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Informist, Thursday, Oct. 9, 2025

 

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--TCS Jul-Sept consol net profit INR 120.75 bln 
--Analysts saw TCS Jul-Sept consol net profit at INR 125.58 bln 
--TCS Jul-Sept consol revenue INR 657.99 bln 
--Analysts saw TCS Jul-Sept consol revenue at INR 651.44 bln 
--TCS Jul-Sept consol net profit INR 120.75 bln vs INR 127.60 bln qtr ago 
--TCS Jul-Sept consol revenue INR 657.99 bln vs INR 634.37 bln qtr ago 
--TCS to pay INR 11 per share interim dividend 
--TCS interim dividend record date is Wednesday 
--TCS Jul-Sept consol BFSI revenue INR 257.17 bln vs INR 247.36 bln qtr ago 
--TCS Jul-Sept consol mfg revenue INR 66.31 bln vs INR 64.01 bln qtr ago 
--TCS Jul-Sept consol consumer sales INR 103.51 bln vs INR 101.55 bln qtr ago 
--TCS Jul-Sept net profit includes one-time cost INR 11.35 bln 
--TCS Q2 consol comm, media, tech sales INR 98.02 bln vs INR 94.36 bln qtr ago 
--TCS Q2 consol life science, health sales INR 68.84 bln vs INR 64.22 bln QoQ 
--TCS Jul-Sept profit excluding exceptional cost INR 132.10 bln 
--TCS Jul-Sept consol revenue up 0.8% on quarter in constant currency 
--TCS Jul-Sept BFSI segment revenue up 1.1% on qtr in constant currency 
--TCS Jul-Sept consol operating margin 25.2% vs 24.5% qtr ago 
--TCS Jul-Sept consumer ops sales down 1% on quarter in constant currency 
--TCS Jul-Sept order book total contract value $10 bln 
--TCS Jul-Sept life sciences, health sales up 3.4% QoQ in constant currency 
--TCS Jul-Sept manufacturing sales up 1.6% on quarter in constant currency 
--TCS Jul-Sept tech, svcs sales up 1.8% on quarter in constant currency 
--TCS Jul-Sept comm, media sales up 0.8% on quarter in constant currency 
--TCS Q2 energy, resources, utilities sales up 0.6% QoQ in constant currency 
--TCS Jul-Sept regional mkts, others sales dn 1.1% QoQ in constant currency 
--TCS Jul-Sept North America sales up 0.8% on quarter in constant currency 
--TCS Jul-Sept Latin America sales up 0.3% on quarter in constant currency 
--TCS Jul-Sept UK revenue down 1.4% on quarter in constant currency 
--TCS Jul-Sept revenue from India up 4% on quarter in constant currency 
--TCS Jul-Sept revenue from tech, svcs 8.5% of sales vs 8.4% qtr ago 
--TCS Q2 revenue from communications, media 5.9% of sales vs 5.8% qtr ago 
--TCS Q2 revenue from energy, resources, utilities 5.9% of sales, unch on qtr 
--TCS Q2 revenue from regional mkt, others 12.9% of sales vs 13.4% qtr ago 
--TCS Apr-Sept consol net profit INR 248.35 bln vs INR 239.49 bln year ago 
--TCS Apr-Sept consol revenue INR 1.29 tln vs INR 1.27 tln year ago 
--TCS Jul-Sept consol revenue down 3.3% on year in constant currency 
 

 

By Anjana Therese Antony

 

MUMBAI – Tata Consultancy Services Ltd. Thursday reported a higher-than-expected decline in its bottom line for the September quarter due to "re-structuring expenses" of around INR 11 billion. While the company did not provide further details about these costs, the huge expenses follow the company's decision to lay off around 12,000 of its employees. The decline in the bottom line also follows wage hikes in September and amid uncertainty about US policies, particularly regarding tariffs, trade, and visas. 

 

The IT behemoth's consolidated net profit fell over 5% sequentially to INR 120.75 billion, lower than the near INR 126 billion that broking firms had expected. Had it not been for the exceptional cost, its net profit would have been INR 132.10 billion, much higher than the Street's estimates. However, its revenue rose nearly 4% from the previous quarter to INR 657.99 billion, exceeding the INR 651.44 billion that brokerages had expected. From the year-ago period, the bottom line increased by a little over 1%, and revenue rose by 2%. 

 

In constant currency terms, the company's revenue grew 0.8% sequentially. This is better than the 0.5%  fall Nomura Equity Research had expected due to the drop in contribution from Bharat Sanchar Nigam Ltd.'s project. The INR-150-billion deal with BSNL was completed in the June quarter. For the reporting quarter, the company's total contract value was $10 billion, higher than the $7 billion-$9 billion range many broking firms had given. 

 

The IT giant's operating margin rose 70 basis points on quarter to 25.2%, way better than what almost all broking firms had expected. At least four brokerages had expected the metric to fall 20-30 bps sequentially, while one had expected it to rise 10 bps. Three other broking houses had estimated the margin to be stable.

 

During the reporting quarter, the Mumbai-based IT major's total expenses increased nearly 3% on quarter to nearly INR 495 billion, primarily due to the 2% rise in employee benefit expenses to about INR 386 billion. For the six months ended September, the IT giant's consolidated net profit rose nearly 4% on year to INR 248.35 billion and revenue grew almost 2% to INR 1.292 trillion. 

 

"We achieved good growth momentum across all verticals this quarter," Chief Financial Officer Samir Seksaria was quoted as saying in the press release. The financial resilience and robust balance sheet will support both internal transformation initiatives and external investments, he said. The company also announced a dividend of INR 11 per share, with the record date set for Wednesday.  

 

SEGMENTS

All verticals posted on-quarter growth in revenue in rupee terms. In constant currency terms, barring the consumer business, revenue from all other segments grew sequentially. However, revenues of four verticals – consumer, life sciences and healthcare, manufacturing, and communication and media – fell on a year-on-year basis.

 

Its core segment — banking, financial services, and insurance — grew 4% sequentially to INR 257.17 billion. However, in constant currency terms, the segment grew by only 1% on quarter and on year. During the quarter, TCS signed a seven-year deal worth around INR 56 billion with Scandinavia-based non-life insurance company Tryg. The revenue contribution from the segment constituted around 32.2% of the company's overall top line, slightly higher than 32% a quarter ago and 30.8% a year ago.  

 

The revenue from its second-largest business — consumer — rose almost 2% on quarter to INR 103.51 billion. However, in constant currency terms, revenue fell 1% on quarter and almost 3% on year. This segment accounts for around 15% of the IT giant's overall revenue.   

 

Life sciences and healthcare business, the third-biggest vertical of TCS, saw the fastest growth among all verticals, up 7% sequentially at INR 68.84 billion. While the top line in constant currency terms grew more than 3% on quarter, it fell over 2% on year. The manufacturing and communications verticals saw a near 4% growth each sequentially to INR 66.31 billion and INR 98.02 billion, respectively. The verticals accounted for almost 9% and 6% of the company's overall topline in the latest quarter, respectively. 

 

GEOGRAPHIES

In constant currency terms, revenue from all regions grew from the previous quarter, barring the UK. However, on a year-on-year basis, revenue from four geographies – North America, the UK, continental Europe, and India –declined. Among these, the business in India fell the most, down more than 33% on year. Domestic business accounted for nearly 6% of the IT giant's top line.  

 

Business in the Americas saw modest growth amid concerns over US tariffs, recently announced stringent visa policies, and uncertainty about further policies under President Donald Trump. Revenue from North America, which constitutes almost 49% of the company's top line, rose 0.8% on quarter in constant currency, but fell 0.1% on year. Latin America revenue was up 0.3% on quarter and almost up 2% on year. 

 

In Europe, revenue from the UK as well as continental Europe declined on year, down nearly 2% and 3%, respectively. The UK constituted about 18% of the company's revenue, while continental Europe accounted for more than 15%.  

 

TCS released its quarterly results after market hours. Thursday, its shares closed 1.1% higher at INR 3,061.70 on the National Stock Exchange. The company's post-earnings call with investors is scheduled at 1900 IST. Investors will closely watch the management's comments about the demand environment, client budgets, deal conversions, US visa policies, and employee layoffs.  End

 

US$1 = INR 88.78

 

Edited by Saji George Titus

 

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