TCS Starts FY2025 on a Strong Note with Broad-Based Growth

TCS Q1FY25: Emerging markets steer growth, AI pipeline swells to $1.5 bn

Tata Consultancy Services kicked off the financial year 2025 with a revenue of US$7.51 billion in its first quarter. Here are the key takeaways from the Q1FY25 results.

1. All-round growth across markets

TCS reports a strong start to the new fiscal year with all-round growth across industries and markets. Emerging markets, especially India, Latin America and the MEA region, saw double-digit growth, with India achieving a remarkable 61.8 percent growth. Overall, all major markets returned to sequential growth. The manufacturing industry led the charge with 9.4% constant currency growth Y-o-Y, followed by energy, resources and utilities (5.7%) and life sciences and healthcare (4%). The banking segment within with the BFSI industry saw growth, with the North American market driving growth for the industry.

2. AI, Cloud and Cybersecurity continue to lead growth

AI.Cloud, Cyber Security and Enterprise Solutions led the growth this quarter. TCS launched new labs, Centers of Excellence and Delivery Centers focusing on AI, IoT (Internet of Things) and Digital Engineering in different parts of the world. TCS has maintained strong growth, with clients prioritizing AI infused Cloud adoption. This quarter, over 270 AI/GenAI engagements have been deployed or are in various stages of progress. The AI deal pipeline, which was at $900 million last quarter, has grown to $1.5 billion.

3. Deal pipeline continues to be strong

“Our qualified and total pipeline continues to be at an all-time high,” said K Krithivasan, Chief Executive Officer and Managing Director, TCS. On the other hand, with a TCV of $8.3 billion, TCS was well within its comfortable range of $7-9 billion.

4. Headcount surges, attrition trends down

TCS saw a net addition of over 5,000 employees this quarter, bringing the total headcount to 606,998. Nearly 11,000 freshers have been onboarded in this quarter. Notably, attrition further trends down to 12.1%. “Our continued focus on employee engagement and development led to industry-leading retention and strong business performance, with the net headcount addition being a matter of immense satisfaction,” said Milind Lakkad, Chief Human Resource Officer.

5. Margin expansion despite salary hikes highlights operational excellence

TCS achieved strong operating margin performance despite salary hikes, validating its operational excellence. “We remain focused on making the right investments in R&I and talent, strengthening our superior return ratios and creating long term value for our stakeholders,” said Samir Seksaria, Chief Financial Officer.

Q1FY25 in 100 seconds

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Key insights from TCS’ Q1FY25

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TCS is here to make a difference through technology.

We’re in it for good, driving positive change for the benefit of all.

Extraordinary expertise leads to remarkable results.

Want to be a global change-maker? Join our team.

Find the latest news about TCS in our Newsroom

Recent Press releases

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TCS works hand in hand with world-leading investors.

TCS Starts FY2025 on a Strong Note with Broad-Based Growth

TCS Q1FY25: Emerging markets steer growth, AI pipeline swells to $1.5 bn

Q1FY25 in 100 seconds

Key insights from TCS’ Q1FY25

Key takeaways

Key Geographies

Key Verticals

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Learn more about TCS

TCS is here to make a difference through technology.

We’re in it for good, driving positive change for the benefit of all.

Extraordinary expertise leads to remarkable results.

Want to be a global change-maker? Join our team.

Find the latest news about TCS in our Newsroom

Recent Press releases

Recent News

Recent recognitions

Upcoming events

TCS works hand in hand with world-leading investors.

TCS Q1FY25: Emerging markets steer growth, AI pipeline swells to $1.5 bn

Q1FY25 in 100 seconds

Key insights from TCS’ Q1FY25

Key takeaways

Key Geographies

Key Verticals

Subscribe to our investor updates

Learn more about TCS

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