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A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
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Revenue
₹64,259 Cr
verified against source
Revenue YoY
7.6%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
TCS reported Q2 FY25 revenue of INR 64,259 crore, up 7.6% YoY, with constant currency growth of 5.5%. Operating margin declined 60bps sequentially to 24.1%, impacted by a large transformational project and talent investments. BFSI showed signs of recovery, especially in North America, while life sciences and healthcare faced client-specific headwinds expected to stabilize by Q3. Deal TCV was $8.6 billion, with a strong pipeline near all-time highs. Management remains cautiously optimistic on discretionary spend recovery but flagged near-term pressure in manufacturing and telecom. Key risk: client-specific scope reductions and prolonged macro uncertainty could delay growth acceleration.
Colored figures show movement against the previous available record.
Guidance to track
- Client-specific headwinds in life sciences and healthcare are expected to stabilize in Q3 and return to growth in Q4.
- The BSNL transformational program is at peak revenue; expected to remain at similar levels for one more quarter before tapering.
- Management aspires to exit Q4 FY25 at 26% operating margin, similar to Q4 FY24 exit.
- TCS is investing significantly in India, APAC, Latin America, and Middle East & Africa as sustainable long-term growth drivers.
Risks flagged
- A large life sciences client abruptly reduced scope, causing revenue decline. Recovery depends on client's future investment decisions.
- Telecom and manufacturing verticals face structural headwinds; telecom due to CapEx caution, manufacturing due to labor and supply chain issues.
- The BSNL deal revenue is at peak and expected to taper after Q3, potentially creating a growth headwind in H2.
- Growth markets have lower margins; scaling them may pressure overall margins until volumes improve.
Key quotes
- Our performance in this quarter demonstrated the resilience of our diversified portfolio amidst an uncertain geopolitical situation.
- We'd like to get to 26%-28% or nearer to 26% as soon as possible. I'd be really happy if we can exit this year Q4 also at 26.
- GenAI conversations are fueling an increase in conversation around traditional AI and automation.
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