CMP: ₹3,501.00 | Market Cap: ₹12.8 Lakh Crore
👀 At a Glance
TCS just dropped its full-year FY25 report, and as always, it’s like your topper cousin flexing their report card at dinner — solid, predictable, and extremely annoying (for rivals). Net Profit for FY25 stands at ₹45,908 Cr, with revenues of ₹2,40,893 Cr. Operating margin? A respectable 24.6%. The company also declared a final dividend of ₹28 per share, because why not — it’s TCS.
🧾 About the Company
- Founded: 1968 (back when coding meant manually feeding punch cards)
- Headquarters: Mumbai, India
- Sector: IT Services, Consulting & Digital Transformation
- Parent: Tata Sons (owns ~72%)
- Global Presence: Over 55 countries, 600,000+ employees
- Clients: Fortune 500 companies, BFSI, Retail, Manufacturing, Pharma, Govt.
🧑💼 Key Managerial Personnel
| Name | Designation |
|---|---|
| K. Krithivasan | CEO and MD |
| Samir Seksaria | CFO |
| N. Ganapathy Subramaniam | COO |
| Rajesh Gopinathan | Former CEO (till 2023) |
📊 Financials (₹ in Cr)
| Particulars | FY25 | FY24 | YoY Growth |
|---|---|---|---|
| Revenue | 2,40,893 | 2,25,458 | +6.9% |
| EBIT | 59,208 | 52,252 | +13.3% |
| Net Profit (PAT) | 45,908 | 42,147 | +8.9% |
| EPS (₹) | 125.27 | 114.72 | +9.2% |
| Final Dividend | ₹28/share | ₹24/share | Upgraded |
| Total Dividend FY25 | ₹118/share | ₹115/share | Slightly Up |
📉 Q4 FY25 Snapshot
| Particulars | Q4 FY25 | Q4 FY24 | YoY Growth |
|---|---|---|---|
| Revenue | ₹61,237 Cr | ₹59,162 Cr | +3.5% |
| Net Profit | ₹12,435 Cr | ₹11,392 Cr | +9.1% |
| EBIT Margin | 25.0% | 23.2% | Expanded |
| Net Margin | 20.3% | 19.3% | Stable-ish |
💰 Balance Sheet Highlights
- Cash & Equivalents: ₹46,297 Cr (aka, small nations can borrow from TCS now)
- No long-term debt — because debt is for mortals.
- ROE: ~48% — mic drop.
- Reserves & Surplus: ₹1,35,873 Cr
🧮 Forward-Looking Fair Value (FV)
- Trailing EPS: ₹125.27
- Assumed P/E: 32x (IT major average)
- FV Estimate: ₹4,008
Verdict: Currently at ₹3,501, TCS trades at ~87% of fair value. Still not “cheap”, but rarely is.
🌍 Growth & Outlook
- Cloud, AI & Data: Driving growth in BFSI, Retail & Healthcare
- Deal Wins: 15 large deals in Q4; TCV of $11.2 billion
- Attrition: Controlled at 13.3% — WFH dreams still working
- Margins: Protected via cost discipline and currency tailwinds
- Risks: US slowdown, BFSI turbulence, and macro IT budget cuts
🧠 EduInvesting Take
TCS is that IIT topper who doesn’t drink, doesn’t party, but aces every semester and marries a CA. Boring? Yes. Reliable? Also yes.
- This is the kind of stock you buy, forget, and wake up richer.
- At ₹3,500, it’s not a multibagger from here — it’s a wealth preserver.
- If you want “up only” charts without stress, TCS is basically the LIC of your portfolio.
⚠️ Risks & Red Flags
- Growth rate is now low single-digit.
- Currency volatility could hit margins.
- BFSI exposure = vulnerable to global bank crises.
- AI automation might slowly commodify services.
🗓️ Published: May 27, 2025
✍️ By: Prashant Marathe
Tags: TCS, Q4 FY25 Results, Tata Group, IT Stocks, Krithivasan, Infosys Rival, Nifty 50, Dividend Stocks, IT Sector India
