Tata Consultancy Services Ltd (TCS) delivered what the Street had been eagerly awaiting—an optimistic demand outlook. The management of the IT services major highlighted early signs of recovery in discretionary demand across key sectors such as banking, financial services and insurance (BFSI), and consumer, during its December quarter (Q3FY25) earnings call. Additionally, decision-making for smaller projects has accelerated.
Unsurprisingly, TCS’s shares surged over 5% on the National Stock Exchange in early trading on Friday.
According to the management, demand recovery is attributed to easing inflation, the US Federal Reserve’s rate cut, and diminishing political uncertainties. Coupled with a robust order book, this is expected to sustain revenue growth momentum.
Total contract value (TCV) of deal wins stood at $10.2 billion in Q3FY25, reflecting a 26% year-on-year increase, achieved without the boost from mega deals. This suggests a resurgence in smaller-sized contracts, with the return of short-duration deals often serving as an early indicator of a revival in discretionary IT demand. TCS’s book-to-bill ratio stood at 1.35x.
Read this | IT: Forget Q3 results, focus on commentary
However, while the TCS management anticipates 2025 to be better than 2024, concerns about the company’s revenue growth outlook persist.
The Bharat Sanchar Nigam Ltd (BSNL) project is 70% over and its revenue contribution is likely to taper off in the next two-three quarters. TCS plans to backfill BSNL revenues, with growth next year expected to be driven by developed markets. But for now, revenue growth visibility for FY26 is hazy.
“We expect the BSNL deal to ramp down sharply after Q4FY25. The deal will contribute a 3.2% revenue growth in FY2025E, but will be a 3.6% growth headwind in FY2026E,” Kotak Institutional Equities said in a report dated 10 January.
The brokerage house has cautioned that TCS does not have enough deals yet to absorb the revenue loss estimated in FY26. “Overall, revenue growth in FY26 will look weak optically at 2.9% due to a 360 basis points headwind from BSNL,” added the report. On the positive side, the lower-margin BSNL project is seen as a margin tailwind in FY26.
Read this | Mint Primer | IT services: When will the tide turn?
As for Q3FY25 results, expectations were muted, as the quarter was seasonally weak, impacted by furloughs and fewer working days. TCS’s constant currency revenue growth was flat sequentially, and marginally below the consensus estimate of 0.4%. Key markets, including the US and Europe, reported subdued sequential revenue growth. In contrast, India and the MEA regions maintained strong momentum.
The management expects pain in the manufacturing vertical to bottom out in Q4, but the life sciences and healthcare vertical is expected to remain soft and an uptick in demand is expected once clarity emerges on the government policy in the US.
Earnings before interest and tax (Ebit) margin was in-line with expectations at 24.5%, up 40 basis points sequentially led by increase in utilization levels and cost control that offset headwinds from adverse portfolio mix and furloughs. The management continues to target a medium-term margin of 26–28%.
Meanwhile, in FY25 so far, the TCS stock has gained 8%, significantly underperforming the 26% surge in the Nifty IT index, due to weak TCV growth (below $9 billion) in recent quarters.
Also read | Indian IT services companies shed reliance on H-1B visas
Emkay Global Financial Services has trimmed its earnings per share estimate by 1-3%, factoring-in the Q3 miss and higher dividend payout. The brokerage house feels that the stock lacks a near-term trigger. TCS shares trade at FY26 price-to-earnings multiple of around 27 times, according to Bloomberg data. Though valuations have moderated, they don’t appear attractive yet as expectations of low single-digit organic revenue growth for FY25 and FY26 could weigh on investor confidence.
🎯 YouTube Tag Generator (Powered by Google Gemini)
⏳ Generating tags using Gemini API, please wait...
магазин аккаунтов социальных сетей аккаунт для рекламы
магазин аккаунтов https://marketplace-akkauntov-top.ru/
маркетплейс аккаунтов услуги по продаже аккаунтов
перепродажа аккаунтов маркетплейс аккаунтов
маркетплейс аккаунтов соцсетей https://prodat-akkaunt-online.ru/
безопасная сделка аккаунтов аккаунты с балансом
магазин аккаунтов маркетплейс для реселлеров
Website for Selling Accounts Buy and Sell Accounts
Find Accounts for Sale Account exchange
Buy and Sell Accounts Account Purchase
Website for Buying Accounts Secure Account Sales
Marketplace for Ready-Made Accounts Profitable Account Sales
Account Buying Service https://socialaccountsstore.com
Online Account Store Account Catalog
Website for Buying Accounts Marketplace for Ready-Made Accounts
Marketplace for Ready-Made Accounts Account Trading Service
Account Purchase Marketplace for Ready-Made Accounts
database of accounts for sale website for selling accounts
account purchase account exchange service
buy accounts account trading
verified accounts for sale account exchange
buy and sell accounts website for selling accounts
account purchase online account store
account trading platform account buying service
purchase ready-made accounts account exchange service
accounts market account buying platform
account trading platform account catalog
online account store sell accounts
buy pre-made account website for buying accounts
account store account trading
account buying service website for selling accounts
account store account store
account market sell pre-made account
purchase ready-made accounts secure account sales
ready-made accounts for sale sell accounts
account trading secure account sales
account selling platform profitable account sales
sell pre-made account social media account marketplace
account marketplace website for buying accounts
sell pre-made account find accounts for sale
account acquisition secure account purchasing platform
account selling platform account exchange service
verified accounts for sale sell account
secure account sales buy accounts
account acquisition sell account
buy and sell accounts accounts marketplace
account exchange service https://accounts-marketplace.xyz
gaming account marketplace account marketplace
guaranteed accounts https://social-accounts-marketplaces.live
secure account sales https://accounts-marketplace.live
buy and sell accounts https://social-accounts-marketplace.xyz
buy accounts https://buy-accounts.space
database of accounts for sale https://buy-accounts-shop.pro/
accounts for sale https://buy-accounts.live
buy account https://accounts-marketplace.online/
ready-made accounts for sale https://accounts-marketplace-best.pro
продажа аккаунтов akkaunty-na-prodazhu.pro
продать аккаунт https://rynok-akkauntov.top
магазин аккаунтов kupit-akkaunt.xyz
покупка аккаунтов https://akkaunt-magazin.online
маркетплейс аккаунтов соцсетей https://akkaunty-market.live/
купить аккаунт https://kupit-akkaunty-market.xyz/
купить аккаунт https://akkaunty-optom.live
маркетплейс аккаунтов online-akkaunty-magazin.xyz
продать аккаунт https://akkaunty-dlya-prodazhi.pro/
маркетплейс аккаунтов соцсетей https://kupit-akkaunt.online/
buy aged facebook ads accounts buy fb account
buy facebook profile https://buy-ad-accounts.click
cheap facebook advertising account buy account facebook ads
facebook ad accounts for sale https://buy-ads-account.click/
facebook ads accounts https://ad-account-buy.top/
buy fb account https://buy-ads-account.work
cheap facebook account facebook ad account for sale
buy facebook advertising buying fb accounts
facebook ad account buy https://ad-accounts-for-sale.work/
buy google ads invoice account https://buy-ads-account.top
buy google ads threshold accounts https://buy-ads-accounts.click
google ads account for sale https://ads-account-for-sale.top
buy old google ads account https://ads-account-buy.work
buy google ad account https://buy-ads-invoice-account.top
buy verified google ads accounts https://buy-account-ads.work
buy google ads accounts https://buy-ads-agency-account.top
buy verified google ads accounts https://sell-ads-account.click
buy google ads threshold accounts buy google ad threshold account
buy facebook verified business manager buy verified business manager
buy google agency account https://buy-verified-ads-account.work
business manager for sale buy business manager account
buy business manager facebook https://buy-verified-business-manager-account.org
buy bm facebook https://buy-verified-business-manager.org
buy business manager facebook buy fb bm
buy business manager facebook https://business-manager-for-sale.org
facebook verified business manager for sale https://buy-business-manager-verified.org/
verified bm for sale facebook bm for sale
buy fb business manager verified-business-manager-for-sale.org
business manager for sale https://buy-business-manager-accounts.org/
tiktok ads account buy tiktok ads agency account
tiktok ads account buy https://tiktok-ads-account-buy.org
buy tiktok ads https://tiktok-ads-account-for-sale.org
buy tiktok ads account https://tiktok-agency-account-for-sale.org
tiktok ads agency account https://buy-tiktok-ad-account.org
tiktok agency account for sale https://buy-tiktok-ads-accounts.org
tiktok ads account buy https://tiktok-ads-agency-account.org
tiktok ads agency account https://buy-tiktok-business-account.org
buy tiktok ads https://buy-tiktok-ads.org