Tata Technologies Reports 12% Quarter-on-Quarter Increase in Net Income

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Image Courtesy: Tata Technologies

Tata Technologies Limited (BSE: 544028, NSE: TATATECH), a prominent global leader in product engineering and digital services, has disclosed its financial performance for the quarter ending March 31, 2025. Tata Technologies has reported strong financial results for the fiscal year 2025, with the company achieving a total operating revenue of ₹51,685 million.

This reflects the company’s continued growth and solid performance across its operations. Operating EBITDA for the year stood at ₹9,341 million, which resulted in an EBITDA margin of 18.1%. These figures highlight Tata Technologies’ ability to maintain profitability while expanding its business.

Over the past three years, the company has demonstrated a consistent upward trajectory in its financial performance. Revenue has grown at a compound annual growth rate (CAGR) of 13.6%, while operating EBITDA has expanded at a CAGR of 13%. This steady growth is a testament to the company’s ability to scale its operations and deliver value to stakeholders. In FY’25, Tata Technologies also secured 17 significant contracts, including one deal surpassing $500 million, two deals valued at over $50 million each, and another valued at over $20 million.

In recognition of the company’s strong performance, the board has proposed a final dividend of ₹8.35 per share, along with a special dividend of ₹3.35 per share. These dividends are subject to shareholder approval at the upcoming Annual General Meeting (AGM). This proposal reflects Tata Technologies’ commitment to delivering value to its shareholders and rewarding them for their continued support.

For the quarter ending March 31, 2025, Tata Technologies reported operating revenue of ₹12,857 million, maintaining its strong momentum. Revenue from the services segment amounted to ₹10,241 million, marking a 1.1% increase compared to the previous quarter. When expressed in USD terms, revenue from the services segment was stable at $118.1 million, showing no significant change on a constant currency basis, indicating steady demand and operational efficiency.

The company also reported an improvement in its operating EBITDA for the quarter, which stood at ₹2,334 million, resulting in an EBITDA margin of 18.2%. This is an increase from 17.8% in the previous quarter, highlighting improved operational efficiency. Net income for the quarter reached ₹1,889 million, reflecting a 12.0% increase from the prior quarter and a 20.2% year-on-year growth. The net margin improved to 14.7%, up from 12.8% in the previous quarter and 12.1% year-on-year. However, the attrition rate for the past 12 months was 13.2%, slightly higher than the 12.9% recorded in the previous quarter.

Warren Harris, CEO and Managing Director, commented: “We are pleased with our strong performance in fiscal year 2025. We secured 17 significant deals, including one over $500 million, and grew our client base with 44 customers now exceeding the million-dollar revenue mark. Our prospects for the medium-to-long term remain promising, especially in the automotive engineering sector, driven by advances in electric, autonomous, and sustainable mobility. Our expertise in SDV solutions and AI across the product lifecycle positions us well for the ongoing sector transformation.”

Savitha Balachandran, CFO, added: “This quarter, we delivered solid profitability and cash flow despite the challenging environment. FY’25 marks our fourth consecutive year with margins over 18%, and we achieved the highest cash flow in the company’s history. Looking ahead, we will continue to focus on operational efficiency while strategically investing in talent and capabilities to create long-term value.”

Tata Technologies is collaborating with several leading global companies to drive innovation across various sectors. The company is working with a prominent Tier 1 automotive supplier to develop advanced software solutions aimed at optimizing energy distribution across multiple battery packs in commercial vehicles. In addition, Tata Technologies has been tasked with designing and developing both interior and exterior trims for a major Asian automotive OEM, while also managing a concurrent engineering project for their facelift vehicle program.

To further expand its global reach, Tata Technologies is setting up an offshore development center for a leading international OEM. This center will focus on providing comprehensive product engineering, embedded software, and digital enterprise services. Additionally, the company is collaborating with a well-known North American electric vehicle manufacturer to enhance its ERP systems, drive digital transformation, and improve supply chain transparency, contributing to the evolution of the automotive industry.

In line with its commitment to education and innovation, Tata Technologies is working with the government of Uttar Pradesh to modernize and upgrade 62 ITIs across the state. Moreover, the company has signed a memorandum of understanding (MOU) with RV College of Engineering to establish a Center for Invention, Innovation, Incubation & Training (CIIIT), fostering a hub for new ideas and technological advancements.

Tata Technologies (BSE: 544028, NSE: TATATECH) is a global leader in product engineering and digital services, committed to empowering customers to create better products and experiences. We support businesses in conceptualizing, developing, and delivering safer, cleaner products that enhance quality of life for all stakeholders, aligning with our mission to #EngineeringABetterWorld.