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India's TCS posts first-quarter revenue miss on shrinking tech spends
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India's TCS posts first-quarter revenue miss on shrinking tech spends
Jul 10, 2025 3:51 AM

BENGALURU, July 10 (Reuters) - India's Tata Consultancy

Services reported lower-than-expected first-quarter

revenue on Thursday as clients remained cautious about

discretionary spending amid tariff-related uncertainty.

Consolidated sales at India's largest IT services firm by

revenue rose 1.3% year-on-year to 634.37 billion rupees ($7.40

billion) in the June quarter.

Analysts, on average, expected 646.66 billion rupees, as per

data compiled by LSEG.

Revenue is the key metric that analysts and market

participants look at in the Indian IT sector as most companies

provide annual revenue growth forecasts.

Uncertainty around U.S. tariffs has quashed IT companies'

hopes of a revival in client confidence and spending in its

biggest market. A survey in May showed two in five tech

executives had deferred discretionary projects.

"The continued global macro-economic and geo-political

uncertainties caused a demand contraction," said TCS CEO K

Krithivasan.

Last month, IT bellwether Accenture's ( ACN ) shares dropped

as much as 6% after it reported tepid deal-booking numbers in

its quarterly results.

A slowdown in state-owned BSNL's contribution, as the

telecom company's $1.83 billion deal nears completion, also

dented revenue for TCS, according to analysts.

TCS's total order bookings stood at $9.4 billion during the

quarter, from $12.2 billion in the previous quarter and $8.3

billion in the year-ago period.

Its net profit rose 6% in three-month period to 127.60

billion rupees. Analysts had expected a profit of 122.16 billion

rupees, as per data compiled by LSEG.

TCS is the first Indian tech major to report results. Rival

HCLTech reports next week, with Infosys

following suit on the week after.

Its shares listed in Mumbai closed 0.1% lower ahead of the

results.

($1 = 85.6690 Indian rupees)

(Reporting by Sai Ishwarbharath B and Haripriya Suresh; Editing

by Janane Venkatraman and Mrigank Dhaniwala)

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