Tata Technologies Limited delivered strong Q3 results with net profit surging to ₹616.00 crore, marking a sharp increase from ₹165.50 crore in the previous quarter. The global product engineering and digital services company reported revenue of ₹1,366.00 crore for the quarter, representing a 3.30% quarter-on-quarter growth from ₹1,323.00 crore.

Financial Performance Overview

The company's Q3 financial metrics demonstrated strong profitability recovery despite some operational challenges:

The services segment emerged as a key growth driver, contributing ₹1,060.00 crore with a robust 4.70% quarter-on-quarter increase. In US dollar terms, services segment revenue reached $118.60 million, up 2.60% sequentially, demonstrating resilience in international markets.

Margin Performance and Profitability

While the company achieved strong profit growth, operating margins faced some pressure during the quarter. Operating EBITDA stood at ₹193.00 crore with an EBITDA margin of 14.10%, compared to 15.70% in the previous quarter.

Adjusted net income, excluding one-time exceptional items related to new labour code provisions and acquisition costs, was ₹135.00 crore, translating to a net income margin of 9.90%.

Operational Metrics and Workforce

The company maintained operational stability with a total workforce strength of 12,580 employees at the end of the quarter. The last twelve months attrition rate stood at 15.80%, reflecting the competitive talent market in the technology sector.

Management Outlook and Strategic Direction

Warren Harris, Chief Executive Officer and Managing Director, expressed confidence about the company's trajectory, stating expectations for sequential revenue growth of over 10% in Q4. He highlighted the impact of structural changes including portfolio diversification, reduced concentration risk, and the ES-Tec acquisition in transforming the growth engine.

Uttam Gujrati, Chief Financial Officer, noted that ES-Tec integration remains on track and is already creating joint opportunities. He emphasized that margin headwinds from Q3 are expected to be behind the company, with expectations to return to and exceed the Q2 adjusted margin run-rate.

Market Performance

Shares of Tata Technologies ended at ₹650.40, gaining ₹3.75 or 0.58% on the BSE, reflecting investor confidence in the company's quarterly performance and future prospects.

Tata Technologies announced its financial results for the quarter ended December 31, 2025, demonstrating resilient performance with operating revenues of ₹13,657 million, marking a 3.2% quarter-on-quarter growth. The global product engineering and digital services company showcased strong momentum across key business segments despite seasonal softness and temporary market headwinds.

Financial Performance Highlights

The company's financial metrics for the quarter ended December 31, 2025, reflect steady operational progress across multiple parameters:

The services segment emerged as a key growth driver, contributing ₹10,602 million in revenues with a robust 4.7% quarter-on-quarter increase. In USD terms, the services segment generated $118.6 million, representing a 2.6% sequential growth, demonstrating the company's ability to navigate currency fluctuations effectively.

Operational Metrics and Workforce

Tata Technologies maintained operational stability with key workforce metrics showing controlled attrition levels. The company's last twelve months (LTM) attrition rate stood at 15.8%, while the total workforce strength reached 12,580 employees. These metrics indicate the company's focus on talent retention and strategic capacity building.

Strategic Business Wins and Market Expansion

The quarter witnessed significant strategic achievements with six major deal wins across diverse automotive segments. Notable contract acquisitions include:

• Full Vehicle Program: Secured strategic partnership with global automotive OEM for end-to-end product development
• Embedded Engineering: Entered whitespace area in embedded and software engineering with leading European automotive OEM
• Sustainability Solutions: Engaged by European luxury automaker for circularity solutions and emissions analysis
• Premium Vehicle Segment: Strategic win with premium European passenger vehicle OEM for vehicle engineering programs
• Chassis & Climate Program: Selected by leading European automotive OEM for three-platform development covering mechanical, E/E, and software

Government Partnerships and Educational Initiatives

Tata Technologies expanded its presence in the education technology sector through significant government partnerships:

These partnerships position the company as a key enabler of technological advancement in India's educational infrastructure, particularly in technical education.

Management Outlook and Strategic Direction

Warren Harris, Chief Executive Officer and Managing Director, emphasized the company's resilience and growth trajectory, stating that Q3 demonstrated business strength despite seasonal challenges. The leadership expects sequential revenue growth exceeding 10% in Q4, indicating a clear business inflection point. The strategic focus on portfolio diversification, reduced concentration risk, and the Es-Tec acquisition has transformed the growth engine into a broader and more sustainable platform.

Uttam Gujrati, Chief Financial Officer, highlighted steady progress on strategic priorities, with ES-Tec integration proceeding on track and creating joint business opportunities. The management expects margin improvements in subsequent quarters, with disciplined workforce strategy and investments in future-ready skills positioning the company for sustainable long-term growth.