K Krithivasan, Chief Executive Officer and Managing Director, stated that continued global macroeconomic and geopolitical uncertainties had led to a contraction in demand. However, all the new service offerings performed well, supported by robust deal closures during the quarter.
“We remain closely connected to our customers to help them navigate the challenges impacting their businesses through cost optimisation, vendor consolidation, and AI-led business transformation,” he added.
Revenue grew marginally by 1.3 per cent year-on-year to ₹63,437 crore but declined 1.6 per cent sequentially. The company reported an operating margin of 24.5 per cent for the June 2025 quarter, reflecting a quarter-on-quarter expansion of 30 basis points. Net cash generated from operations was ₹12,804 crore.
TCS’s total workforce stood at 613,069, with a net headcount addition of 6,071 over the past year.
The BFSI (Banking, Financial Services, and Insurance) segment remained the top revenue contributor, accounting for 32 per cent of the business—up from 30.9 per cent in Q1 FY25—and registered a modest 1 per cent year-on-year constant currency (CC) growth. The Consumer Business segment’s contribution rose slightly to 15.6 per cent but declined 3.1 per cent in CC terms. Life Sciences & Healthcare and Communication & Media were the worst performers, each recording a 9.6 per cent year-on-year decline. Manufacturing and Regional Markets & Others also saw negative growth of 4.0 per cent and 8.6 per cent, respectively.
Meanwhile, Technology & Services contributed 8.4 per cent to revenue, growing 1.8 per cent year-on-year. The Energy, Resources & Utilities segment posted the highest growth rate of 2.8 per cent, with its share rising to 5.9 per cent from 5.6 per cent a year ago. Overall, the company’s constant currency revenue declined 3.1 per cent year-on-year across all segments.
Regional Performance
In terms of geography, North America remained the largest market, contributing 48.7 per cent to total revenue, though it experienced a 2.7 per cent decline in CC growth. The UK increased its share to 18.0 per cent from 16.9 per cent, but CC growth declined marginally by 1.3 per cent. Continental Europe, contributing 15 per cent, saw a 3.1 per cent fall.
On the other hand, the Asia Pacific region reported strong growth, with its share rising to 8.4 per cent and a 3.6 per cent year-on-year CC increase. Latin America also performed well, growing 3.5 per cent while maintaining a 1.9 per cent contribution. India saw the steepest fall, with its contribution declining to 5.8 per cent and CC growth plunging by 21.7 per cent. The Middle East and Africa (MEA) region posted the highest growth rate of 9.4 per cent, with its share rising to 2.2 per cent.