TCS Q4 Results: Profit falls 2% to Rs 12,224 crore, final dividend at Rs 30

Tata Consultancy Services (TCS) just wrapped up its March quarter earnings, and the headline numbers left a mixed taste for investors.

Here’s a snapshot of the key takeaways:

1. Profit Misses Expectations

• Net profit dropped 2% YoY to ₹12,224 crore, below Street estimates of ₹12,650 crore.

• This decline, although modest, is notable for a bellwether like TCS, and reflects ongoing pressure on margins.

2. Revenue Grows But Misses Estimates

• Revenue came in at ₹64,479 crore, up 5.3% YoY, but just shy of the expected ₹64,800 crore.

• While top-line growth remains intact, the slight miss reflects challenges in client spending—especially in key markets like the US and Europe.

3. Strong Deal Wins = Silver Lining

• TCS bagged $12.2 billion in deals, a solid jump from $10.2 billion in Q3.

• This uptick signals resilient client demand in areas like cloud transformation, AI, and digital services despite macro uncertainty.

4. Dividend Bonanza for Shareholders

• Final dividend of ₹30 per share announced, taking FY25 total to ₹126/share.

• That’s a sweet return for long-term investors, even if stock performance has been underwhelming.

5. Stock Performance

• TCS closed down 1.64% at ₹3,239 after the earnings.

• The stock is down 21% in 2025, underperforming broader indices and reflecting investor frustration over tepid profit growth.

In summary:

TCS is still securing strong deals and maintaining revenue growth, but cost pressures and delayed decision-making among global clients are dragging down profits. The generous dividend may provide a cushion for investors, but until profitability improves and demand fully rebounds, the stock might remain range-bound.

The big watch now? Management commentary on FY26 guidance and demand outlook in BFSI and North America — if that starts to firm up, sentiment could turn.