TCS shares set for steepest drop since 2008, but profits still up

Business Dec 31, 2025

Tata Consultancy Services (TCS) is closing out 2025 with its shares down 21.4%—the biggest annual fall since 2008.
For FY25, the company posted a solid profit growth of 6%.

Why does this matter?

Even with the stock slump and TCS trailing behind the Nifty 50's recent gains, most analysts are still optimistic—36 out of 51 say "Buy."
The dip is tied to new US H-1B visa rules that could squeeze margins by up to 7%, but TCS is pushing ahead in AI, racking up $1.5 billion in annualized revenue from over 5,000 AI projects—a jump of more than 38% year-on-year.