Tata Consultancy Services Ltd (TCS) reported its financial results for the fourth quarter ended March 2025 (Q4 FY25), reflecting a stable operational performance with notable growth in revenue and a slight dip in profitability.
Result Summary:
- Sales grew by 5.14% YoY in Q4 FY25.
- PBIDT margin contracted to 29.54% from 31.76% last year.
- PAT declined by 2.43% YoY to ₹111,160 million.
- Depreciation cost increased significantly by 14.67%.
- Deferred tax adjustments surged by 57.97%.
TCS Q4 Financial Statement 2025 (₹ in Million)
| Metric | Q4 FY25 (202503) | Q4 FY24 (202403) | % Change |
|---|---|---|---|
| Sales | 541,360 | 514,880 | 5.14% |
| Other Income | 19,220 | 18,060 | 6.42% |
| PBIDT | 159,910 | 163,520 | -2.21% |
| Interest | 2,010 | 1,970 | 2.03% |
| Depreciation | 11,180 | 9,750 | 14.67% |
| PBT | 146,720 | 151,800 | -3.35% |
| TAX | 35,560 | 37,870 | -6.10% |
| Deferred Tax | -2,180 | -1,380 | 57.97% |
| PAT | 111,160 | 113,930 | -2.43% |
| PBIDT Margin (%) | 29.54 | 31.76 | -6.99% |
Revenue Growth Outpaces Profit
For the quarter ended March 2025, TCS reported sales of ₹541,360 million, registering a 5.14% growth compared to ₹514,880 million in the same quarter last year. The robust top-line performance indicates sustained demand across key verticals and geographies.
Other income stood at ₹19,220 million, up 6.42% YoY, reflecting better treasury income or gains from non-core activities.
Margins Witness Slight Pressure
Despite higher revenues, operating performance saw marginal compression. The Profit Before Interest, Depreciation, and Tax (PBIDT) came in at ₹159,910 million, slightly down by 2.21% from ₹163,520 million in Q4 FY24. This resulted in a PBIDT margin of 29.54%, lower than last year’s 31.76%.
Interest expenses rose marginally by 2.03% to ₹2,010 million, while depreciation expenses increased significantly by 14.67% to ₹11,180 million.
Profitability Declines
Profit Before Tax (PBT) for the quarter stood at ₹146,720 million, a decline of 3.35% YoY. TCS reported Profit After Tax (PAT) at ₹111,160 million, marginally down by 2.43% compared to ₹113,930 million in the corresponding period last year. The drop in PAT was primarily due to increased depreciation and higher tax expenses.
Tax outgo reduced by 6.10% to ₹35,560 million, but deferred tax adjustments increased significantly by 57.97%, standing at -₹2,180 million compared to -₹1,380 million in Q4 FY24.
Year-to-Date and Annual Performance
On a year-to-date basis (FY25), the company clocked total sales of ₹2,148,530 million, showing a 6.17% growth from the previous year. Annual PAT reached ₹480,570 million, rising 10.33% YoY, indicating a strong full-year performance despite a weaker Q4.
Equity Capital Remains Unchanged
The company maintained its equity capital base at ₹3,620 million during the quarter and full year.
TCS has delivered steady revenue growth for Q4 FY25 backed by resilient demand and improved other income. However, cost pressures—particularly from higher depreciation and marginally increased interest—impacted its profitability. Investors should watch margin trends in the coming quarters, especially amid evolving macroeconomic conditions and changing client IT budgets.
Disclaimer: This blog is for informational purposes only and should not be considered as financial advice or any buy/sell recommendations.
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