TCS Secures Major BSNL Order Worth ₹2,903 Crore

for Nationwide 4G Rollout🚀

Wed May 21, 2025

In a significant boost to its telecom solutions portfolio, Tata Consultancy Services (TCS) has announced a fresh purchase order from Bharat Sanchar Nigam Limited (BSNL) for the planning and implementation of a large-scale 4G mobile network infrastructure. This new development strengthens TCS's standing in India's telecom sector, reinforcing its commitment to supporting government-led digital connectivity initiatives.

📡 What Does the BSNL Purchase Order Involve?

As per the official statement released on May 20, 2025, TCS has received an Advance Purchase Order (APO) worth ₹2,903.22 crore (inclusive of taxes) from BSNL. The project covers:

Planning & Engineering of the mobile network
Supply, Installation & Testing
Commissioning and Annual Maintenance
Deployment across 18,685 sites across India

This order is subject to specific conditions and documentation, post which BSNL will issue detailed Purchase Orders. The initiative reflects BSNL's aggressive push towards reviving its position in the telecom space with nationwide 4G coverage.

📈 TCS Share Performance and Market Reaction

Following the announcement, TCS shares saw a modest gain of over 1%, trading at ₹3,535 on the BSE, after opening higher at ₹3,503. The company's market capitalization now stands at a solid ₹12.73 lakh crore, with a trading turnover of ₹15.95 crore and approximately 0.45 lakh shares exchanged.

While the stock is currently above its 10, 20, 30, and 50-day moving averages, it still trades below its 100, 150, and 200-day averages, indicating a potential medium-term resistance. The Relative Strength Index (RSI) at 51.3 shows that the stock is currently in the neutral zone.

📊 Stock Trend Overview: 1-Year vs. 2-Year Performance

1-Year Performance: Down by 8%
2-Year Performance: Up by 9.26%

This reflects a cautious recovery in the stock's longer-term trajectory, with fresh orders like this BSNL deal expected to add momentum.

💹 TCS Financial Snapshot – Q4 FY25

In its latest financial report, India's largest IT services exporter posted a 1.68% YoY decline in net profit to ₹12,224 crore for the March quarter. However, the company maintained healthy profitability levels:

Operating Margin: 24.3%
Net Margin: 19%
Final Dividend Proposed: ₹30 per share

🧠Conclusion: More Than Just a Contract

This BSNL 4G contract isn't just another business deal - it represents a strategic partnership in India's digital transformation journey. For TCS, it's a golden opportunity to:

🔹 Strengthen its position in the government telecom sector
🔹 Showcase its network implementation capabilities at scale
🔹 Contribute to bridging the digital divide in rural India

While the financial impact will be seen in coming quarters, the symbolic value of this deal is immediate. It positions TCS as a key player in India's telecom modernization story, potentially opening doors to more such projects.

For investors, this development suggests TCS's diversification strategy is bearing fruit. However, as always, we recommend thorough research before making any investment decisions. The telecom sector's competitive landscape and technological shifts (like impending 5G rollout) will be crucial factors to watch.

What's your take? Does this deal make you more bullish on TCS's prospects? Share your thoughts in the comments!

⚠️ Disclaimer: This article is for informational purposes only and should not be considered as investment advice. 📈 Always consult a trusted advisor from MBC Trading Platform before making any investment decisions.

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