TATA CONSULTANCY SERVICES FRANCE : revenue, balance sheet and financial ratios

In 2025, TATA CONSULTANCY SERVICES FRANCE achieves revenue of 380.7 M€. Over the period 2016-2025, the company shows strong growth with a CAGR (compound annual growth rate) of +15.7%. Vs 2024, growth of +15% (331.4 M€ -> 380.7 M€). After deducting consumption (0 €), gross margin stands at 380.7 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 250.1 M€, representing 65.7% of revenue. Positive scissor effect: EBITDA margin improves by +67.5 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 5.7 M€, i.e. 1.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 249%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 3%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.5 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 2.2% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 84.77. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 0.2x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 105 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 0 days. The gap of 105 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 77 days of revenue, i.e. 81.9 M€ to permanently finance. Over 2016-2025, WCR increased by +591%, requiring additional financing.

Based on 215 transactions of similar company sales (all years), the value of TATA CONSULTANCY SERVICES FRANCE is estimated at 142 169 029 € (range 56 699 120€ - 578 245 023€). With an EBITDA of 250 137 000€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.16x (conservative valuation). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.