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TCS Q4 Results Today: Apart from the revenue and profit numbers for the January-March 2025 quarter, investors will keenly follow the management commentary on the company’s guidance or future outlook.
TCS Q4 results.
Tata Consultancy Services (TCS), India’s largest IT services company, is set to announce its Q4 quarterly earnings on Thursday amid the global tariff war and US recession fears. Apart from the revenue and profit numbers for the January-March 2025 quarter, investors will keenly follow the management commentary on the company’s guidance or future outlook. According to analysts, TCS is set to kickstart India Inc’s Q4 FY25 corporate earnings on a weaker note and is likely to post subdued revenue and profit growth numbers.
TCS might report a modest 5 per cent YoY revenue growth to Rs 64,840 crore, while net profit is likely to inch up 1.4 per cent to Rs 12,554 crore, according to an average of four brokerage estimates polled by Moneycontrol. However, EBITDA is projected at Rs 17,154 crore.
On a constant currency (CC) basis, TCS’ revenue might fall quarter-on-quarter, primarily due to a reduction in BSNL-related revenues. While the BFSI (Banking, Financial Services and Insurance) vertical is expected to drive growth, segments such as manufacturing, retail, and healthcare are likely to remain subdued.
According to HSBC, the IT major is expected to post a 2.1 per cent Q-o-Q revenue growth to Rs 61,237 crore in the March 2025 quarter. On an organic constant currency (CC) basis, HSBC expects the company to report 1 per cent Q-o-Q revenue growth.
Kotak Securities in its note said TCS to post flat revenues in CC terms for the international business and a $30 million decline in BSNL revenues.
Kotak said the benefit of rupee depreciation will be eaten away by promotions and investments in business, resulting in disappointing margin performance. It expects steady deal wins of $11 billion, a decline from $13.2 billion last year. “Focus will be on reasons for the struggle for growth in international business, which has been insipid due to ramp-downs and modest deal wins,” Kotak said.
Deepak Jotwani, vice president & sector head, ICRA, said, “The growth momentum for ICRA’s sample set of IT services companies is likely to remain muted over the near term, owing to the looming uncertainty related to imposition of the US trade tariffs and macroeconomic headwinds across the key markets of the US and Europe.”
ICRA projects a moderate 4-6% revenue expansion in dollar terms in FY2026, following the 4-5% increase estimated for FY2025. Policy changes by the US government for key sectors catered to by Indian IT services companies as well as future interest rate trajectory will remain the key monitorables, he added.
In the previous quarter ended December 2024 (Q3 FY25), TCS had posted a net profit of Rs 12,380 crore, which was an 11.9 per cent jump from Rs 11,058 crore a year ago. Its revenue stood at Rs 63,973 crore, up 5.6 per cent year-on-year. On a sequential basis, revenue declined 0.4 per cent.
TCS Q4 Results Today: Things To Watch Out For
According to analysts, key things to watch out for in Q4 results include deal pipeline, Q4 revenue, Q4 profit and hiring.
Management commentary for the future growth outlook will be keenly watched by investors, especially at a time when tariff war is taking place and a US recession chances are high, they said.
