Tata Technologies delivered a challenging third-quarter performance, reporting a dramatic 96% year-on-year decline in consolidated net profit. The IT services company's bottom line was nearly wiped out, falling to just ₹6.60 crore compared to ₹169 crore in the corresponding quarter of the previous year.

Financial Performance Overview

Despite the severe profit decline, Tata Technologies managed to register growth on the revenue front. The company reported a 3.48% increase in consolidated revenue, reaching ₹1,366 crore during the quarter compared to ₹1,320 crore in the same period last year. This revenue growth indicates continued business activity and client engagement, even as profitability came under significant pressure.

Business Context

Tata Technologies operates as a specialized engineering and design services provider, serving prominent automotive clients including Jaguar Land Rover and Tata Motors. The company's client base positions it within the automotive technology and engineering services sector, where it provides critical design and development support.

Market Impact

The stark contrast between revenue growth and profit decline suggests significant margin compression during the quarter. While the company maintained its ability to generate business and grow its top line, operational challenges or increased costs appear to have severely impacted profitability. The 96% profit decline represents one of the most significant quarterly declines for the company, highlighting the magnitude of the challenges faced during this period.

Tata Technologies Limited has completed the allotment of 20,751 equity shares under its employee stock option scheme, marking another step in the company's employee incentive program. The Nomination and Remuneration Committee approved this allotment through a circular resolution dated January 9, 2026, under the 'Tata Technologies Limited Share based Long Term Incentive Scheme 2022'.

Share Capital Enhancement

The allotment has resulted in an increase in the company's paid-up equity share capital structure. Following this issuance, the financial impact on the company's capital base is clearly defined:

Allotment Details and Pricing Structure

The 20,751 equity shares were issued under two different pricing categories on January 9, 2026. The breakdown of the allotment demonstrates the varied exercise prices under the ESOP scheme:

The distinctive numbers for the newly allotted shares range from 405743605 to 405764355, with the ISIN number INE142M01025 for demat issuance.

Regulatory Approvals and Compliance

Tata Technologies had secured the necessary regulatory approvals well in advance of this allotment. The company received in-principle approval from the National Stock Exchange of India Limited through letter no. NSE/LIST/41259 dated May 22, 2024, and from BSE Limited via letter no. DCS/IPO/TL/ESOP-IP/3175/2024-25 dated May 23, 2024.

The newly allotted equity shares will rank pari-passu and are identical in all respects with the existing equity shares, including payment of dividend and other rights. No lock-in period applies to these shares, and no additional listing fees are payable for this allotment.

Corporate Structure Impact

The allotment represents a marginal increase in the company's equity base, with the total issued shares now standing at 405,764,355. This ESOP implementation aligns with the company's employee retention and incentive strategies while maintaining compliance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.