The 21st Century is experiencing rapid technical innovation. The advent and democratisation of AI are contributing significantly to it. The democratisation of technology refers to making technology accessible to the common people and not just the specialists. This expands the market for the IT industry and gives them access to a massive audience.
Some top IT companies include TCS, Infosys, Wipro, etc. This blog compares the performance of two IT giants, TCS vs. Infosys, in detail.
Understanding the IT industry
Before understanding the quarterly reports of TCS or Infosys, it is important to analyse the advancements of the IT industry. The massive expansion backed by government support has aided the growth of IT stocks.
With an assumed 10% contribution to GDP, the Indian stock market is expected to hit USD 350 billion by 2026. India has improved its ranking by six positions in the Global Innovation Index and currently stands at the 39th position.
Due to these growing trends and future outlook, the Indian IT industry has attracted foreign investments. To fuel next-gen startups, the Government of India decided to explore a Deep Tech Fund of Funds in the Union Budget 2025.
Also read: Best IT Sector Penny Stocks to Invest in India for 2025
Company overview
Given the progress and prospective enhancement of the IT sector, the existing top players of the industry will gain a substantial advantage. The two key participants of this industry are TCS and Infosys.
- Overview of TCS
Incorporated in 1968, the TATA Consultancy Services belongs to the TATA group. The company own 180 centres in 55 countries. There are over 6,07,000 consultants employed with TCS.
From mainframes to artificial intelligence, the organisation has seen the evolution of the IT sector. The company operates aids multiple industries. Some of these industries include banking, manufacturing, education and healthcare, etc. TCS Chroma, TCS BaNCS, TCS ADD, TCS BFSI Platform, etc., are some of the solutions provided by the company.
- Overview of Infosys
Established in 1981, the company began with a capital of USD 250 and grew to become a USD 19.3 billion company. The company has over 40 years of expertise and maintains a strong presence in over 56 countries. Infosys aids 1,869 clients through a massive team of 323 thousand employees.
The company was recognised as the largest IT employer in Karnataka in 2025. It was also among LinkedIn’s top companies 2025 list in India, USA and Canada. Australian Open, Roland Garros and ATP are some of its flagship partnerships.
TCS vs. Infosys: Comparing quarterly reports
Both of these companies have released their quarterly reports. The table below compares their quarterly performances of TCS vs. Infosys.
| Particular | TCS (March 2025) | Infosys (March 2025) |
| Revenue from operations | ₹ 64,479 Crore | ₹ 40,925 Crore |
| Earnings Per Share (EPS) | ₹ 33.79 | ₹ 16.93 |
| Return on capital employed (ROCE) | 65% | 38% |
| Operating Profit Margin (OPM) | 26% | 24% |
| Net Profit | ₹ 12,293 Crore | ₹ 7,038 Crore |
| Final Dividend (₹ per share) | 30 | 22 |
Optimal market investment requires interpretation and analysis of fiscal data. Therefore, a detailed explanation of the parameters mentioned in the table above is given below.
- Net Profit: The consolidated net profit of TCS dropped 1.6% when compared to the same quarter last fiscal year. On the other hand, Infosys recorded a fall of 11.7% in their consolidated net profit. Therefore, not only TCS has recorded a higher profit, the fall in profit is lower in TCS than Infosys. The global uncertainty spearheaded by the US Tariffs is one of the key causes of this weak quarterly performance, given that a huge chunk of the clientele of these top IT companies are settled in foreign markets.
- Operations: The companies recorded a difference of only 2% in their operating profit margins. Both companies have voiced the importance of AI, cloud computing and so on for their clientele. The companies stated their commitment for continued innovation in this sector. The companies strive to provide cost efficient strategies to their clients.
- Revenue: TCS has recorded a higher revenue than Infosys. The company stated that their revenue growth was led by the regional markets and BFSI. With a total contract value of USD 12.2 billion, North America continues to be a home market for TCS. Like Infosys, they also emphasised on the growing traction for modern technologies, especially Gen AI and Agentic AI. Both companies witnessed an increase in their revenue compared to the same quarter last fiscal year.
- Dividend: TCS did not declare the record date or the payment date for their final dividend declared. Infosys proposed the final dividend along with the interim dividend, resulting in a 13.2% increase in this parameter compared to the last fiscal year.
Also read: How to Analyze Quarterly Results of a Company
TCS, Infosys: Share market performance
Against the backdrop of the quarterly reports, the sections below shows how TCS and Infosys fared in the stock market. The details below highlight the stock performance as of 26 April 2025.
The TATA Consultancy Services Ltd. is one of the major IT stocks in India listed under the Nifty 50. Its market position is evident through its 21.16 Lakhs trading volume valued at ₹ 730.05 Crores.
At 15.11 on 29 April 2025, the company stock was trading at ₹3,473.30. The company has a market capitalisation of ₹12,56,706.52 Crores. As per the latest statements, the TCS stock has recorded an EPS of ₹33.79. The stock has delivered a return of -11.0% over one year.
The PE ratio of TCS stock stands at 25.53, whereas the PE ratio of Nifty IT is 26.9. Therefore, the PE ratio of TCS is almost similar to the IT industry average. TCS stock experiences a daily volatility of 1.35. A stock volatility of around 1% is typical to Indian markets. However, it might change with the changing market dynamics.
Infosys Ltd. is one of the major IT stocks in India listed under the Nifty 50. Its market position is evident through its 87.33 Lakhs trading volume valued at ₹ 1318.20 Crores. Its trading volume is greater than that of TCS.
At 15.17 on 29 April 2025, the stock was trading at ₹ 1,495.30. The market capitalisation of Infosys Ltd. stock is ₹ 6,21,037.48 Crores. According to the latest reports, the company recorded an EPS of ₹16.98. The company offered a return of 3.30 % over one year.
The PE ratio recorded by the stock is 23.01. It is less than that recorded by TCS. PE ratio indicates the confidence of investors in a particular stock. Moreover, the stock experiences a daily volatility of 1.59. A stock volatility of around 1% is typical to Indian markets. However, it might change with the changing market dynamics.
Bottomline
The two prominent participants of the Indian IT landscape, TCS and Infosys, have incorporated innovative solutions to mitigate client problems. The quarterly reports of the companies highlight their competitive fiscal performance.
TCS posted higher revenue from operations and a stronger Return on Capital Employed (ROCE), while Infosys also delivered a strong quarterly performance. The operating profit margin of the two companies had a difference of only 2%.
It is important to note that in this rapidly evolving tech space, with emerging markets of AI and cloud computing, strong financial health is essential for continued innovation. A lack of financial health can adversely impact liquidity, which in turn can restrict growth.
Also read: Quarterly Results and Their Impact on Stock Market Trends
