TCS Q4 results today: Analysts see muted revenue, profit growth; all eyes on dividend, outlook amid US tariffs

Tata Consultancy Services (TCS), the largest IT services company in India, is set to declare its Q4 results today, April 10. Along with the TCS Q4 results, the IT major will also announce its earnings for the full financial year ending 31 March 2025. The financial results for the fourth quarter of FY25 for TCS will be declared on the day when the Indian stock market is closed on account of Mahavir Jayanti 2025.

The Indian IT sector is expected to report mixed earnings for Q4FY25 impacted by persistent regulatory and economic uncertainties. Analysts believe a deteriorating macroeconomic environment may adversely impact IT sector Q4 results and guidance for FY2026.

In line with the broader IT sector, TCS Q4 results are also expected to be muted, with flat revenue growth, steady deal wins and marginal rise in net profit.

Here’s what to expect from TCS Q4 results today:

TCS Q4 Revenue

TCS is expected to post revenue of ₹64,964 crore in the quarter ended March 2025, registering a growth of 1.5% from ₹63,973 crore in the previous quarter, according to estimates by Kotak Institutional Equities.

Revenue in US dollar terms is likely to fall 0.5% to $7,502 million from $7,539 million, quarter-on-quarter (QoQ). In constant currency (CC) terms, the brokerage firm expects revenue to decline 0.3% QoQ, forecasting flat revenues for the international business and $30 million decline in BSNL revenues.

Brokerage firm Nuvama Institutional Equities expects TCS’ CC revenue  to fall 0.2% QoQ and USD revenue to drop 1% QoQ due to ramp down in BSNL project - offset by strong rebound in developed markets

TCS Q4 Deal Wins

TCS is expected to report steady deal wins of $11 billion, according to Kotak Equities. This is a decline from $13.2 billion last year, which included certain large renewals. Analysts will focus on the reasons for struggle for growth in the international business, which has been insipid due to ramp-downs and modest deal wins.

TCS Q4 Net Profit

The company’s net profit is estimated at ₹12,663.6 crore in Q4FY25, registering a growth of 2.3% from ₹12,380 crore, in the December quarter, as per the brokerage firm.

TCS Q4 EBIT

At the operational level, TCS’ Earnings Before Interest and Taxes (EBIT) in the March quarter is expected to increase 3.5% to ₹16,198.5 crore from ₹15,657 crore, QoQ. EBIT margin during the quarter is estimated to improve by 46 basis points (bps) to 24.9% from 24.5% on a sequential basis.

The benefit of rupee depreciation will be eaten away by promotions and investments in business, resulting in disappointing margin performance, Kotak Equities said.

TCS Dividend

TCS board of directors will also recommend a final dividend for FY25 today.

“The Board of Directors of Tata Consultancy Services Limited is scheduled to be held on Thursday, April 10, 2025, inter alia to recommend a final dividend, if any, on the equity shares of the Company for the financial year ending March 31, 2025, for the approval of the shareholders at the ensuing 30th Annual General Meeting,” TCS said in a regulatory filing.

TCS Q4 Results: What to watch out for?

In the TCS Q4 results, analysts said, the focus would likely be on the impact of tariffs and the recent chain of macro deterioration in the US on business and outlook for FY2026. The reasons for underperformance in growth in developed markets, any projects cancellations or delays since January 2025 and its impact on FY2026 growth outlook would also be monitored.

Moreover, the outlook in the financial services vertical and any loss of share to insourcing at large clients, state of spending in the UK and Europe markets and signs of improvement in demand, impact of GCC ramp-up on growth of companies and levers to defend and increase margins, will also be in focus.

TCS Share Price Trend

TCS share price has declined 13% over the past one month and more than 20% in the last three months. The IT stock is down over 12% in one year. However, despite recent weakness, TCS share price has delivered a robust return of 67% over the past five years.

On Wednesday, TCS shares ended 1.44% lower at ₹3,246.10 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.