TCS (Tata Consultancy Services) has achieved 3.8 percent increase in revenue to $30.18 billion during fiscal 2025.
“Our expertise in AI and Digital Innovation, coupled with the unmatched knowledge of customer context and global scale makes us the pillar of support for our customers in this environment of macroeconomic uncertainty,” K Krithivasan, Chief Executive Officer and Managing Director of TCS, said.
TCS did not reveal the size of the revenue from AI customers.
TCS reported a year-on-year increase in large clients, with those contributing over $100 million rising by 2, over $10 million by 6, and over $1 million by 38. The company’s total contract value (TCV) for the period stood at $39.4 billion, with North America accounting for $21.6 billion. Within industry verticals, the BFSI segment contributed $12.8 billion to the TCV, while the Consumer Business segment added $5.3 billion.
TCS reported a mixed performance in client contributions when comparing Q4 FY24 to Q4 FY25. The number of clients contributing over $1 million increased from 1,294 to 1,332, while those in the $5 million+ bracket rose from 693 to 723. Clients contributing over $10 million also grew slightly from 487 to 493.
However, there was a slight drop in the $20 million+ segment, falling from 301 to 298, and a more notable decline in the $50 million+ category, which decreased from 139 to 130. In contrast, the number of $100 million+ clients rose from 62 to 64, indicating growth at the very top tier despite some softness in the mid-to-upper client bands.
TCS said trainee onboarding in FY25 was 42,000. The total number of employees at TCS has reached 607,979 at the end of March 2025. IT Services Attrition (LTM) was 13.3 percent.
In the BFSI sector, growth moderated from 2.5 percent in Q4 to 0.7 percent for the full year, suggesting a deceleration in this key vertical.
Consumer Business showed a slight recovery, moving from a marginal decline of -0.2 percent in Q4 to a modest positive growth of 0.3 percent for the year.
Life Sciences & Healthcare remained in negative territory, though the contraction was less severe in FY 2025 at -1.6 percent compared to -5.6 percent in Q4, indicating some improvement.
Manufacturing stood out with a strong turnaround, bouncing from a decline of -2.9 percent in Q4 to a positive growth of 2.9 percent for the full year. In contrast, Technology & Services saw a drop in performance, slipping from 1.1 percent growth in Q4 to a contraction of -1.3 percent over the year. Communication & Media continued to struggle, with consistently weak growth figures of -9.8 percent in Q4 and -9.5 percent for the full year.
Energy, Resources & Utilities maintained solid growth, improving slightly from 4.6 percent in Q4 to 5.1 percent in FY 2025. The standout performer was Regional Markets & Others, which saw extraordinary growth of 24.2 percent in Q4 and an even more impressive 37.2 percent across the full year, reflecting robust and sustained expansion in this segment.
North America, the largest market for TCS, saw a slight decline in share from 50.0 percent in Q4 FY24 to 48.2 percent in Q4 FY25, with a year-on-year contraction of -1.9 percent in Q4 and -1.8 percent for the full year. Latin America, although a much smaller contributor, showed positive momentum, growing by 4.3 percent in Q4 and 6.0 percent over the year.
In Europe, the UK remained stable in terms of revenue share at 16.8 percent in Q4 FY25, with growth improving from 1.2 percent in Q4 to 4.0 percent for the full year. Continental Europe showed more modest gains, with growth at 1.4 percent in Q4 and 0.7 percent for FY 2025.
The Asia Pacific region experienced healthy growth, increasing from 6.4 percent in Q4 to 6.8 percent across the year, and maintaining its share around 8.0 percent. India stood out with a sharp increase in contribution, rising from 6.7 percent in Q4 FY24 to 8.4 percent in Q4 FY25. It recorded a strong growth of 33.0 percent in Q4 and an impressive 62.6 percent for the full year, making it the fastest-growing market.
The Middle East and Africa region also performed well, improving its share slightly and growing by 13.2 percent in Q4 and 11.2 percent for the full year.
In summary, while North America remained under pressure, strong growth in India, MEA, and Latin America helped TCS achieve solid full-year performance in FY 2025, with improvements seen across most markets compared to the previous fiscal year.
TCS will remain a valuable partner for clients, with its strategy well-aligned with market demands and clients’ digital transformation goals. TCS reported an average attrition rate of 13.3 percent, slightly higher than the previous quarter. The IT services company needs to closely monitor its attrition rate, as a high workload can sometimes adversely affect overall performance quality, Biswajit Maity, Sr Principal Analyst, Gartner, said.
Baburajan Kizhakedath
