Tata Technologies Posts ₹1,703 Million Net Profit in Q1 FY26, Up 5.1% Year-on-Year

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Image Courtesy: Tata Technologies

Tata Technologies Limited a global provider of engineering and digital services, announced its financial performance for the quarter ending June 30, 2025. Tata Technologies reported consolidated operating revenue of ₹12,443 million for the quarter, reflecting a 3.2% decrease compared to the previous quarter. This decline comes amid ongoing market challenges, but the company continues to maintain a strong service delivery focus.

Revenue from the Services segment was ₹9,637 million during the quarter. In U.S. dollar terms, this translated to $112.5 million, underscoring the company’s global footprint and diversified client base. Operating EBITDA reached ₹2,001 million, with an EBITDA margin of 16.1%. These figures demonstrate the company’s ability to maintain healthy profitability despite fluctuations in revenue.

Net profit for the quarter rose to ₹1,703 million, marking a 5.1% increase compared to the same period last year. This growth highlights improved operational efficiencies and effective cost management. The net profit margin also improved, standing at 13.7%, up from 12.8% year-over-year. This increase reflects the company’s focus on sustaining profitability even in a competitive environment.

Attrition over the last twelve months was recorded at 13.8%, slightly higher than the 13.2% reported in the previous quarter. Workforce stability remains a priority as the company continues to invest in talent retention. Total employee strength at the end of the quarter was 12,407, supporting the company’s expanding portfolio and ongoing client commitments worldwide.

Warren Harris, CEO and Managing Director, said, “The quarter began cautiously, but we saw growing confidence from clients as it progressed, which helped us secure six important deals. We remain optimistic about sequential growth in Q2 and anticipate a stronger second half of FY26. Our current deal pipeline is more robust than a year ago, boosting our confidence for the future.”

Savitha Balachandran, CFO, added, “Despite a challenging market, we delivered strong cash flow through disciplined execution and effective working capital management. Our focus continues on strategic investments, operational efficiency, and creating lasting value for our stakeholders.”

A leading European luxury automaker has entrusted the company with vital engineering projects, including body design, digital product development, and sustainable technology initiatives. Meanwhile, a major Asian airline has commissioned the firm to develop a comprehensive aircraft docking system, managing every stage from initial design through to installation.

In addition, a global commercial vehicle manufacturer has formed a long-term partnership to create a dedicated offshore development center, providing extensive engineering support. A top North American automotive Tier-1 supplier has also engaged the company to deliver advanced engineering services across multiple divisions. Furthermore, a global automotive contract manufacturer has awarded a multi-year contract for implementing SAP S4 across several plants.

Strengthening its position in the automotive sector, the company has been named a strategic partner by Volvo Cars for product engineering and software development, supporting their transition to sustainable and software-driven vehicles. Additionally, a new collaboration with Emerson has been established to jointly develop innovative testing and validation platforms aimed at next-generation mobility solutions.

Tata Technologies is a global player in engineering and digital technology, dedicated to helping industries innovate across sectors like mobility, manufacturing, aerospace, and agriculture. By enabling clients to build smarter, cleaner, and safer products, the company contributes to a better world and improved quality of life for end-users everywhere.