Fri Jan 10 11:34:18 UTC 2025: ## TCS Shares Surge 6% on Strong Q3 Earnings, Boosting Nifty IT
**Mumbai, January 10** – Tata Consultancy Services (TCS), India’s largest IT company, saw its shares jump 6 percent today following the release of its strong third-quarter earnings report. The surge, which pushed the Nifty IT index over 2 percent higher, reflects investor optimism about a demand revival in the IT sector.
TCS reported a consolidated net profit of Rs 12,380 crore (approximately $1.5 billion USD), a 4 percent sequential increase, slightly exceeding analyst expectations. While consolidated revenue at Rs 63,973 crore was largely flat compared to the previous quarter and slightly below forecasts, the company’s total contract value (TCV) reached $10.2 billion, a 25.93 percent year-on-year increase and 18.6 percent sequentially. This strong TCV performance was achieved despite Q3 typically being a seasonally weak quarter and excluding the contribution from a major deal with BSNL.
CEO and Managing Director K Krithivasan highlighted the “excellent TCV performance” across various sectors and geographies, citing early signs of a revival in discretionary spending as a positive indicator for future growth. The company also reported shorter deal conversion cycles and an improved win mix, further bolstering confidence in a demand rebound.
Brokerages reacted positively, with Nuvama describing the management’s commentary as the most optimistic in two years. The upbeat outlook from TCS, the first major IT firm to release its earnings, triggered strong buying across other IT stocks.
Despite the revenue falling slightly short of expectations, the company’s operating margins improved by 40 basis points sequentially to 24.5 percent, driven by the ramp-up of the BSNL deal. Management anticipates margins closer to its FY25 guidance of 26-28 percent in the next quarter. The positive sentiment surrounding TCS’s results contributed significantly to the overall positive performance of the Nifty IT index today.
First Piper 