TCS Q1 Results: From profit, revenue, to key deal wins- 5 key highlights from IT major's June quarter earnings

Tata Consultancy Services (TCS), India’s largest IT services firm, kick-started the FY2025 earnings season with a solid set of numbers for the quarter ended June 30, 2025 (Q1FY25). The company showcased strong resilience in a challenging macro environment, aided by robust deal wins and stable demand in key verticals.

Here are the five key highlights from TCS’s Q1 results:

1. Net Profit Rises 9% YoY to ₹12,490 crore

TCS reported a consolidated net profit of ₹12,490 crore in Q1FY25, marking a 9% year-on-year (YoY) growth from ₹11,450 crore in Q1FY24. On a sequential basis, profit was up 3.7% from ₹12,040 crore in Q4FY24. The growth was largely driven by operational efficiencies and strong execution across geographies.

Commenting on the results, K Krithivasan, CEO and MD, TCS, said, “We are pleased with the consistent performance in the first quarter. While the macroeconomic environment remains uncertain, our client engagements continue to deepen, and we are investing in building future-ready capabilities.”

2. Revenue Crosses ₹65,000 Crore Mark, Grows 5.4% YoY

TCS posted consolidated revenue of ₹65,420 crore in Q1FY25, registering a 5.4% YoY increase compared to ₹62,050 crore in Q1FY24. In constant currency (CC) terms, revenue grew by 3.5% YoY, reflecting moderate demand recovery in BFSI, manufacturing, and healthcare verticals.

The growth was also aided by the company’s focus on large digital transformation projects and increased offshoring by clients. North America remained the largest contributor, while India and UK showed accelerated growth on a QoQ basis.

3. Robust Deal Wins: $11.2 Billion TCV in Q1FY25

In one of the major positives, TCS reported total contract value (TCV) of $11.2 billion in Q1FY25, up from $10.2 billion in the previous quarter. This includes several large and mega deals across banking, telecom, and retail sectors.

Among the notable wins:

• A multi-year transformation deal with a leading European bank.

• Cloud migration and managed services agreement with a major US telecom operator.

• Digital platform modernization for a global retailer.

Rajesh Gopinathan, CFO, said, “Our deal pipeline remains healthy, with a strong focus on cost optimization, cloud adoption, and enterprise transformation initiatives across clients.”

4. Operating Margins Hold Steady at 24.7%

TCS maintained stable operating margins at 24.7% in Q1FY25, compared to 24.5% in the same quarter last year. On a QoQ basis, margins improved by 30 basis points, supported by better utilization, optimized delivery mix, and currency tailwinds.

Employee costs remained in check, and attrition dropped further to 12.1% — a sign of improving workforce stability post-pandemic.

The company added 5,300 employees in Q1, taking its total headcount to 6.14 lakh. TCS continues to invest in AI-led upskilling, with over 300,000 associates now trained on GenAI tools.

5. Strong Outlook for FY25 Despite Cautious Environment

Despite macro challenges in the US and Europe, TCS remains optimistic about growth prospects for FY25. The management reaffirmed its focus on digital transformation, cloud, GenAI, and cybersecurity as core pillars for growth.

Analyst Viewpoint:
Siddharth Sinha, Senior IT Analyst at Kotak Securities, noted, “TCS’s Q1 performance indicates stability in client spending and successful execution of large programs. Margin expansion and strong deal wins are encouraging signs. However, growth acceleration in BFSI and North America will be key for re-rating.”

Market Reaction

Post-results, TCS shares closed 1.3% higher at ₹4,185 on the BSE, reflecting investor confidence in the company's earnings resilience. The stock has gained nearly 9% so far in 2025, outperforming the Nifty IT index.

Investor Outlook: Long-Term Story Intact

TCS’s Q1FY25 results affirm the company’s ability to weather macroeconomic pressures through execution excellence and client trust. With over $11 billion in fresh deal wins, steady margins, and ongoing investment in emerging tech, analysts expect low double-digit revenue growth for the full year.

The company’s ongoing buyback program and consistent dividend payouts also enhance shareholder value. For long-term investors, TCS remains a cornerstone in India's tech sector portfolio.