Letter from the CEO

Dear Shareholders,

I am pleased to share that in FY 2025, we achieved two extraordinary milestones crossing the US$30 billion mark in revenues and the US$20 billion mark in brand value. This success is a testament to the early investments we have made in strengthening client relationships, building intellectual property, deepening employee capabilities and expanding technology ecosystem. I am grateful to every stakeholder for contributing to our growth and success.

In a very challenging geopolitical and macro-economic environment, the company reported an annual revenue of ₹255,324 crore in FY 2025, growing 6.0% year-on-year (4.2% in constant currency). Growth Markets experienced strong demand across key industries, fueled by accelerated digital adoption and new client acquisitions. Governments invested significantly in digital public services, creating opportunities for TCS to drive large-scale transformation.

Our disciplined execution and operational rigor stood out again, as we delivered industry-leading margins of 24.3%, even as we accelerated investments in talent and expanded capabilities. Our net margin was at 19.0%. Earnings per share were at ₹134.19, a growth of 5.1%^[i] over the prior year.

Our customer-centric focus and commitment to long-term value creation is well recognized by our clients. We were ranked #1 for customer satisfaction in Europe for the 12th year in a row. The number of clients spending over US$100 Mn annually, increased to 64 in FY 2025.

The core values of Leading Change, Integrity, Respect for Individual, Excellence and Learning & Sharing strongly bind and unify our 607,979 associates globally. TCS continues to strengthen its brand and has received over 100 awards for its HR practices. Our AI-First approach significantly advanced talent management, learning, and employee engagement. This has led to industry leading retention rates with LTM attrition in IT services at 13.3%.

Our capital allocation policy of returning substantial free cashflow to shareholders has been very consistent. The Board has recommended a final dividend of ₹30 per share, bringing the total dividend for the year to ₹126 per share. For the full year, the company’s shareholder payout was ₹45,588 crore, with a payout ratio of 94%.

We reported a robust Total Contract Value (TCV) of US$ 39.4 billion. This TCV included a balanced mix of large, medium and small deals, which augurs well for the future. We saw TCV improvement across markets as clients prioritized initiatives around technology modernization, cost optimization, vendor consolidation, operating model transformation, and risk and compliance. We remain closely connected to our customers to help them navigate the challenges impacting their business.

For example, we were selected by Primark, a leading international fashion retailer across 17 countries in Europe and the US, to transform their technology operations to support the retailer’s ambitious plans for global growth over the next five years.

We are also partnering with Xerox in its re-invention strategy, accelerating its transition to a streamlined, services-led, and software-enabled organization. TCS will consolidate Xerox’s technology services to enhance business outcomes, migrate complex legacy data centers to the Azure public cloud, implement a cloud-based Digital ERP platform to revolutionize business processes, and integrate GenAI into operations to foster sustainable growth.

Across industries, clients are increasingly shifting their focus from use case based approach to ROI led scaling of AI. We support them by:

Establishing AI Centers of Excellence for scalable Enterprise AI strategies
Creating AI Labs for technology experimentation with clients
Building safe, secure, scalable GenAI as a Service Platforms
Providing domain AI solutions for business operations with over 150 AI agents
Delivering GenAI-infused services for Software Engineering, IT operations, Technology Modernization, and Cyber Security
Setting up sovereign secure Cloud with integrated AI

Significant innovation is happening in the AI ecosystem across infrastructure, data platforms, models and AI native business applications. These innovations are forcing companies to invest in technology modernization and rapidly adopt AI to meet evolving customer expectations.

Our focus on innovation and growth drives us to continuously explore new technologies and business models, ensuring we stay ahead in an ever-evolving landscape.

Given the industry shifts led by AI and the opportunity to drive significant long-term growth, we have announced two key organizational changes effective 1st May 2025. Aarthi Subramanian has joined as President and Chief Operating Officer, working closely with me to help chart the future of our company. We are also pleased to welcome Mangesh Sathe as our new Chief Strategy Officer. Both Aarthi and Mangesh are seasoned, respected leaders whose expertise and vision will play a pivotal role in strengthening our growth journey, refining our organizational structure, and enhancing our operational excellence.

We remain steadfast in our commitment to delivering value to all stakeholders and setting new benchmarks in the IT services industry.

We thank you for your continued support and trust in our journey.

Best regards,

K Krithivasan
Chief Executive Officer and Managing Director

^[i]excluding legal settlement of claim of FY 2024

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