1 week Ago By Pratiksha Thayil
A slowdown in the India business is due to the near-completion of the BSNL order, even as global markets showed resilience, said K Krithivasan chief executive officer at Tata Consultancy Services Ltd.A significant drag came from the Rs 15,000-crore BSNL 4G rollout deal, won in 2023 by a TCS-led consortium. The order, which had fuelled domestic growth for over a year, is now in its final stages.
“It will take a couple more quarters to wind down completely,” Krithivasan told NDTV Profit. The drying-up of this deal contributed to the company’s fourth quarter operating margin slipping 30 basis points sequentially to 24.2%.
On the global front, TCS reported a strong total contract value of $12.2 billion in the fourth quarter, up from $10.2 billion in the previous quarter.
However, Krithivasan cautioned that deal flow could face near-term headwinds due to macroeconomic uncertainty amid the trade war initiated by US President Donald Trump.“There have been some project deferrals and reductions in scope, but no cancellations,” he noted.Discretionary spending pressures were visible in the consumer segment in the US, with delays and project size reductions.
While the auto sector remained weak, the aerospace industry showed stronger demand, he added.TCS To Hire 42,000 Freshers, Wage Hike Decisions Remains Unclear Amid Tariff WoesTalking about the banking, financial services, and insurance segment, he said that it remained robust, contributing Rs 24,257 crore (37% of revenue), though insurance in North America showed some softness. Margins for the segment declined by 100 basis points sequentially to 26.
28%, while the order book in BFSI stood at about $4 billion.TCS is also focusing on Europe, engaging in discussions on sovereign and private cloud deals, and exploring opportunities to grow its currently limited defence exposure.Krithivasan further spoke on how employee costs impacted margins as well, with Rs 800 crore added due to mass promotions—over 1 lakh employees were promoted in financial year 2025.
The company also saw a 100 bps margin hit from employee interventions and 60 bps from marketing and CSR spends. Attrition, however, declined sequentially.On the technology front, Krithivasan said customers increasingly expect GenAI capabilities to be embedded in products.
He also acknowledged near-term challenges from the rise of Global Capability Centres but expressed confidence in long-term coexistence.Despite current headwinds, Krithivasan reaffirmed his positive outlook, maintaining that financial year ending March 2026 will be stronger than the last fiscal."I am not as optimistic as I was in January, but I am not pessimistic either," he added.
TCS Q4 Review: Brokerages Cut EPS Estimates Over Demand Concerns Due To Global Macro Uncertainty. Read more on Business by NDTV Profit..
