The Directors present this Integrated Annual Report of
Tata Consultancy Services Limited ("the Company" or "TCS")
along with the audited financial statements for the financial year
("FY") ended March 31, 2025.
The consolidated performance of the Company and its
subsidiaries has been referred to wherever required.
1. Financial results
| |
Standalone
|
Consolidated
|
| |
Financial Year
2024-25
(FY 2025)
|
Financial Year
2023-24
(FY 2024)
|
Financial Year
2024-25
(FY 2025)
|
Financial Year
2023-24
(FY 2024)
|
|
Revenue from operations
|
2,14,853
|
2,02,359
|
2,55,324
|
2,40,893
|
|
Other income
|
9,642
|
7,273
|
3,962
|
4,422
|
|
Total income
|
2,24,495
|
2,09,632
|
2,59,286
|
2,45,315
|
|
Expenses
|
|
|
|
|
|
Operating expenditure
|
1,56,924
|
1,46,512
|
1,87,917
|
1,76,597
|
|
Depreciation and amortisation expense
|
4,220
|
3,887
|
5,242
|
4,985
|
|
Total expenses
|
1,61,144
|
1,50,399
|
1,93,159
|
1,81,582
|
|
Profit before finance costs, exceptional item and tax
|
63,351
|
59,233
|
66,127
|
63,733
|
|
Finance costs
|
703
|
673
|
796
|
778
|
|
Profit before exceptional item and tax
|
62,648
|
58,560
|
65,331
|
62,955
|
|
Exceptional item
|
|
|
|
|
|
Settlement of legal claim
|
-
|
958
|
-
|
958
|
|
Profit before tax
|
62,648
|
57,602
|
65,331
|
61,997
|
|
Tax expense
|
14,591
|
14,043
|
16,534
|
15,898
|
|
Profit for the year
|
48,057
|
43,559
|
48,797
|
46,099
|
|
Attributable to:
|
|
|
|
|
|
Shareholders of the Company
|
48,057
|
43,559
|
48,553
|
45,908
|
|
Non-controlling interests
|
NA
|
NA
|
244
|
191
|
|
Opening balance of retained earnings
|
55,173
|
62,228
|
70,033
|
74,722
|
|
Closing balance of retained earnings
|
73,380
|
55,173
|
88,777
|
70,033
|
2. Return of surplus funds to Shareholders
In line with the practice of returning substantial free
cash flow to shareholders and based on the Company's
performance, the dividends for FY 2025 would amount to
'126 per equity share, which includes payment of three
interim dividends of '10 each, a special dividend of '66 per
equity share, and recommended a final dividend of '30 per
equity share. The shareholders' payout for FY 2025 would
involve a total cash outflow of '45,588 crore.
For FY 2024, the Company paid a total dividend of '73
per equity share which included three interim dividends
of '9 each, a special dividend of '18 per equity share and
a final dividend of '28 per equity share. In addition to
the above, the Company bought back 4,09,63,855 equity
shares at a price of '4,150 per equity share for an aggregate
consideration of '17,000 crore. The Shareholders' payout
with respect to dividend and buyback including tax on
buyback (excluding transaction costs, other incidental and
related expenses) aggregated to '47,445 crore.
The Dividend Distribution Policy, in terms of Regulation
43A of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015
("SEBI Listing Regulations"), is available on the Company's
website at https://on.tcs.com/Dividend.
3. Transfer to reserves
The closing balance of the retained earnings of the Company
for FY 2025 after all appropriation and adjustments was
'73,380 crore.
4. Company's performance
On a consolidated basis, the revenue from operations for
FY 2025 was '2,55,324 crore, higher by 6.0% over the
previous year's revenue from operations of '2,40,893
crore. The profit for the year attributable to shareholders
for FY 2025 was '48,553 crore registering a growth of 5.8%
over the profit for the year attributable to shareholders of
'45,908 crore in FY 2024.
On a standalone basis, the revenue from operations for
FY 2025 was '2,14,853 crore, higher by 6.2% over the
previous year's revenue from operations of '2,02,359
crore. The profit for the year attributable to shareholders
in FY 2025 was '48,057 crore registering a growth of 10.3%
over the profit for the year attributable to shareholders of
'43,559 crore in FY 2024.
5. Subsidiary companies
On March 31, 2025, the Company has 52 subsidiaries and
there has been no material change in the nature of the
business of the subsidiaries. There are no associates or joint
venture companies within the meaning of Section 2(6) of the
Companies Act, 2013 ("the Act").
TCS Financial Solutions (Beijing) Co., Ltd. was merged with
Tata Consultancy Services (China) Co., Ltd. a step-down
wholly owned subsidiary of the Company w.e.f. July 1, 2024.
On December 20, 2024, Tata Consultancy Services (Africa)
(Proprietary) Limited ("TCS Africa"), a wholly owned
subsidiary of the Company disposed off 30% of its equity
stake in Tata Consultancy Services (South Africa) (Proprietary)
Limited ("TCS SA"), a step-down wholly owned subsidiary of
the Company at a consideration of ZAR 61 million (equivalent
to '28 crore) to Isisekelo Sethu Trust, to comply with the
Broad-Based Black Economic Empowerment ("B-BBEE")
guidelines in South Africa. Consequently, TCS SA ceased to be
a step-down wholly owned subsidiary of the Company.
On January 29, 2025, the Company executed a Share
Purchase and Securities Purchase Agreement ("SSPA")
with Tata Realty and Infrastructure Limited ("TRIL"), TRIL
Bengaluru Real Estate Five Limited ("TBRF") and TRIL
Bengaluru Real Estate Six Limited ("TBRS") for acquisition of
100% of equity shares and optionally redeemable convertible
debentures of TBRF and TBRS held by TRIL, in two tranches,
at a consideration of '1,593 crore. Upon the execution
of SSPA, 65% of equity shares and optionally redeemable
convertible debentures have been transferred to the
Company at a consideration of '1,036 crore and recognised a
financial liability of '557 crore towards consideration payable
at a future date for 35% stake.
Pursuant to the provisions of Section 129(3) of the Act,
a statement containing the salient features of financial
statements of the Company's subsidiaries in Form No. AOC-1
is attached to the financial statements of the Company.
Further, pursuant to the provisions of Section 136 of the
Act, the financial statements of the Company, consolidated
financial statements along with relevant documents
and separate audited financial statements in respect of
subsidiaries, are available on the Company's website at
https://www.tcs.com/investor-relations.
6. Directors' Responsibility Statement
Pursuant to Section 134(5) of the Act, the Board of Directors,
to the best of its knowledge and ability, confirm that:
i. In the preparation of the annual accounts, the
applicable accounting standards have been followed
and there are no material departures;
ii. They have selected such accounting policies and applied
them consistently and made judgments and estimates
that are reasonable and prudent so as to give a true
and fair view of the state of affairs of the Company at
the end of the financial year and of the profit of the
Company for that period;
iii. They have taken proper and sufficient care for
the maintenance of adequate accounting records
in accordance with the provisions of the Act for
safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv. They have prepared the annual accounts on a going
concern basis;
v. They have laid down internal financial controls to be
followed by the Company and such internal financial
controls are adequate and operating effectively;
vi. They have devised proper systems to ensure compliance
with the provisions of all applicable laws and that such
systems are adequate and operating effectively.
Based on the framework of internal financial controls and
compliance systems established and maintained by the
Company, the work performed by the internal, statutory and
secretarial auditors and external consultants, including the
audit of internal financial controls over financial reporting
by the statutory auditors and the reviews performed by
management and the relevant board committees, including
the Audit Committee, the Board is of the opinion that the
Company's internal financial controls were adequate and
effective during FY 2025.
7. Directors and Key Managerial Personnel ("KMP")
As on March 31, 2025, the Company has eight Directors
of which seven are Non-Executive Directors (including two
women Directors). The Company has five Independent
Directors (including one woman Independent Director).
Based on the recommendation of Nomination and
Remuneration Committee ("NRC"), and in terms of the
provisions of the Act, the Board of Directors appointed Sanjay
V Bhandarkar (DIN 01260274) as an Additional Director of
the Company effective March 4, 2025. Further, in accordance
with the provisions of Section 149 read with Schedule IV
to the Act and applicable SEBI Listing Regulations, Sanjay V
Bhandarkar was appointed as Non-Executive, Independent
Director of the Company, not liable to retire by rotation,
for a term of five years commencing from March 4, 2025
to March 3, 2030. A Special Resolution seeking Member's
approval for his appointment is being sought through Postal
Ballot, for which the remote e-voting period commenced on
March 26, 2025 and will end on April 24, 2025. In the opinion
of the Board, Sanjay V Bhandarkar is a person of integrity
and fulfils requisite conditions as per applicable laws and is
independent of the management of the Company.
The Board of Directors at its meeting held on April 10, 2025
appointed Aarthi Subramanian (DIN 07121802) as the
Whole-time Director designated as "Executive Director -
President and Chief Operating Officer" for a term of five
years commencing from May 1, 2025 to April 30, 2030,
subject to approval of the Members at the ensuing Annual
General Meeting ("AGM"). A resolution seeking Member's
approval for her appointment forms part of the Notice for
the ensuing AGM.
During the year under review, N G Subramaniam
(DIN 07006215) ceased to be the Chief Operating Officer
and Executive Director ("COO & ED") of the Company
w.e.f. May 20, 2024, as per the retirement age policy of
the Company and O P Bhatt (DIN 00548091) ceased to
be Director of the Company w.e.f. June 27, 2024 upon
completion of his term as an Independent Director. The
Board places on record its appreciation for their invaluable
contribution and guidance provided to the Company.
Aarthi Subramanian retires by rotation and being eligible,
offers herself for reappointment as per Section 152(6) of the
Act.
Pursuant to the provisions of Section 149 of the Act, the
Independent Directors have submitted declarations that each
of them meets the criteria of independence as provided in
Section 149(6) of the Act along with Rules framed thereunder
and Regulation 16(1)(b) of the SEBI Listing Regulations. There
has been no change in the circumstances affecting their status
as independent directors of the Company.
During the year under review, the Non-Executive Directors of
the Company had no pecuniary relationship or transactions
with the Company, other than sitting fees, commission and
reimbursement of expenses, if any.
Yashaswin Sheth was appointed as the Company Secretary
and Compliance Officer w.e.f. November 1, 2024, upon
the superannuation of Pradeep Manohar Gaitonde w.e.f.
October 31, 2024.
The Board places on record its appreciation for Pradeep
Manohar Gaitonde for the valuable contribution provided to
the Company.
Pursuant to the provisions of Section 203 of the Act,
K Krithivasan, Chief Executive Officer and Managing Director
(CEO & MD), Samir Seksaria, Chief Financial Officer and
Yashaswin Sheth, Company Secretary, are the KMPs of the
Company as on March 31, 2025.
8. Number of meetings of the Board
Five meetings of the Board were held during the year under
review. For details of meetings of the Board, please refer to
the Corporate Governance Report, which forms part of
this report.
9. Board evaluation1
The Board of Directors has carried out an annual evaluation
of its own performance, board committees, and individual
directors pursuant to the provisions of the Act and SEBI
Listing Regulations.
The performance of the Board was evaluated by the Board
after seeking inputs from all the directors on the basis
of criteria such as the board composition and structure,
effectiveness of board processes, information and
functioning, etc.
The performance of the Committees was evaluated by the
Board after seeking inputs from the Committee members on
the basis of criteria such as the composition of committees,
effectiveness of committee meetings, etc.
The above criteria are broadly based on the Guidance Note
on Board Evaluation issued by the Securities and Exchange
Board of India. In a separate meeting of Independent
Directors, performance of Non Independent Directors,
the Board as a whole and Chairman of the Company was
evaluated, taking into account the views of Executive and
Non-Executive Directors.
The Board and the NRC reviewed the performance
of individual directors on the basis of criteria such as
contribution of the individual director to the Board and
Committee meetings like preparedness on the issues to be
discussed, meaningful and constructive contribution and
inputs in meetings, etc.
At the Board meeting that followed the meeting of the
Independent Directors and meeting of NRC, the performance
of the Board, its Committees, and individual directors was
also discussed. Performance evaluation of Independent
Directors was done by the entire Board.
10. Policy on directors' appointment and remuneration and
other details
The Company's policy on appointment of Directors is
available on the Company's website at
https://on.tcs.com/ApptDirectors.
The policy on remuneration and other matters provided in
Section 178(3) of the Act has been disclosed in the Corporate
Governance Report, which forms part of this report and is
also available on the Company's website at
https://on.tcs.com/remuneration-policy.
11. Corporate Social Responsibility ("CSR")
The Company's CSR initiatives and activities are aligned to
the requirements of Section 135 of the Act.
A brief outline of the CSR policy and the initiatives
undertaken by the Company on CSR activities during the
year under review are set out in Annexure I of this report in
the format prescribed in the Companies (Corporate Social
Responsibility Policy) Rules, 2014. This Policy is available on
the Company's website at https://on.tcs.com/Global-CSR-
Policy.
For other details regarding the CSR Committee, please refer
to the Corporate Governance Report, which forms part of
this report.
12. Internal financial control systems and their adequacy
The details in respect of internal financial controls and their
adequacy are included in the Management Discussion and
Analysis, which forms part of this report.
13. Audit Committee
The details pertaining to the composition of the Audit
Committee are included in the Corporate Governance
Report, which is a part of this report.
14. Auditors
At the twenty-seventh AGM held on June 9, 2022, the
Members approved the re-appointment of B S R & Co. LLP,
Chartered Accountants (Firm Registration No. 101248W/W-
100022) as Statutory Auditors of the Company to hold office
for a period of five years from the conclusion of that AGM
till the conclusion of the thirty-second AGM to be held in the
year 2027.
In compliance with Regulation 24A of the SEBI Listing
Regulations and Section 204 of the Act, the Board at its
meeting held on April 10, 2025, based on recommendation
of the Audit Committee, has approved the appointment of
Parikh & Associates, Practising Company Secretaries, a peer
reviewed firm (Firm Registration No. P1988MH009800)
as Secretarial Auditors of the Company for a term of five
consecutive years commencing from FY 2025-26 till FY 2029¬
30, subject to approval of the Members at the ensuing AGM.
15. Auditor's report and Secretarial audit report
The Statutory Auditor's report and the Secretarial Auditor's
report do not contain any qualifications, reservations, or
adverse remarks or disclaimer. Secretarial audit report is
attached to this report as Annexure II.
16. Risk management
The Board of Directors of the Company has a Risk
Management Committee to frame, implement and monitor
the risk management plan for the Company.
The Committee is responsible for monitoring and reviewing
the risk management plan and ensuring its effectiveness.
The Audit Committee has additional oversight in the area
of financial risks and controls. The major risks identified by
the businesses and functions are systematically addressed
through mitigating actions on a continuing basis.
The development and implementation of risk management
policy has been covered in the Management Discussion and
Analysis, which forms part of this report.
17. Vigil Mechanism
The Company has a Whistle Blower Policy and has
established the necessary vigil mechanism for employees,
Directors and stakeholders in conformation with the
provisions of Section 177(9) of the Act and Regulation 22 of
SEBI Listing Regulations, to report concerns about unethical
behaviour. This Policy is available on the Company's website
at https://on.tcs.com/WhistleB .
18. Particulars of loans, guarantees and investments
The particulars of loans, guarantees and investments as per
Section 186 of the Act by the Company have been disclosed
in the financial statements.
19. Transactions with related parties
None of the transactions with related parties fall under
the scope of Section 188(1) of the Act. Accordingly, the
disclosure of related party transactions as required under
Section 134(3)(h) of the Act in Form AOC-2 is not applicable
to the Company for FY 2025 and hence, does not form part
of this report.
Pursuant to the SEBI Listing Regulations, the resolutions
seeking approval of the Members on material related party
transactions forms part of the Notice of the ensuing AGM.
20. Annual Return
Pursuant to Section 92(3) read with Section 134(3)(a) of the
Act, the Annual Return as on March 31, 2025 is available
on the Company's website at https://on.tcs.com/annual-
return-24-25.
21. Particulars of employees
The information under Section 197 of the Act read with
Rule 5 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014:
a. The ratio of the remuneration of each director to the
median remuneration of the employees of the Company
and percentage increase in remuneration of each
Director, Chief Executive Officer, Chief Financial Officer
and Company Secretary in the financial year:
|
Name
|
Ratio to
median
remuneration
|
% increase in
remuneration
in the
financial year
|
|
Non-Executive
Directors:
|
|
|
|
N Chandrasekaran@
|
-
|
-
|
|
Aarthi
Subramanian@@
|
-
|
-
|
|
Dr Pradeep Kumar
Khosla
|
34.0
|
3.8
|
|
Hanne Sorensen
|
34.1
|
3.8
|
|
Keki Mistry
|
38.0
|
5.5
|
|
Al-Noor Ramji
|
34.1
|
A
|
|
Sanjay V
Bhandarkar1
|
$
|
$
|
|
O P Bhatt2
|
$
|
$
|
|
Executive Directors:
|
|
|
|
K Krithivasan
|
329.8
|
4.6
|
|
N G Subramaniam&
|
$
|
$
|
|
Chief Financial
Officer:
|
|
|
|
Samir Seksaria
|
96.7
|
7.8
|
|
Company Secretary:
|
|
|
|
Yashaswin Sheth#
|
$
|
$
|
|
Pradeep Manohar
Gaitonde##
|
$
|
$
|
@ As a policy, N Chandrasekaran, Chairman, has
abstained from receiving commission from the
Company and hence not stated.
@@ In line with the internal guidelines of the Company,
no payment is made towards commission to the
Non-Executive Directors of the Company, who
are in full time employment with any other Tata
Company and hence not stated.
A Remuneration received in FY 2025 is not
comparable with remuneration received in FY 2024
which was for part of the year and hence, not
stated.
b. The percentage increase in the median remuneration of
employees in the financial year is 6.3%.
c. The number of permanent employees on the rolls of
Company are 6,07,979.
d. The average annual increase was in the range of 4.5-7%,
with top performers receiving double digit increment in
India. However, during the course of the year, the total
increase is in the range of 5.5-7.5%, after accounting
for promotions and other event based compensation
revisions. Employees outside India received a wage
increase varying from 1.5-6%.
The increase in remuneration is in line with the market
trends in the respective countries. In order to ensure
that remuneration reflects the Company's performance,
the performance pay is also linked to organization
performance and individual utilization in addition to
individual performance.
Increase in the managerial remuneration for the year
was 4.6% for CEO & MD. Remuneration for erstwhile
COO & ED is for part of the year and hence not
considered.
e. The Company affirms that the remuneration is as per
the remuneration policy of the Company.
f. The statement containing names of top ten employees
in terms of remuneration drawn and the particulars
of employees as required under Section 197(12) of
the Act read with Rule 5(2) and 5(3) of the Companies
(Appointment and Remuneration of Managerial
Personnel) Rules, 2014, is provided in a separate
annexure forming part of this report.
Further, the report and the accounts are being sent
to the Members excluding the aforesaid annexure.
In terms of Section 136 of the Act, the said annexure
is open for inspection and any Member interested in
obtaining a copy of the same may write to the Company
Secretary.
22. Integrated Report
The Company has voluntarily provided Integrated Report,
which encompasses both financial and non-financial
information to enable the Members to take well-informed
decisions and have a better understanding of the Company's
long-term perspective. The Report also touches upon aspects
such as organization's strategy, governance framework,
performance and prospects of value creation based on the
five forms of capital viz. financial capital, human capital,
intellectual capital, social capital and natural capital.
23. Disclosure requirements
As per SEBI Listing Regulations, the integrated Management
Discussion and Analysis, the Corporate Governance Report
with the Auditors' Certificate thereon, and the Business
Responsibility and Sustainability Report ("BRSR") forms part
of the Board's Report.
The BRSR indicates the Company's performance against
the principles of the 'National Guidelines on Responsible
Business Conduct'. This would enable the Members to
have an insight into Environmental, Social and Governance
initiatives of the Company.
The Company has devised proper systems to ensure
compliance with the provisions of all applicable Secretarial
Standards issued by the Institute of Company Secretaries
of India and that such systems are adequate and operating
effectively.
24. Deposits from public
The Company has not accepted any deposits from public and
as such, no amount on account of principal or interest on
deposits from public was outstanding as on the date of the
balance sheet.
25. Quality initiatives
The Company reinforces its steadfast commitment to
excellence through the continuous pursuit of the highest
quality standards, exceptional customer experience, industry¬
leading service management, robust information security
and privacy frameworks, and a resilient business continuity
strategy.
The TCS Integrated Quality Management System ("iQMSTM")
serves as a structured and strategic framework designed
to ensure the consistent delivery of products and services
that meet or exceed customer expectations while driving
operational efficiency. It is continuously assessed and
enhanced to align with evolving market dynamics and
emerging technologies, including AI and Cloud, enabling the
organization to deliver certainty and create exceptional value
and experiences for its customers.
The Company continues to maintain enterprise-wide
certification to the following globally recognized standards:
• Quality Management (ISO 9001:2015)
• IT Service Management (ISO 20000-1:2018)
• Business Continuity Management (ISO 22301:2019)
• Information Security Management (ISO 27001:2022)
• Privacy Information Management Systems
(ISO 27701:2019)
• Information Security Controls for Cloud Services
(ISO 27017:2015)
• Protection of PII in Public Clouds as PII Processors
(ISO 27018:2019)
The Company also continues to maintain certification to
Health, Safety, Environment (HSE) and Energy Management
Systems Standards such as:
• ISO 14001:2015 (Environment management)
• ISO 45001:2018 (Health and Safety)
• ISO 50001:2018 (Energy management)
Certification in Industry domain specific standards such
as AS9100 (Aerospace), TL9000 (Telecom) and ISO 13485
(Medical devices) are also maintained.
The Company is also at Maturity level 5 of ISACA's Capability
Maturity Model Integration - Development (CMMI® DEV)
and Services (CMMI® SVC), a worldwide recognized industry
benchmark and performance improvement model.
The Company has received multiple external awards this year
in the American Society for Quality ("ASQ") South Asia Team
Excellence Awards, the Lean Six Sigma event from National
Institution for Quality & Reliability ("NIQR") and in CII Lean
National Awards 2024 as well as the CII Six Sigma National
competition.
26. Conservation of energy, technology absorption, foreign
exchange earnings and outgo
Conservation of energy
The Company is committed towards conservation of energy
and climate action which is reaffirmed in its Environmental
Sustainability policy [Environmental-Sustainability-Policy.pdf
(tcs.com)l.
During the year under review, several initiatives were
aligned to achieve the carbon targets which included those
in building and IT infrastructure. Initiatives in building
infrastructure included higher energy efficiencies in
heating, ventilation, and air conditioning ("HVAC") systems,
uninterruptible power supply ("UPS"), green buildings and
energy monitoring & analytics (Clever Energy & Resource
Optimisation Centre) which have resulted in energy savings
of 12,470 MWh, equivalent to 9,066 tCO2e reduction.
Initiatives in green IT focused on data center and IT device
consolidation and optimization to reduce the carbon
footprint. The Company's data centers have achieved a
weighted average PUE of 1.59 in FY 2025 compared to 1.7 in
FY 2024. The data centers use 100% renewable electricity. In
addition to this, the Company will continue to ensure energy
efficiency of the procured equipment.
TCS' IoT-based Real-time Energy Management System (TCS
Clever Energy™) involves real-time energy monitoring,
continues to yield benefits in terms of optimization of
operational energy efficiency across the Company's offices.
The roof top solar photo voltaic installations this year
remained at 10.2 MWp contributing to 2.7% of total
electricity use in the reporting year. The Company continued
its procurement of renewable energy through power
purchase agreements ("PPA's"), availing green tariffs in India
and procurement of Energy Attribute Certificates ("EACs").
Renewable energy procurement has resulted in an increase
in renewable energy use to 79% of total energy use during
the year.
As a commitment to energy conservation and management,
the Company has continued to implement initiatives, monitor
and measure energy performance at 22 large campuses in
India, which are certified to ISO 50001:2018.
The above energy efficiency and renewable energy
procurement efforts helped achieve a year-on-year reduction
in absolute carbon footprint (across Scope 1 and Scope 2) of
TCS' global operations by 20%. The Company has achieved
84% reduction in absolute emissions (Scope 1 and Scope 2)
when compared to the base year of FY 2016. The electricity
consumption across the Company's operations increased
by 11% in the current year compared to FY 2024. This is
considering increased operations due to return to office, and
inclusion of additional locations.
Continued focus on the above initiatives will enable the
Company's aspiration of achieving its SBTi-approved near
term targets.
Technology absorption, adoption and innovation:
Research & Development ("R&D"): Specific areas in which
R&D was carried out by the Company
TCS Research and Innovation ("R&I") continues to develop
novel methods, technologies, and platforms that can
transform the art of becoming perpetually adaptable into
systematic engineering. TCS R&I pursues two types of
initiative:
• Future of Technology ("FoT") initiatives: These are aimed at
tracking and developing novel technologies and platforms
that accelerate technology adoption. They focus on areas
including sensing, communication, computing, data and
knowledge engineering, digital and physical AI, as well as
experiential technologies.
• Future of Work ("FoW") initiatives: These are aimed at
infusing emerging technologies to invent the next
practices, focusing on a various work domains such as IT
(e.g., technology operations and modernization), business
(e.g., continuous talent transformation, drug discovery
and illness management in healthcare), and societal
(e.g., bioremediation of pollutants for sustainability).
During FY 2025, the Company undertook several R&I projects,
which include:
• A platform to expedite the transition of enterprises'
cryptographic systems to post-quantum cryptography
("PQC") protocols.
• An intelligent hybrid workspace platform to design, build,
and orchestrate the integration of physical robots and human
workers in areas such as warehouse operations.
• An AI-powered platform to provide personalized, real-time
expertise and wisdom, transforming the nature of knowledge
work.
• An Internet-like platform to facilitate the discovery and
exchange of energy assets among various energy prosumers
across administrative boundaries.
• A platform for designing microbial consortia that can be used
for the bioremediation of pollutants and waste, contributing
to sustainable futures.
Strengthening IP Base
As of March 31, 2025, the Company has filed 8,816 patents
cumulatively, and 4,820 have been granted.
Co-innovation with customers and partners
The Company's flagship co-innovation program, TCS Innovation
Ecosystem continues to serve as the go-to platform for co¬
innovation and business transformation. The Company expanded
the Pace footprint by launching three innovation hubs this year-
a Pace Port in Paris and two Pace Studios in Stockholm (Sweden)
and Manila (Philippines). The Company's ecosystem development
program, TCS COIN™ (co-innovation network), expanded its
global footprint this year. The Company today boasts partnerships
with more than 3,000 startups and 50 academic institutes.
The Company partnered with IIT Kharagpur and launched an
advanced research centre for innovation in digital health, robotics
and intelligent systems.
Creating a culture of innovation
The Company continues to focus on building a culture of
innovation across its talent value chain, through programs like:
• TCS Techvantage Program: Launched for fostering
engineering talent within the Company. The program
recognizes technology talent within the Company by
encouraging them to submit technical papers that are
adjudged and awarded by a jury of peers. Through this
program, over 22,000 technologists were engaged across the
Company.
• The 12th season of TCS CodeVita™, a global programming
contest saw huge global participation.
External recognitions
• TCS and IIT Delhi won the CII Award for Excellence in
Industry-Academia Partnership 2024 for their collaboration
on continuous biopharma technology.
• TCS' Intelligent Speech Assistant won an award under 'Design
for Social Impact' category at 14th CII Design Excellence
Awards 2024.
• TCS was awarded with ISGF Innovation Award 2024
Certificate of Merit for qualifying in the Top Five amongst
Adoption of Artificial Intelligence, Machine Learning and
Robotic Solutions - Industry (including Smart Business
Models).
• Recognized with the Asia IP Elite Award 2024 for being an
exemplar of IP value creation.
• Recognized with Special Appreciation Award by CII
acknowledging very special and distinctive features of some
inspiring IP initiatives of the organization.
• The TCS Research brand won at The Global Digital Excellence
Awards 2024 for 'Organic Social Media Campaign of the
Year'. This award celebrates company's commitment to
simplifying complex research and presenting it in ways that
resonate with people.
Future course of action
The Company will continue to invest in foundational technologies
through its FoT initiatives, especially in the areas of AI, quantum
computing, sensing, communications and experience, and
thereby stay ahead of the curve in technologies of relevance to its
customers. Through FoW initiatives, the Company will continue
to invent and adopt next practices in new areas of work through
technology infusion.
Expenditure on R&D
The Company's R&I centers are in India and other parts of the world. The research centers in India function from Pune, Chennai,
Bengaluru, Delhi-NCR, Hyderabad, Kolkata and Mumbai. The Company's Pace Port and Pace Studio innovation hubs operate in
Amsterdam, Toronto, Pittsburgh, Tokyo, New York, London, Paris, Riyadh, Letterkenny, Sydney, Stockholm and Manila.
Expenditure incurred in the R&D centers and innovation centers of the Company during FY 2025 and FY 2024 is given below:
(' crore)
|
Expenditure on R&D and innovation
|
Standalone
|
Consolidated
|
| |
|
FY 2025
|
FY 2024
|
FY 2025
|
FY 2024
|
|
a.
|
Capital
|
4
|
8
|
4
|
8
|
|
b.
|
Recurring
|
411
|
419
|
416
|
426
|
|
c.
|
Total R&D expenditure (a b)
|
415
|
427
|
420
|
434
|
|
d.
|
Innovation center expenditure
|
2,131
|
2,228
|
2,210
|
2,317
|
|
e.
|
Total R&D and innovation expenditure (c d)
|
2,546
|
2,655
|
2,630
|
2,751
|
|
f.
|
R&D and innovation expenditure as a percentage of total
turnover
|
1.2%
|
1.3%
|
1.0%
|
1.1%
|
Foreign exchange earnings and outgo
Export revenue constituted 90.0% of the total standalone revenue in FY 2025 (93.5% in FY 2024).
(' crore)
|
Foreign exchange earnings and outgo
|
FY 2025
|
FY 2024
|
|
a.
|
Foreign exchange earnings
|
2,00,801
|
1,93,252
|
|
b.
|
CIF Value of imports
|
117
|
174
|
|
c.
|
Expenditure in foreign currency
|
79,991
|
81,726
|
27. Acknowledgements
The Directors thank the Company's employees, customers, vendors, investors and academic partners for their continuous support.
The Directors also thank the Government of India, Governments of various states in India, Governments of various countries and
concerned Government departments and agencies for their co-operation.
The Directors appreciate and value the contribution made by every member of the TCS family.
On behalf of the Board of Directors
N Chandrasekaran
Chairman
DIN 00121863
Mumbai, April 10, 2025
1
Appointed as Independent Director w.e.f. March 4,
2025.
2
Ceased to be Director w.e.f. June 27, 2024 upon
completion of his term as Independent Director.
& Ceased to be Chief Operating Officer and Executive
Director w.e.f. May 20, 2024, as per the retirement
age policy of the Company.
# Appointed as the Company Secretary and
Compliance Officer w.e.f. November 1, 2024.
## Ceased to be Company Secretary and Compliance
Officer w.e.f. October 31, 2024.
$ Remuneration received in FY 2025 (for part of the
year) is not comparable with remuneration for
FY 2024 and hence not stated.
|