TCS share price falls as Q4 net profit declines 1.7% to ₹12,224 crore, dividend announced

The stock descended 0.18% to ₹3,240.85 apiece on the National Stock Exchange (NSE) at 10:08 am. Its market capitalisation stands at ₹11,71,554.83 crore.

TCS posted a 1.68% fall in its January-March quarter profit after tax (PAT) to ₹12,224 crore, compared to ₹12,434 crore a year ago. Sequentially, it declined 1.26%.

Its FY25 post-tax profit surged 4.2% year-on-year (YoY) to ₹48,553 crore.

Revenue from operations advanced 5.29% to ₹64,479 crore in Q4 FY25 as against ₹61,237 crore in the same period a year ago. Quarter-on-quarter, it climbed 0.79%.

K Krithivasan, the managing director and chief executive officer of TCS, said that the company expects the current fiscal year, i.e. FY26 to be better than FY25 on the revenue front but noted the ongoing challenges.

In an earnings conference, Krithivasan said, "Overall, while we had a de-growth of 0.8% on a sequential basis, all the major markets and most industry verticals grew. Based on the order book we have announced and the deals we have signed, while there could be some short-term uncertainty, FY26 will be a better year than FY25."

The Tata Group firm declared that it will be deferring salary hikes to its 6.07 lakh employees amid business uncertainties due to the tariff issues.

Despite the challenges, TCS recorded new project wins at USD 12.2 billion, which is its second highest ever, the CEO said.

In FY25, the company hired 42,000 freshers and will maintain or improve the number in the financial year 2025-26, the company's chief human resources officer, Milind Lakkad, said. The attrition rate was at 13.3%.

The India business revenues expanded by more than 62% to USD 2.61 billion due to the BSNL deal.

The company's board also proposed a final dividend of ₹30 per share. It will be approved at the forthcoming annual general meeting.

TCS also appointed Tata Group's chief digital officer (CDO) Aarthi Subramanian as the chief operating officer (COO). Tata Strategic Management Group's CEO Mangesh Sathe will take the role of chief strategy officer.