive $13.2 billion, which included several significant renewals. Analysts will scrutinize the reasons behind the sluggish growth in TCS’s international business, which has been hindered by project ramp-downs and modest deal activity.

Net Profit and Operational Earnings

Net Profit Insights
In terms of net profit, TCS is projected to achieve approximately ₹12,663.6 crore, reflecting a growth of 2.3% from ₹12,380 crore recorded in the previous quarter. This indicates a stable upward trend in profitability, albeit under challenging circumstances.

Operational Performance
TCS’s Earnings Before Interest and Taxes (EBIT) for the March quarter is expected to rise by 3.5% to ₹16,198.5 crore, compared to ₹15,657 crore in the preceding quarter. Moreover, the EBIT margin is anticipated to improve slightly by 46 basis points, reaching 24.9% from 24.5%. However, analysts at Kotak Equities caution that the benefits from rupee depreciation may be offset by increased promotions and investments, potentially leading to disappointing margins.

What Analysts Are Monitoring Closely

As TCS prepares to release its Q4 results, analysts will be particularly vigilant regarding several key factors:

• Impact of Tariffs: The effect of recent tariff changes and the deteriorating macroeconomic landscape in the U.S. on TCS’s business outlook for FY2026.
• Growth Challenges: Insights into the sluggish performance in developed markets and any project cancellations or delays since January 2025 will be closely examined.
• Market Trends: The state of spending in the UK and European markets, along with any signs of demand improvement, will also be critical areas of focus.
• Operational Efficiency: The influence of GCC ramp-up on company growth, as well as strategies to defend and enhance profit margins.

TCS Share Price Movement

In recent months, TCS’s share price has faced challenges, declining by 8% in the past month and more than 19% over the last three months. Over a six-month timeframe, the stock has decreased by 22%, while the IT sector overall has dropped by over 16% in the past year. Nevertheless, TCS has managed to deliver an impressive 95% return over the last five years, showcasing its resilience in the long term.

With these insights in mind, stakeholders and investors will be keenly awaiting TCS’s Q4 results, hoping for clarity on the company’s direction amid a challenging economic landscape.