ADD (Maintain) 

CMP: INR 3,247 Target Price: INR 3,680 (INR 3,880)  13% ICICI Securities Limited is the author and distributor of this report

11 April 2025 India | Equity Research | Results update

Tata Consultancy Services

Technology

Caught in macroeconomic flux: Underwhelming Q4 result, upbeat TCV

TCS’ Q4FY25 performance was a miss with regards to muted growth and margin. TCV was the silver lining, though down
7.5% YoY. Macro uncertainty has hit enterprise spending and the upbeat management commentary (in Q3FY25) has shifted
to a more cautious tone now. We believe Q4 earnings might be grimmer for rest of the IT peers given that TCS has lesser %
of revenue as discretionary vs peers. Despite management commentary that FY26 revenue growth will be better than FY25,
we see low FY26 discretionary demand, weighing down growth. We believe TCS is better placed vs peers to weather the
current macro storm, being the industry bellwether with best-in-class RoE and execution. We cut FY26-27E EPS slightly,
reiterate ADD with Mar’26E TP of INR 3,680 on attractive valuations (currently trading close to 5-year average - 2SD).

BSNL ramp-down impacts growth Ruchi Mukhija

TCS reported sequential revenue growth of -1%/ -0.8% USD/ CC, underperforming [email protected]
22 6807 7573
I-Sec and consensus estimates of -0.8%/ -0.3% USD/ CC for Q4FY25. For full year
Seema Nayak
FY25, revenue grew 3.8% /4.2% USD/ CC. Revenue growth was impacted by
[email protected]
macroeconomic volatility, project deferrals and lack of deal backfilling for BSNL Aditi Patil
ramp-down. With BSNL deal on its last leg, regional markets were down 6.4% [email protected]
QoQ USD, with seemingly no backfilling of projects. India geography revenue
declined USD 112mn QoQ. TCV stood at USD 12.2bn, sans any mega deals, vs
USD 10.2bn reported in Q3FY25, going above the usual quarterly run-rate of USD
7-9bn. Full year TCV stood at USD 39.4bn, down 8% YoY. North America/ BFSI/ Market Data
consumer business group TCV stood at USD 6.8/4/ 1.7bn, respectively. Market Cap (INR) 11,746bn
Market Cap (USD) 1,35,474mn
Margins impacted in Q4FY25 Bloomberg Code TCS IN
Reuters Code TCS.BO
TCS reported EBIT margin at 24.2%, down 30bps QoQ, in line with I-Sec’s estimate 52-week Range (INR) 4,520 /3,056
(24.4%), but falling lower than consensus estimate (24.7%). The margin fillip from Free Float (%) 28.0
BSNL deal ramp-down, higher utilization as well as rupee depreciation was offset ADTV-3M (mn) (USD) 120.3
by higher employee expense (+90bps), other expenses (+20bps), subcontracting
Price Performance (%) 3m 6m 12m
cost (at 4.8%; +20bps QoQ), marketing expenses (+60bps). FY25 EBIT margin
stood at 24.3%, down 30bps YoY. Company has delayed wage hike for FY26 amid Absolute (18.3) (22.4) (16.4)
Relative to Sensex (13.8) (13.2) (14.8)
escalated macro uncertainty. Headcount was up by 626 QoQ, similar to
Accenture’s muted headcount addition. FY26 will see similar to increased fresher
ESG Score 2023 2024 Change
hiring v/s FY25 with increased focus on skilling for and with AI.
ESG score 73.8 72.6 (1.2)
Environment 61.0 60.0 (1.0)
Financial Summary Social 76.6 73.2 (3.4)
Y/E March (INR mn) FY25A FY26E FY27E FY28E Governance 77.4 79.6 2.2
Net Revenue 25,53,240 26,62,565 28,50,796 29,92,408 Note - Score ranges from 0 - 100 with a higher
score indicating higher ESG disclosures.
EBITDA 6,74,070 7,19,204 7,73,452 8,06,755
Source: SES ESG, I-sec research
EBITDA Margin (%) 26.4 27.0 27.1 27.0
Net Profit 4,87,970 5,20,700 5,58,901 5,80,982
Earnings FY25E FY26E FY27E
EPS (Rs) 134.2 143.2 153.7 159.8
Revisions (%)
EPS % Chg YoY 6.9 6.7 7.4 4.0
Revenue (0.1) (0.1) (0.1)
P/E (x) 24.2 22.7 21.1 20.3
EBIT (0.3 0.7 (0.2)
EV/EBITDA (x) 17.3 16.2 15.1 14.5
EPS (0.6) (1.0) (1.6)
RoCE (%) 48.5 49.8 51.8 52.7
RoE (%) 50.8 52.0 54.0 54.8
Previous Reports
04-04-2025: Sector update
10-01-2025: Q3FY25 results review

Please refer to important disclosures at the end of this report

Tata Consultancy Services | Results update | 11 April 2025

Highlights
FY25- a muted year led by regional markets
TCS’ FY25 USD revenue growth was 3.8% vs 4.1% in FY24. The growth was led by
India, up 62.6% YoY CC, followed by 11.2% YoY growth in MEA. BFSI- up 0.7% YoY
and energy and utilities- up 5.1% YoY. Regional markets led the growth with 37.2%
YoY uptick. Communication & media was the laggard with 9.5% YoY revenue
contraction. EBIT margin at 24.3% was down 30bps YoY, with 200bps worth of impact
from wage hikes. Net margin was 19%. Full year TCV was USD 39.4bn, down 7.9%
YoY. FY25 saw net headcount addition of 6,433. Free cashflow stood at INR 464bn, up
4.9% YoY.

Mixed signals: management expects FY26 to be better than FY25

however delayed wage hike
• TCS saw second consecutive quarter of strong TCV with a good mix of small, mid
and large deals. As a result, management reiterated expectation that FY26 will be
better than FY25 (for international revenue). There is increased uncertainty in
global macroeconomic environment, resulting in a shift in management’s
commentary regarding discretionary spending. Management acknowledged
deferral of some projects in the month of March. Company has decided to delay
wage hike for FY26 amid escalated macro uncertainty. CEO called for perpetual
adaptability to perpetually changing business environment. Shift to cloud
migration continued.

• BFSI clients continued investments in compliance, digital modernisation, analytics

and customer experience. Insurance sector in US saw delayed decision making
with roll back of discretionary spending. Companies are prioritising cost
optimisation, and funding new technology updates such as adoption of AI, IoT with
savings from cost optimisation initiatives.

• Key demand areas are: S/4 HANA migration, implementation of gen AI,
automation of testing in SDLC, legacy modernisation, data modernisation, building
AI/ ML model, customer experience, digital transformation, AI adoption, (agentic AI
is the next frontier in AI, going beyond chatbots use cases), hyper personalisation.

• AI for business- a net positive: There is an increased demand for customer

servicing and experience enhancement led by AI. There is sharper focus on
business outcomes, moving away from just experimentation. Three key areas of
focus in AI are: 1) Industry specific AI-as clients want tailored solutions, 2) building
scale through strategic partnerships with hyperscalers and platforms and 3)
responsible AI. TCS is sharing AI productivity gains with clients but is gaining larger
share of client portfolio, resulting in a net positive impact on revenue.

Vertical colour
• Healthcare growth revived with QoQ print of -1% (vs. -4.5% in Q3FY25), as client-
specific issues subsided, marking the best performance in last four quarters.
Healthcare customers are moving cautiously with reassessment of deal timeline.
Manufacturing showed a subdued print of -1% (vs. -4% in Q3FY25), mostly on
continued weakness in auto and aerospace subsegments. Auto OEMs are seeing
weak demand as EV-fication slows down and inventory builds up. BFSI bounced
back with 1.3% sequential growth, in line with management’s upbeat commentary
on the vertical and ACN’s recent performance (Link); however, there was some
softness in insurance. Retail was weak at -1% QoQ. Technology vertical performed
well with 0.3% QoQ USD growth- one of the better performing verticals.
India | Institutional Equity Research 2
Tata Consultancy Services | Results update | 11 April 2025

Communication vertical saw some improvement in demand from vendor

consolidation. Energy & utilities vertical continues to grow well, up 0.8% QoQ USD.

Geography colour
• Europe with 1% QoQ USD growth, performed well on the back of large deal wins
from Q3FY25. Americas showed muted performance at -0.2% QoQ growth. Middle
East and Africa grew well.

Miscellaneous
• Book-to-bill ratio improved at 1.6x vs 1.4x in Q3FY25.

• Attrition stood at 13.3%, up 30bps QoQ.

• Ignio saw 30 new deal wins and 11 go-lives, led by AI demand. Ignio has code
accelerator to reduce coding efforts of TCS, increasing coding efficiency by 150%.
BaNCs had four new wins and four go-lives.

• USD 1/5/20 mn+ client buckets grew 23/1/4 QoQ. USD 100mn bucket remained
constant while USD 10mn/50mn bucket saw four customers decline, each.

• The Board announced a final dividend of INR 30/sh for Q4FY25.

Key risks:
Sharp cutbacks in discretionary spending cuts, delayed backfilling of BSNL deal

Quarterly performance
(INR bn) Q4FY25 Q3FY25 QoQ Q4FY24 YoY
CC growth -0.8% 0.0% 1.1%
Sales (USD m) 7,465 7,539 -1.0% 7,363 1.4%
USD/INR 86.4 84.4 2.3% 83.2 3.9%
Sales (INR bn) 645 640 0.8% 612 5.3%
EBIT 156 157 -0.4% 159 -2.0%
EBIT Margin 24.2% 24.5% -28 bps 26.0% -179 bps
Reported PAT 122 124 -1.3% 124 -1.6%
EPS 33.8 34.2 -1.3% 34.0 -0.8%
Source: I-Sec research, Company data

TCS – change in estimates

New Old New vs. Old
FY25A FY26E FY27E FY25E FY26E FY27E FY25A/E FY26E FY27E
Revenues (USD mn) 30,179 30,746 32,395 30,194 30,784 32,438 0.0% -0.1% -0.1%
Revenue growth YoY CC 4.2% 2.6% 5.4% 4.4% 3.0% 5.4% -10bps -30bps 0bps
Revenue growth YoY USD 3.8% 1.9% 5.4% 3.8% 2.0% 5.4% 0bps -10bps 0bps
USD/INR 84.6 86.6 88.0 84.66 86.60 88.00 -0.1% 0.0% 0.0%
INR bn
Revenues 2,553 2,663 2,851 2,556 2,666 2,855 -0.1% -0.1% -0.1%
EBIT 622 666 716 624 662 718 -0.3% 0.7% -0.2%
EBIT margin 24.3% 25.0% 25.1% 24.4% 24.8% 25.1% -10bps 20bps 0bps
EPS (INR/share) 134.2 143.2 153.7 135.0 144.6 156.3 -0.6% -1.0% -1.6%
Source: I-Sec research, Company data

India | Institutional Equity Research 3

Tata Consultancy Services | Results update | 11 April 2025

Margin headwinds: 1) -90bps from higher employee costs; 2)- 20bps from other expenses 3) -20bps from
higher subcontracting costs
Cost line items Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25
COGS
Employee costs 44.89% 43.51% 43.27% 44.29% 45.97% 45.85% 44.48% 45.12% 45.97% 45.55% 44.37% 45.27%
Fees to External Consultants 9.67% 9.63% 9.18% 8.23% 7.39% 6.83% 6.14% 4.57% 4.03% 4.37% 4.40% 4.51%
Travel 0.81% 0.86% 0.78% 0.77% 0.83% 0.85% 0.80% 0.94% 0.98% 0.95% 0.86% 0.87%
Cost of equipment and
software licenses 0.41% 0.73% 1.10% 1.05% 0.85% 0.77% 1.94% 2.55% 3.44% 5.03% 5.50% 4.26%
Other costs 5.80% 5.78% 5.61% 5.51% 5.44% 5.61% 5.85% 5.68% 5.74% 5.92% 6.06% 6.31%
SG&A costs
Employee costs 12.59% 12.61% 12.49% 12.65% 13.22% 12.99% 12.83% 12.27% 12.19% 11.50% 11.83% 11.74%
Fees to External Consultants 0.35% 0.33% 0.23% 0.33% 0.33% 0.36% 0.41% 0.29% 0.23% 0.28% 0.25% 0.26%
Travel 0.25% 0.32% 0.47% 0.47% 0.51% 0.30% 0.33% 0.39% 0.36% 0.32% 0.28% 0.41%
Other costs 2.14% 2.23% 2.33% 2.21% 2.30% 2.18% 2.20% 2.20% 2.41% 2.03% 1.98% 2.17%
Source: I-Sec research, Company data

Stellar deal TCV at USD 12.2bn, up 19.6% QoQ/down 7.6% YoY

14 TCV (USD bn) TCV YoY 50%

12 40%
30%
10
20%
8 10%
6 0%
-10%
4
-20%
11.3

10.2
11.2

13.2

10.2
12.2
2 -30%
5.7
6.4

8.9
6.9
8.6
6.8
9.2
8.1
7.6
7.6

8.2
8.1
7.8

8.1

8.3
8.6
10
6

0 -40%
Q2FY20
Q3FY20
Q4FY20
Q1FY21
Q2FY21

Q4FY21
Q1FY22
Q2FY22
Q3FY22
Q4FY22
Q1FY23
Q2FY23
Q3FY23
Q4FY23
Q1FY24
Q2FY24
Q3FY24
Q4FY24
Q1FY25
Q2FY25
Q3FY25
Q4FY25
Q1FY20

Q3FY21

Source: I-Sec research, Company data

Deal win ramp-up 20% QoQ, down 8% YoY

Deal TCV (USD mn) Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25
Total Deal TCV 8200 8100 7800 10000 10200 11200 8100 13200 8300 8600 10200 12200
QoQ -27% -1% -4% 28% 2% 10% -28% 63% -37% 4% 19% 20%
YoY 1% 7% 3% -12% 24% 38% 4% 32% -19% -23% 26% -8%
BFSI 2600 2300 2500 3000 3000 3000 2600 4100 2700 2900 3200 4000
QoQ -19% -12% 9% 20% 0% 0% -13% 58% -34% 7% 10% 25%
YoY 18% 10% -14% -6% 15% 30% 4% 37% -10% -3% 23% -2%
Retail 1000 1600 1200 1300 1200 1440 1500 1600 1100 1200 1300 1700
QoQ -62% 60% -25% 8% -8% 20% 4% 7% -31% 9% 8% 31%
YoY -33% 33% 20% -50% 20% -10% 25% 23% -8% -17% -13% 6%
North America 4500 4300 4200 5000 5200 4500 4200 5700 4600 4200 5900 6800
QoQ -26% -4% -2% 19% 4% -13% -7% 36% -19% -9% 40% 15%
YoY 13% 10% -7% -18% 16% 5% 0% 14% -12% -7% 40% 19%
Source: I-Sec research, Company data

Growth led by Europe and emerging markets (India, LAT-Am and MEA)
YoY CC Revenue Growth Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25
North America 17.6% 15.4% 9.6% 4.6% 0.1% -3.0% -2.3% -1.1% -2.1% -2.3% -1.9%
Latin America 19.0% 14.6% 15.1% 13.5% 13.1% 13.2% 9.8% 6.3% 6.8% 7.0% 4.3%
UK 14.8% 15.4% 17.0% 16.1% 10.7% 8.1% 6.2% 6.0% 4.6% 4.1% 1.2%
Continental Europe 14.1% 9.7% 8.4% 3.4% 1.3% 0.5% -2.0% 0.9% 1.8% -1.5% 1.4%
India 7.0% 9.1% 13.4% 14.0% 3.9% 23.4% 37.9% 61.8% 95.2% 70.2% 33.0%
Asia Pacific 16.7% 9.5% 7.5% 4.7% 4.1% 3.9% 5.2% 7.6% 7.5% 5.8% 6.4%
MEA 8.2% 8.6% 7.8% 15.2% 15.9% 16.0% 10.7% 8.5% 7.9% 15.0% 13.2%
Total 15.4% 13.5% 10.7% 7.0% 2.8% 1.7% 2.2% 4.4% 5.5% 4.5% 2.5%
Source: I-Sec research, Company data

India | Institutional Equity Research 4

Tata Consultancy Services | Results update | 11 April 2025

Growth led by regional markets; BFSI sees improvement

YoY CC Revenue growth Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25
BFSI 13.1% 11.1% 9.1% 3.0% -0.5% -3.0% -3.2% -0.9% 0.1% 0.9% 2.5%
Retail & CPG 22.9% 18.7% 13.0% 5.3% 1.0% -0.3% -0.3% -0.3% 0.1% 1.1% -0.2%
Communication & Media 18.7% 13.5% 5.3% 0.5% -2.1% -4.9% -5.5% -7.4% -10.3% -10.6% -9.8%
Manufacturing 14.5% 12.5% 9.1% 9.4% 5.8% 7.0% 9.7% 9.4% 5.3% 0.4% -2.9%
Life Science & Healthcare 14.5% 14.4% 12.3% 10.1% 5.0% 3.1% 1.7% 4.0% 0.1% -4.3% -5.6%
Technology & Services 15.9% 13.6% 9.2% 4.4% -2.2% -5.0% -5.6% -3.9% -1.9% -0.4% 1.1%
Regional Markets & Others 13.1% 13.3% 14.6% 16.9% 14.3% 19.2% 26.0% 37.7% 50.4% 40.9% 22.5%
Total 15.4% 13.5% 10.7% 7.0% 2.8% 1.7% 2.2% 4.4% 5.5% 4.5% 2.5%
Source: I-Sec research, Company data

Weak QoQ show by regional markets with lack of backfill for BSNL deal
ramp-down

Vertical revenue growth QoQ USD

2% 1.3%
1%
0%
-1%
-2% -1.0% -1.0% -1.0% 0.3% -1.0% -1.0%
-3%
-4%
-5%
-6%
-7%
-6.4% Corporate
Mfg

Healthcare

Tech Services

Comm & media

Retail & CPG
BFSI
Regional Markets

average

Life Sc &
& Others

Source: I-Sec research, Company data

Headcount up by 625 QoQ

Net headcount addition

40000
35000
30000
25000
20000
15000
10000
5000
0
-5000
-10000
Q4FY17

Q2FY18

Q4FY18

Q2FY19

Q4FY19

Q2FY20

Q4FY20

Q2FY21

Q2FY22

Q4FY22

Q2FY23

Q4FY23

Q2FY24

Q4FY24

Q2FY25

Q4FY25
Q4FY21

Source: Company data, I-Sec research

India | Institutional Equity Research 5

Tata Consultancy Services | Results update | 11 April 2025

TCS is trading at 21.7x, vs. its 5-year average of 27.7x

TCS
P/E 1SD -1SD 5yr Avg 2SD -2SD
38
34
30
26
22
18
14
10
6 Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

Apr-12

Apr-13

Apr-14

Apr-15

Apr-16

Apr-17

Apr-18

Apr-19

Apr-20

Apr-21

Apr-22

Apr-23

Apr-24

Apr-25
Oct-07

Oct-08

Oct-09

Oct-10

Oct-11

Oct-12

Oct-13

Oct-14

Oct-15

Oct-17

Oct-18

Oct-19

Oct-21

Oct-22

Oct-23
Oct-16

Oct-20

Oct-24
Source: Company data, I-Sec research

TCS is trading roughly at par with NIFTY IT vs. 5- year average

premium of 10.8%

TCS premium/discount vs NIFTY IT Average

50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

Apr-12

Apr-13

Apr-14

Apr-15

Apr-16

Apr-17

Apr-18

Apr-19

Apr-20

Apr-21

Apr-22

Apr-23

Apr-24

Apr-25
Oct-07

Oct-08

Oct-09

Oct-10

Oct-11

Oct-12

Oct-13

Oct-14

Oct-15

Oct-16

Oct-17

Oct-18

Oct-19

Oct-20

Oct-21

Oct-22

Oct-23

Oct-24
Source: I-Sec research, Company data

Shareholding pattern Price chart

% Jun‘24 Sep‘24 Dec‘24 5000

Promoters 71.8 71.8 71.8 4500

Institutional investors 23.5 23.7 23.5 4000
(INR)

MFs and others 4.3 4.3 4.3 3500

FIs/Banks 0.6 0.6 0.6
3000
Insurance 6.1 6.0 5.8
2500
FIIs 12.5 12.8 12.8
Oct-22

Oct-23

Oct-24
Jul-22

Jul-23

Jul-24

Apr-25
Apr-22

Apr-23

Jan-24

Apr-24
Jan-23

Jan-25

Others 4.7 4.5 4.7

Source: Bloomberg, I-Sec research Source: Bloomberg, I-Sec research

India | Institutional Equity Research 6

Tata Consultancy Services | Results update | 11 April 2025

Financial Summary
Profit & Loss Cashflow statement
(INR mn, year ending March) (INR mn, year ending March)

FY25A FY26E FY27E FY28E FY25A FY26E FY27E FY28E

Net Sales (USD mn) 30,179 30,746 32,395 34,005 CFO before WC changes 6,71,630 7,16,444 7,70,692 8,03,995
Net Sales (INR mn) 25,53,240 26,62,565 28,50,796 29,92,408 CFO after WC changes 6,67,680 6,85,781 7,30,575 7,72,501
Operating Expense 19,31,590 19,96,612 21,34,360 21,70,027 Capital Commitments (29,170) (57,251) (61,016) (63,848)
EBITDA 6,74,070 7,19,204 7,73,452 8,06,755 Free Cashflow 5,40,990 5,64,806 6,00,289 6,37,489
EBITDA Margin (%) 26.4 27.0 27.1 27.0 Other investing cashflow (27,590) 32,974 33,766 32,935
Depreciation & Amortization 52,420 53,251 57,016 59,848 Cashflow from Investing
(56,760) (24,278) (27,250) (30,913)
EBIT 6,21,650 6,65,953 7,16,436 7,46,907 Activities
Interest expenditure - - - - Issue of Share Capital 280 2,760 2,760 (18,948)
Other Non-operating Interest Cost - - - -
31,660 32,974 33,766 32,935
Income Inc (Dec) in Borrowings (16,640) 10,657 6,402 5,091
Recurring PBT 6,53,310 6,98,927 7,50,202 7,79,842 Cash flow from
(4,65,980) (4,71,396) (5,19,066) (5,52,939)
Profit / (Loss) from Financing Activities
- - - -
Associates Dividend paid (4,48,640) (4,84,812) (5,28,228) (5,39,082)
Less: Taxes 1,65,340 1,78,226 1,91,302 1,98,860 Others (980) - - -
PAT 4,87,970 5,20,700 5,58,901 5,80,982 Chg. in Cash & Bank
(10,920) 11,881 (7,043) (10,211)
Less: Minority Interest (2,440) (2,760) (2,760) (2,760) balance
Net Income (Reported) 4,87,970 5,20,700 5,58,901 5,80,982 Closing cash & balance 79,240 95,301 88,258 78,047
Extraordinaries (Net) - - - -
Source Company data, I-Sec research
Recurring Net Income 4,85,530 5,17,940 5,56,141 5,78,222
Source Company data, I-Sec research
Key ratios
(Year ending March)
Balance sheet
(INR mn, year ending March)
FY25A FY26E FY27E FY28E
Per Share Data (INR)
FY25A FY26E FY27E FY28E Reported EPS 134.2 143.2 153.7 159.8
Total Current Assets 12,30,110 12,82,234 13,27,082 13,58,137 Diluted EPS 134.2 143.2 153.7 159.8
of which cash & cash eqv. 83,420 95,301 88,258 78,047 Cash EPS 148.7 157.9 169.5 176.4
Total Current Liabilities & Dividend per share (DPS) 126.0 134.0 146.0 149.0
5,30,010 5,50,246 5,68,421 5,83,284
Provisions Book Value per share (BV) 267.8 276.9 284.6 289.5
Net Current Assets 7,00,100 7,31,988 7,58,661 7,74,853 Dividend Payout (%) 93.9 93.6 95.0 93.2
Investments 2,750 2,750 2,750 2,750
Net Fixed Assets 1,29,320 1,33,320 1,37,320 1,41,320 Growth (%)
ROU Assets 92,750 92,750 92,750 92,750 Net Sales 6.0 4.3 7.1 5.0
Capital Work-in-Progress - - - - EBITDA 4.9 6.7 7.5 4.3
Goodwill 40,240 40,240 40,240 40,240 EPS 6.9 6.7 7.4 4.0
Other assets 1,12,980 1,12,980 1,12,980 1,12,980
Liabilities Valuation Ratios (x)
Total Assets 10,87,540 11,23,428 11,54,101 11,74,293 P/E 24.2 22.7 21.1 20.3
Borrowings - - - - P/CEPS 21.8 20.6 19.2 18.4
Deferred Tax Liability 9,800 9,800 9,800 9,800 P/BV 12.1 11.7 11.4 11.2
provisions - - - - EV / EBITDA 17.3 16.2 15.1 14.5
other Liabilities 20,390 20,390 20,390 20,390 P/S 4.6 4.4 4.1 3.9
Minority Interest 10,150 12,910 15,670 18,430 Dividend Yield (%) 3.9 4.1 4.5 4.6
Equity Share Capital 3,620 3,620 3,620 3,620
Reserves & Surplus* 9,65,200 9,98,328 10,26,241 10,43,673 Operating Ratios
Total Net Worth 9,68,820 10,01,948 10,29,861 10,47,293 EBITDA Margins (%) 26.4 27.0 27.1 27.0
Total Liabilities 10,87,540 11,23,428 11,54,101 11,74,293 EBIT Margins (%) 24.3 25.0 25.1 25.0
Source Company data, I-Sec research Effective Tax Rate (%) 25.3 25.5 25.5 25.5
Net Profit Margins (%) 19.1 19.6 19.6 19.4
Quarterly trend
(INR mn, year ending March) Inventory Turnover Days - - - -
Fixed Asset Turnover (x) 21.1 20.3 21.1 21.5
Jun-24 Sep-24 Dec-24 Mar-25 Receivables Days 68 71 70 70
Net Sales 6,26,130 6,42,590 6,39,730 6,44,790 Payables Days 17 20 19 20
% growth (YOY) 5.4 7.7 5.6 5.3 Working Capital Days 85 86 84 83
EBITDA 1,66,620 1,67,320 1,70,330 1,69,800 Net Debt / EBITDA (x) (1.6) (1.8) (1.5) (1.3)
Margin % 26.6 26.0 26.6 26.3
Other Income 7,890 5,670 10,090 8,010 Profitability Ratios
Extraordinaries 0 0 1 2 RoCE (%) 48.5 49.8 51.8 52.7
Adjusted Net Profit 1,20,400 1,19,090 1,23,800 1,22,240 RoIC (%) 58.4 60.5 62.3 62.7
Source Company data, I-Sec research RoNW (%) 50.8 52.0 54.0 54.8
Source Company data, I-Sec research

India | Institutional Equity Research 7

Tata Consultancy Services | Results update | 11 April 2025

This report may be distributed in Singapore by ICICI Securities, Inc. (Singapore branch). Any recipients of this report in Singapore should contact ICICI Securities, Inc.
(Singapore branch) in respect of any matters arising from, or in connection with, this report. The contact details of ICICI Securities, Inc. (Singapore branch) are as follows:
Address: 10 Collyer Quay, #40-92 Ocean Financial Tower, Singapore - 049315, Tel: +65 6232 2451 and email: [email protected],
[email protected] and [email protected].

"In case of eligible investors based in Japan, charges for brokerage services on execution of transactions do not in substance constitute charge for research reports and
no charges are levied for providing research reports to such investors."

New I-Sec investment ratings (all ratings based on absolute return; All ratings and target price refers to 12-month performance horizon, unless mentioned otherwise)
BUY: >15% return; ADD: 5% to 15% return; HOLD: Negative 5% to Positive 5% return; REDUCE: Negative 5% to Negative 15% return; SELL: < negative 15% return

ANALYST CERTIFICATION
I/We, Ruchi Mukhija, CA; Seema Nayak, MBA; Aditi Patil, MBA; authors and the names subscribed to this report, hereby certify that all of the views expressed in this research
report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensati on was, is, or will be directly or indirectly related to
the specific recommendation(s) or view(s) in this report. Analysts are not registered as research analysts by FINRA and are not associated persons of the ICICI Securities Inc.
It is also confirmed that above mentioned Analysts of this report have not received any compensation from the companies menti oned in the report in the preceding twelve
months and do not serve as an officer, director or employee of the companies mentioned in the report.
Terms & conditions and other disclosures:
ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial
products. Registered Office Address: ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025. CIN: L67120MH1995PLC086241, Tel: (91 22) 6807
7100. ICICI Securities is Sebi registered stock broker, merchant banker, investment adviser, portfolio manager, Research Analyst and Alternative Investment Fund. ICICI
Securities is registered with Insurance Regulatory Development Authority of India Limited (IRDAI) as a composite corporate agent and with PFRDA as a Point of Presence.
ICICI Securities Limited Research Analyst SEBI Registration Number – INH000000990. ICICI Securities Limited SEBI Registration is INZ000183631 for stock broker. ICICI
Securities AIF Trust’s SEBI Registration number is IN/AIF3/23-24/1292 ICICI Securities is a subsidiary of ICICI Bank which is India’s largest private sector bank and has its
various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capit al fund management, etc. (“associates”),
the details in respect of which are available on www.icicibank.com.
ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates
might have investment banking and other business relationship with a significant percentage of companies covered by our Investment Research Department. ICICI Securities
and its analysts, persons reporting to analysts and their relatives are generally prohibited from maintaining a financial interest in the securities or derivatives of any companies
that the analysts cover.
Recommendation in reports based on technical and derivative analysis centre on studying charts of a stock's price movement, o utstanding positions, trading volume etc as
opposed to focusing on a company's fundamentals and, as such, may not match with the recommendation in fundamental reports. Investors may visit icicidirect.com to view
the Fundamental and Technical Research Reports.
Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein.
ICICI Securities Limited has two independent equity research groups: Institutional Research and Retail Research. This report has been prepared by the Institutional Research.
The views and opinions expressed in this document may or may not match or may be contrary with the views, estimates, rating, and target price of the Retail Research.
The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and information contained herein
is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other
person or to the media or reproduced in any form, without prior written consent of ICICI Securities. While we would endeavour to update the information herein on a reasonable
basis, ICICI Securities is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI
Securities from doing so. Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable
regulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be acting in an advisory capacity to this company, or in certain other circumstances.
This report is based on information obtained from public sources and sources believed to be reliable, but no independent veri fication has been made nor is its accuracy or
completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of
offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report
at the same time. ICICI Securities will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting
and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed
in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of
specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment
risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securities accepts no liabilities
whatsoever for any loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a gu ide to future performance. Investors are advised
to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Actual results may differ materially from those set forth in
projections. Forward-looking statements are not predictions and may be subject to change without notice.
ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject
company for any other assignment in the past twelve months.
ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date
of this report for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other
advisory service in a merger or specific transaction.
ICICI Securities or its associates might have received any compensation for products or services other than investment bankin g or merchant banking or brokerage services
from the companies mentioned in the report in the past twelve months.
ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its associates or
its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report.
Accordingly, neither ICICI Securities nor Research Analysts and their relatives have any material conflict of interest at the time of publication of this report.
Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
ICICI Securities or its subsidiaries collectively or Research Analysts or their relatives do not own 1% or more of the equity securities of the Company mentioned in the report
as of the last day of the month preceding the publication of the research report.
Since associates of ICICI Securities and ICICI Securities as a entity are engaged in various financial service businesses, they might have financial interests or actual/ beneficial
ownership of one percent or more or other material conflict of interest in various companies including the subject company/companies mentioned in this report.
ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.
Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report.
We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities.
This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction,
where such distribution, publication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing
requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose
possession this document may come are required to inform themselves of and to observe such restriction.
This report has not been prepared by ICICI Securities, Inc. However, ICICI Securities, Inc. has reviewed the report and, in so far as it includes current or historical information,
it is believed to be reliable, although its accuracy and completeness cannot be guaranteed.

India | Institutional Equity Research 8

Tata Consultancy Services | Results update | 11 April 2025

Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. None of the
research recommendations promise or guarantee any assured, minimum or risk free return to the investors.
Name of the Compliance officer (Research Analyst): Mr. Atul Agrawal, Contact number: 022-40701000, E-mail Address : [email protected]
For any queries or grievances: Mr. Bhavesh Soni Email address: [email protected] Contact Number: 18601231122

India | Institutional Equity Research 9