ADVERTISEMENTs
India's TCS posts muted growth as global demand slows
A leader of India's $283 billion software services sector, TCS earns the bulk of its revenue from Western clients and has seen sluggish demand over the past two years due to global uncertainty and inflation.
-
AFP - Thu, 09, Oct 2025
- 17:12 EDT
- 16
Tata consultancy services Logo / TCS
Indian IT giant Tata Consultancy Services (TCS) reported modest quarterly results Oct. 9 as weak demand and a steep US visa fee hike cast uncertainty over its outlook.
A leader of India's $283 billion software services sector, TCS earns the bulk of its revenue from Western clients and has seen sluggish demand over the past two years due to global uncertainty and inflation.
Also Read: Anthropic to open first India office in 2026 as demand for AI tools grows
While the Mumbai-headquartered company had forecast better demand this year, continuing uncertainty stemming from US President Donald Trump's tariff blitz and turmoil in the Middle East has dampened hopes of a strong rebound.
Revenue for the July-September quarter rose 2.4 percent year-on-year to 657.9 billion rupees ($7.4 billion), beating forecasts.
But net profit for the quarter missed expectations, rising 1.4 percent year-on-year to 120.75 billion rupees.
While Trump's tariffs may not directly impact India's vast outsourcing sector, their broader economic ripples are prompting clients to cut costs and scale back spending on big tech projects.
The IT industry also faces headwinds from Trump's decision to impose a $100,000 fee on new H-1B visa applications, a move experts say will force Indian firms to hire more from the United States, squeezing margins as a result.
India's IT sector is partly betting on artificial intelligence tools to drive efficiency and slash costs.
In July, TCS announced plans to cut about two percent of its workforce -- over 12,000 jobs -- as part of a shift to becoming a "future-ready" organisation.
On Oct. 9, the company said it would build a one-gigawatt data centre, part of its strategy to develop AI infrastructure.
"We are on a journey to become the world's largest AI-led technology services company," CEO K Krithivasan said in a statement.
Infosys, TCS's main domestic rival, is due to report its quarterly results next week.
Related
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
E Paper
ADVERTISEMENT
Video
Comments
Start the conversation
Become a member of New India Abroad to start commenting.
Sign Up Now
Already have an account? Login