TCS Financial Analysis
Independent Academic Financial Analysis & Forecasting Project

Tata Consultancy Services Limited

Historical FY2018–FY2025 actuals from TCS Annual Reports, projected to FY2028 under Base, Bull and Bear scenarios. All values in ₹ Crore unless stated.
Active Base case

Financial Summary

FY2025 Actual → FY2028 Forecast (Base) · 3-year CAGR
Revenue (₹ Cr)
3,26,116
+8.5%from 2,55,324
EBITDA (₹ Cr)
92,943
+9.2%from 71,369
EBIT (₹ Cr)
86,095
+9.2%from 66,135
Net Profit (₹ Cr)
64,140
+9.5%from 48,797
EPS (Diluted) (₹)
₹177.18
+9.7%from ₹134.20
Free Cash Flow (₹ Cr)
62,836
+9.6%from 47,776
Revenue CAGR FY18–2511.0% Strong
Net Profit CAGR FY18–259.5% Strong
EBITDA Margin FY28F28.5% +0.5 pp vs FY25
Net Margin FY28F19.7% +0.6 pp vs FY25

Revenue vs Net Profit

₹ Crore · shaded region = forecast

Margin Trend

EBITDA & Net Profit margin

Forecast Summary

KPI dashboard (Base Case)

Full forecast →
₹ Crore
FY2025
A
FY2026
F
FY2027
F
FY2028
F
3Y CAGR
F
Revenue (₹ Cr)2,55,3242,75,7502,99,1893,26,116+8.5%
Net Profit (₹ Cr)48,79753,20758,17664,140+9.5%
EPS (₹)₹134.20₹146.98₹160.71₹177.18+9.7%
EBITDA (₹ Cr)71,36977,21084,37192,943+9.2%
Free Cash Flow (₹ Cr)47,77652,10456,97962,836+9.6%

Key Assumptions

Base Case

Edit →
Revenue Growth FY26 / 27 / 28
8.0% / 8.5% / 9.0%
EBITDA Margin FY26 / 27 / 28
28.0% / 28.2% / 28.5%
Tax Rate
25.5%
Depreciation (% of Rev)
2.1%
Capex (% of Rev)
2.5%
Shares Outstanding
362 Cr
Model Validation11 / 11 checks passed

Key Strengths

As stated in the source model

  • +India's largest IT company - $30B+ revenue milestone in FY25
  • +Strong cash generation - FCF of ₹47,776 Cr in FY25
  • +Industry-leading margins - Operating margin ~24.3%
  • +Strong order book - $39.4B TCV in FY25

Key Risks

As stated in the source model

  • −Currency volatility - 60%+ revenue from exports
  • −Global macro uncertainty - Tech spending slowdown risk
  • −North America weakness - -1.8% YoY growth in FY25
  • −Client concentration - Top 10 clients ~30% revenue