TCS Faces Profit Dip Amid Global Economic Tensions

Tata Consultancy Services reported a 1.68% decline in its net profit for Q4 FY25, while its annual revenue exceeded $30 billion. Amidst global economic uncertainties, CEO K Krithivasan cited AI and digital innovation as strengths. The US-China tariff tension adds to industry challenges, impacting tech demand outlook.

Tata Consultancy Services (TCS), India's leading IT firm, reported a 1.68% drop in net profit for Q4 FY25, totaling Rs 12,224 crore. Revenues for the quarter rose to Rs 64,479 crore, marking a 5.3% increase from the previous year.

CEO K Krithivasan expressed confidence in TCS's growth, with revenues surpassing $30 billion annually, highlighting the company's expertise in artificial intelligence and digital innovation as key strengths amid economic uncertainty. The firm emphasizes its commitment to assisting clients with core priorities amidst market challenges.

The report coincides with global economic tensions, particularly US-China tariffs, which, while not directly affecting Indian IT firms, could impact tech demand. Industry analysts remain optimistic about the increasing need for outsourcing and tech solutions despite potential slowdowns in US GDP growth and decision-making.

(With inputs from agencies.)