TCS reported an annual revenue of Rs. 255,324 crore in FY 2025. This shows a solid 6.0% year-on-year growth
MUMBAI (India CSR): Tata Consultancy Services (TCS) has reported an exceptional performance for Fiscal Year 2025. The global IT giant celebrated two extraordinary milestones, crossing the US$30 billion mark in revenues and the US$20 billion mark in brand value. This success comes despite a challenging geopolitical and macro-economic environment.
K Krithivasan, CEO and Managing Director, expressed his gratitude in recent annul report. “I am pleased to share that in FY 2025, we achieved two extraordinary milestones crossing the US$30 billion mark in revenues and the US$20 billion mark in brand value,” he stated. He added that this success is “a testament to the early investments we have made in strengthening client relationships, building intellectual property, deepening employee capabilities and expanding technology ecosystem”.
Financial Strength and Growth
TCS reported an annual revenue of Rs. 255,324 crore in FY 2025. This marks a solid 6.0% year-on-year growth. Growth Markets saw strong demand, driven by accelerated digital adoption and new client acquisitions. Governments also invested significantly in digital public services, creating new opportunities for TCS. The company maintained industry-leading margins of 24.3%, with a net margin of 19.0%. Earnings per share reached Rs. 134.19.
TCS’s consistent capital allocation policy also benefited shareholders. The Board recommended a final dividend of Rs. 30 per share, bringing the total dividend for the year to Rs. 126 per share. The company’s total shareholder payout for the year was Rs. 45,588 crore.
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Unwavering Client Commitment
Client satisfaction remains a cornerstone of TCS’s strategy. For the 12th year in a row, TCS was ranked #1 for customer satisfaction in Europe. The number of clients spending over US$100 million annually increased to 64 in FY 2025.
The company reported a robust Total Contract Value (TCV) of US$39.4 billion. This included a balanced mix of large, medium, and small deals. Clients prioritized initiatives like technology modernization, cost optimization, and operating model transformation. For example, TCS was chosen by Primark, a leading international fashion retailer, to transform its technology operations. This partnership aims to support Primark’s global growth plans over the next five years. TCS is also partnering with Xerox in its re-invention strategy. This involves migrating complex legacy data centers to the Azure public cloud and implementing a cloud-based Digital ERP platform.
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People and AI-Powered Talent
TCS’s 607,979 associates globally are unified by core values such as Leading Change and Excellence. The company has received over 100 awards for its HR practices. An AI-First approach has significantly advanced talent management, learning, and employee engagement. This has contributed to industry-leading retention rates, with LTM attrition in IT services at 13.3%.
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The AI Revolution: A Strategic Imperative
Innovation is rapidly transforming the AI ecosystem. This includes advancements in infrastructure, data platforms, and AI-native business applications. Companies are now heavily investing in technology modernization and AI adoption. Clients are shifting their focus from simple use cases to ROI-led scaling of AI.
TCS is at the forefront of this shift, supporting clients through various offerings:
- Establishing AI Centers of Excellence for scalable enterprise AI strategies.
- Creating AI Labs for technology experimentation with clients.
- Building safe, secure, scalable GenAI as a Service Platforms.
- Providing domain AI solutions for business operations with over 150 AI agents.
- Delivering GenAI-infused services for Software Engineering, IT operations, and Cyber Security.
- Setting up sovereign secure Cloud with integrated AI.
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Leadership and Future Vision
To capitalize on the growth opportunity presented by AI, TCS announced two key organizational changes. Effective May 1, 2025, Aarthi Subramanian joined as President and Chief Operating Officer. Mangesh Sathe was welcomed as the new Chief Strategy Officer. Both leaders are expected to play a pivotal role in strengthening the company’s growth journey and enhancing operational excellence.
K Krithivasan reiterated TCS’s forward-looking commitment. “We remain steadfast in our commitment to delivering value to all stakeholders and setting new benchmarks in the IT services industry,” he affirmed. He concluded by stating, “Our focus on innovation and growth drives us to continuously explore new technologies and business models, ensuring we stay ahead in an ever-evolving landscape”.
(India CSR)
