Tata Consultancy Services (TCS) reported its consolidated financial results according to Ind AS and IFRS, for the quarter ending June 30, 2025.
Highlights of the Quarter Ended June 30, 2025
- Revenue at ₹63,437 crore, +1.3% YoY, Decline of 1% YoY in Constant Currency
- Operating Margin at 5%; an expansion of 30 bps QoQ
- Net Income at ₹12,760 crore, +0% YoY | Net Margin at 20.1%
- Net Cash from Operations at ₹12,804 croree. 100.3% of Net Income
- Workforce strength: 613,069 | Net Headcount addition of 6,071 YoY
- LTM IT Services attrition rate at 8%
- Dividend per share: ₹ 11 | Record date 16-Jul-2025 | Payment date 04-Aug-2025
K Krithivasan, Chief Executive Officer and Managing Director, said “The continued global macro-economic and geo-political uncertainties caused a demand contraction. On the positive side, all the new services grew well. We saw robust deal closures during this quarter. We remain closely connected to our customers to help them navigate the challenges impacting their business, through cost optimization, vendor consolidation and AI-led business transformation”. Customers are moving ahead with projects that promise clear, immediate results—mainly those focused on cost optimization. However, for transformation or investment-led projects with uncertain ROI, they’re holding off until there’s more clarity.
TCS revenue was impacted by a 2.8% decline due to the BSNL ramp-down, while international markets saw a modest 0.5% dip. Despite this, the company expects stronger international growth in FY26 compared to FY25.
Aarthi Subramanian, Executive Director – President and Chief Operating Officer, said “Across industries, clients are increasingly shifting their focus from use case based approach to ROI led scaling of AI. We are investing across the AI ecosystem including infrastructure, data platform solutions, AI agents and business applications. Launching TCS SovereignSecureTM Cloud, TCS DigiBOLTTM, and TCS Cyber Defense Suite, to accelerate India’s AI led transformation was a particular highlight of this quarter”. Amid ongoing uncertainties in the business environment, the company has not announced a wage increase or specified a timeline for its implementation. However, it stated that a wage revision is expected to be announced later in the year. In the early days of GenAI, most efforts were experimental. But over the past few years, the technology’s potential has become clear. Now, customers are moving from experimentation to use case–driven projects that deliver real business value. This shift is reflected in the strong growth of new service lines like AI, cybersecurity, public cloud, and TCS Interactive. Specifically in AI, we’re investing in industry-specific, bespoke solutions as well as agentic AI use cases—pre-built, rapid-deployment projects designed to deliver quick, tangible value.
Samir Seksaria, Chief Financial Officer, said, “We continued our investments in long term sustainable growth this quarter. We stayed agile and adapted to the dynamic environment, delivering steady margins. Our industry leading profitability alongside robust cash conversion, positions us well to make strategic investments for the future”.
Milind Lakkad, Chief HR Officer, said “Talent Development is core to TCS. In this quarter, our associates invested 15 million hours in building expertise in emerging technologies, enabling them to lead the transformation journey for our customers. It is gratifying to note that TCS now has 114,000 people with higher order AI skills”. “We are still evaluating the market situation and have yet to decide on wage hikes. It can happen anytime, depending on the business environment,” If macro environment improves, we will definitely give the best possible hikes that we normally give,” he said.
Tata Consultancy Services (TCS) reported strong momentum across several business segments in the first quarter, with enterprise clients focusing on scaling AI, modernizing operations, and boosting cybersecurity. According to the company, client priorities during the quarter included enterprise-wide AI adoption, contact center transformation, cost optimization, and enhanced cyber defense.
Growth for the quarter was primarily led by the AI & Data unit, TCS Interactive, and Cyber Security services. Major deal wins were centered around themes like operating model transformation, vendor consolidation, AI-powered intelligent automation, and SAP S/4HANA-based transformations.
AI and Data Services
TCS’s AI and Data unit posted robust growth as clients moved from pilot projects to full-scale Generative AI (GenAI) deployments. The company noted strong demand for AI-led transformation initiatives, SDLC and IT operations automation, and data platform modernization. Its flagship platform, WisdomNext™, continues to evolve with new agentic AI capabilities. With over 114,000 AI-skilled professionals, TCS further cemented its leadership in enterprise AI solutions. The company also expanded strategic partnerships in this area.
Cloud Services
During the quarter, TCS reorganized its cloud offerings by integrating public cloud, Infrastructure Services, and TCS Cloud into a single unit. This was aimed at enhancing its hybrid cloud proposition. The company saw continued momentum in cloud contact center transformations, legacy modernization, and Cognitive Enterprise Network Services. TCS also strengthened its strategic alliance with Microsoft to develop new AI and cloud-based solutions for enterprise growth.
Cybersecurity Services
In Cyber Security, client focus remained strong on Identity and Access Management, Managed Detection & Response (MDR), and Governance, Risk & Compliance services. TCS also witnessed increasing interest in areas like Enterprise Attack Surface Management, Cloud Security, Data Security, and Network Security. The company noted that “focus on GenAI was observed across various customers.”
Enterprise Solutions
Enterprises are increasingly turning to AI-powered SaaS platforms to streamline business processes and modernize their digital core. The Technology Services, Manufacturing, and Healthcare sectors led the growth for TCS in this segment. One major highlight was the successful deployment of SAP S/4HANA for a global pharmaceutical firm, aimed at harmonizing global operations. TCS’s partnership with Vianai also saw good traction across different industries.
IoT & Digital Engineering
Client investments in plant transformation and connected IoT platforms grew this quarter. Sectors such as Utilities, Energy, and Life Sciences showed notable activity. Smart manufacturing and digital thread services continued to see positive demand. TCS reported strong traction for these services particularly in the LATAM and European markets.
Cognitive Business Operations
TCS reported significant wins in large transformation deals across customer experience, HR, and finance operations. The deployment of AI in business operations signals a growing interest in autonomous systems. “We are making good progress in building Agentic AI solutions across key business processes,” the company said.
TCS Interactive
The TCS Interactive unit helped businesses improve operational efficiency and innovation through data and AI. The company focused on “Creative Engineering powered by AI” to enhance customer experience and marketing. TCS’s TwinX, an AI-powered marketing campaign solution, delivered impressive results—boosting foot traffic fivefold and doubling revenue for a global auto company.
TCS continues to strengthen its capabilities and partnerships across key digital transformation areas, positioning itself as a leading technology services provider in the AI-led future.
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