Tata Consultancy Services (TCS), India’s largest software services exporter, witnessed a drop in share price by 1.64%, closing at ₹3,239 per share on the National Stock Exchange (NSE) on Wednesday, April 9, 2025. The fall comes ahead of the company’s crucial fourth-quarter results for the financial year ending March 31, 2025, expected to be declared the next day.

This pre-result dip is being closely watched by market participants, especially given the current cautious sentiment surrounding the IT sector, as several firms have shown slower growth due to global macroeconomic uncertainties and delayed client decision-making in key markets such as the US and Europe.

Q4 Result Jitters Pull TCS Share Price Down

Investor caution has intensified ahead of the earnings season, with TCS being one of the first major companies in the IT space to report results. As a bellwether for the industry, the performance of TCS in Q4 will likely set the tone for peers such as Infosys, Wipro, and HCLTech.

The 1.64% decline in share price, though not alarming, reflects investor nervousness about whether TCS can meet street expectations amid persistent global headwinds and muted deal flow. The stock closed at ₹3,239, down ₹54 from its previous close.

Board Meeting Scheduled on April 10, 2025

TCS informed stock exchanges via an official filing that a meeting of the Board of Directors is scheduled for Thursday, April 10, 2025. During this meeting, the board is expected to review and approve the financial results for Q4 FY25 and recommend a final dividend, if any, for the fiscal year.

As per the exchange filing:

“A meeting of the Board of Directors of Tata Consultancy Services Limited is scheduled to be held on Thursday, April 10, 2025 to recommend a final dividend, if any, on the equity shares of the Company for the financial year ending March 31, 2025, for the approval of the shareholders at the ensuing 30th Annual General Meeting.”

This development is particularly significant for long-term investors and institutional holders, who look forward to dividend income from TCS, which has historically maintained a strong track record of returning capital to shareholders.

Final Dividend Expectations for FY25

TCS is known for its generous dividend payouts. In FY24, the company declared multiple interim dividends and a final dividend that brought the total dividend payout close to ₹115 per share for the year.

Based on the company’s stable cash reserves and consistent performance, analysts expect TCS may maintain or slightly increase the final dividend for FY25. However, a lot depends on the company’s Q4 numbers, especially revenue growth, margin stability, and order book status.

Any positive surprises in earnings or dividend payout could act as a short-term trigger for the stock to bounce back from current levels.

Sector-Wide Caution Weighs on IT Stocks

TCS's price movement is also reflective of broader concerns in the IT services industry. The sector has been grappling with:

• Sluggish demand from key geographies

• Unfavourable currency movements

• High employee costs

• Low discretionary tech spending among global clients

As such, any hint of conservative guidance or delayed deal ramp-ups in TCS’s earnings call could keep the stock under pressure, despite strong fundamentals.

What Should Investors Watch For?

Investors and analysts will be closely monitoring several key metrics in TCS’s Q4 results:

• Revenue and profit growth (YoY and QoQ)

• Operating margin trajectory

• Total contract value (TCV) of new deals signed

• Geographic and vertical-specific performance

• Outlook commentary for FY26

• Final dividend payout decision

A strong beat on revenue or deal wins could help boost investor sentiment, while weak guidance may trigger a further short-term correction in the stock.

TCS Stock Performance in FY25 So Far

Despite the dip, TCS has remained relatively resilient during FY25. The stock has delivered mid-single-digit returns year-to-date, supported by stable execution, cost controls, and a robust digital transformation portfolio.

However, valuation concerns and macro risks continue to limit the upside potential in the near term. Investors are advised to watch for updates from the April 10 board meeting, which could influence TCS’s trajectory for the rest of the fiscal year.

Conclusion

Tata Consultancy Services (TCS) is at a critical juncture as it prepares to announce its Q4 FY25 earnings and a possible final dividend. While the 1.64% dip in share price reflects short-term investor concern, the company’s long-term fundamentals remain intact. All eyes are now on the April 10 board meeting, which could provide crucial insights into the company’s financial health, strategic priorities, and shareholder reward policies.

The Upcoming IPOs in this week and coming weeks are Aten Papers & Foam.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.