Letter from the Chairman

Dear Shareholders,

The financial year 2025 was a year of profound global disruption. Widespread geopolitical conflicts, military escalations, and uncertain trade dynamics severely impacted global supply chains. Over 60 nations went to the polls, stalling policy continuity and reform agendas across several key markets. As a result, businesses worldwide faced significant shocks— ranging from falling production volumes and rising costs to suboptimal asset utilization, impacting profitability and cash flows.

In the face of this turbulence, your company demonstrated exceptional resilience. We partnered closely with our clients to help them perform under pressure while accelerating their transformation agendas. By harnessing the power of Generative AI and other emerging technologies, we enabled our clients to prepare for the future. The range of transformation is multifaceted and truly profound.

For example, we worked with a client to develop a GenAI–based drug discovery solution that created over 1,300 molecules for a concept target, then assessed synthesizability and shortlisted 12 molecules undergoing in-vitro testing. For another client, we implemented a direct-to-consumer digital solution for the automotive industry, allowing a seamless omnichannel presence and customized vehicle ownership experience. In another case, we modernized 50 million lines of legacy code into a modern AI-powered architecture.

These efforts, alongside many others, contributed to a robust financial performance, with FY 2025 revenue of US $30 billion and an industry-leading operating margin of 24.3%. Your company was once again recognized as a Global Top Employer for the tenth successive year.

The evolving geopolitical landscape and the emergence of a multipolar world are now reshaping how global businesses operate. We are witnessing the rise of new paradigms, demanding a thorough reimagination of systems, processes, and technologies to improve visibility, reduce costs, and enhance operational throughput. This reimagination includes designing end-to-end traceability across supply chains; diversification of sourcing strategies to build resilience, and region-specific ecosystems to serve decentralized markets.

Simultaneously, we are in the midst of an irreversible transition towards green energy. While jurisdictions vary in pace and regulation, businesses must adapt by developing market-appropriate solutions. Nowhere is this more evident than in the automotive sector.

The single most transformative force in 2024 was Generative AI. GenAI is not just another tech cycle—it is a civilizational shift. I believe every industry stands to benefit from GenAI.

TCS is proactively leading this change. We have systematically infused AI across our offerings and built intelligent agent solutions throughout the value chain. Looking ahead, we will deliver solutions through a human+AI model, invest in AI infrastructure and forge industry-best partnerships.

Investments in wind, solar, and small modular reactors (SMRs) are surging, leading to the development of new factories, supply chains, and digital tools that optimize both generation and consumption of energy. Your company has developed an AI-powered clever energy platform that has been helping clients optimize energy consumption, reducing emissions and energy costs.

Yet, the single most transformative force in 2024 was Generative AI. Achieving near-human reasoning capabilities, GenAI is not just another tech cycle, it is a civilizational shift. Its widespread adoption is accelerating, powered by parallel advances in semiconductors, cloud computing, quantum technologies, robotics, and energy innovation. GenAI is already redefining analytics, customer experience, and marketing. The rise of autonomous robots and AI agents promises a future of ‘dark factories’ and AI-assisted enterprise functions.

I believe every industry stands to benefit from GenAI—and the IT industry is no exception. TCS is uniquely positioned to lead this transition. With our domain expertise, deep client relationships, and contextual knowledge, we are the ideal partner for enterprises seeking to build AI-first cultures, transform supply chains, navigate energy transitions, and build resilient and adaptive operations.

However, to lead in this new world, we too must continuously evolve. The path is clear: IT and business services are moving toward autonomous operations. Software development is being redefined by AI-led modernization, as legacy code is being transformed rapidly. Finally, agentic AI is being embedded deeply into enterprise systems.

TCS is proactively leading this change. We have systematically infused AI across our offerings and built intelligent agent solutions throughout the value chain. In 2025, we will have the largest AI-trained workforce in the industry and have launched our enterprise-grade GenAI platform: TCS WisdomNext^TM.

Looking ahead, we plan four distinct progressions. First, we establish a large pool of AI agents working alongside our human workforce. Second, we deliver solutions through a human+AI model. Third, we will consciously invest in AI data centers and cloud infrastructure. Fourth, we forge industry-best partnerships with hardware providers, solution innovators, and startups.

This integrated approach will help us bring the best capabilities to every customer, ensuring they are future-ready, resilient, and competitive. We remain steadfastly committed to leading the industry with purpose, innovation, and responsibility.

Thank you for your continued trust and support as we shape the future, together.

Warm regards,

N Chandrasekaran
Chairman

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