BENGALURU: Tata Consultancy Services (TCS) on Thursday surpassed Street estimates and posted a 5.9% increase in its consolidated net profit for the quarter ended June 2025 at Rs 12,760 crore compared to Rs 12,040 crore in the same quarter last year. The company's revenues in the June quarter stood at Rs 63,437 crore, up 1.3% y-o-y.
K Krithivasan, Chief Executive Officer and Managing Director, said “The continued global macro-economic and geo-political uncertainties caused a demand contraction. On the positive side, all the new services grew well. We saw robust deal closures during this quarter."
The company's Q1 total contract value (TCV) stood at $9.4 billion. Its operating margin was at 24.5% and net margin stood at 20.1%, up 90 bps y-o-y.
"We remain closely connected to our customers to help them navigate the challenges impacting their business, through cost optimization, vendor consolidation and AI-led business transformation," the CEO added.
Aarthi Subramanian, Executive Director - President and Chief Operating Officer, TCS said “Across industries, clients are increasingly shifting their focus from use case based approach to ROI led scaling of AI. We are investing across the AI ecosystem including infrastructure, data platform solutions, AI agents and business applications."
While BFSI witnessed 1% y-o-y growth, the life sciences and healthcare segment de-grew 9.6% y-o-y.
TCS expanded its workforce by adding 6,071 employees ( net) y-o-y and its attrition was at 13.8%. TCS' workforce stood at 6,13,069 as on June 30, 2025.
Milind Lakkad, Chief HR Officer, said “Talent Development is core to TCS. In this quarter, our associates invested 15 million hours in building expertise in emerging technologies, enabling them to lead the transformation journey for our customers. It is gratifying to note that TCS now has 114,000 people with higher order AI skills”.