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.

Tata Technologies Limited announced its financial results for the third quarter of fiscal year 2026, ending December 31, 2025, revealing mixed performance with significant exceptional charges impacting profitability and operational metrics. The company's Board of Directors approved the unaudited standalone and consolidated financial results at their meeting held on January 16, 2026.

Q3 EBITDA Performance Analysis

The company's operational profitability faced considerable pressure during Q3FY26, with EBITDA declining significantly year-on-year. The key operational metrics highlight the impact of regulatory changes and business challenges:

The EBITDA margin compression of 364 basis points reflects the operational challenges faced by the company, including the impact of new Labour Codes and changing business dynamics in the engineering services sector.

Standalone Financial Performance

The company's standalone operations faced challenges during Q3FY26, primarily due to regulatory changes. Key financial metrics for the quarter are presented below:

The company reported a net loss of ₹1.50 crore in Q3FY26 compared to a profit of ₹103.24 crore in the corresponding quarter of the previous year. This significant decline was primarily attributed to exceptional charges of ₹139.87 crore related to the statutory impact of new Labour Codes implemented by the Government of India.

Consolidated Financial Results

On a consolidated basis, Tata Technologies demonstrated better operational performance with revenue growth across its business segments:

The consolidated revenue from operations increased by 3.67% year-on-year to ₹1,365.73 crore, driven by growth in both Services and Technology Solutions segments. However, net profit declined significantly to ₹6.64 crore from ₹168.64 crore in Q3FY25, primarily due to exceptional items totaling ₹163.86 crore.

Impact of New Labour Codes

The Government of India notified four new Labour Codes on November 21, 2025, which had a material impact on the company's financial results. The incremental impact of ₹139.87 crore consisted of:

• Gratuity provisions: ₹114.00 crore
• Compensated absences: ₹25.87 crore

These changes primarily arose due to modifications in wage definitions under the new regulatory framework. The company classified this impact as an exceptional item given its materiality and non-recurring, regulatory-driven nature.

Strategic Acquisition and Business Expansion

During Q3FY26, Tata Technologies completed a significant acquisition to strengthen its automotive engineering capabilities. The company, through its wholly-owned subsidiary Tata Technologies Pte Ltd (Singapore), acquired 100% of Es-Tec GmbH, Germany, and its subsidiaries.

The Es-Tec Group specializes in high-end automotive engineering services with expertise in Advanced Driver Assistance Systems (ADAS), Connected Driving, and Digital Engineering. To fund this acquisition, Tata Technologies Pte Ltd secured a long-term bank borrowing of US$60 million, repayable over five years.