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Informist, Friday, Jan. 16, 2026

By Adhithya Aji

MUMBAI – Tata Technologies Ltd. recorded the steepest ever fall in consolidated net profit in the December quarter owing to one-time costs the company incurred due to the new labour codes, which came into effect on Nov. 21. The top line growth also faltered sequentially, with a low single-digit rise.

The engineering and research development company reported a consolidated net profit of INR 66.40 million, down nearly 96% on quarter and on year for the December quarter. The company miserably failed to meet the analysts' estimate of INR 1.56 billion. The company incurred a one-time cost of INR 1.64 billion, which weighed down the metric. This one-time cost includes an amount of INR 1.40 billion due to the implementation of new labour codes. 

The company also incurred a one-time cost of INR 240 million, related to the acquisition of Germany-based Es-Tec GmbH and its subsidiaries. The company executed the acquisition through its Singapore-based wholly owned subsidiary, Tata Technologies Pte. Ltd., as per the filing. Excluding the one—time costs, the bottom line of the company was INR 1.71 billion. 

The revenue of the Tata Group company rose over 3% sequentially and 4% on year to INR 13.66 billion for the reporting quarter. Analysts had pegged the sales at INR 13.59 billion.

Total income of the company rose nearly 2% on quarter and nearly 4% on year to INR 13.98 billion. In this, other income fell nearly 34% sequentially but rose over 15% on year to INR 318 million. Total expenses of the company rose nearly 6% sequentially and 9% on year to INR 12.18 billion. Employee benefits expense, which forms nearly 58% of the overall expenditure, rose over 7% on quarter to INR 6.98 billion. Costs related to purchases of technology solutions fell over 3% on quarter to INR 2.35 billion.

RRevenue from the company's services segment rose nearly 5% on quarter to INR 10.60 billion. In dollar terms, the revenue from this segment rose nearly 3% on quarter but fell 1% on year to $118.6 million. In constant currency terms, the revenue from the services segment rose nearly 4%. The revenue from technology solutions operations rose nearly 2% to INR 3.06 billion for the December quarter. 

The operating earnings before interest, tax, depreciation, and amortisation of the company for the December quarter were INR 1.93 billion, down over 7% on quarter. The technology company's EBITDA margin for the reporting quarter was at 14.1%, down 160 basis points from 15.7% in the trailing quarter. The company's EBIT was at INR 1.72 billion, down nearly 10% on quarter. The EBIT margin contracted 180 basis points sequentially to 12.6%.

"With strong vertical performance, six strategic deal wins, and continued investment in delivery capacity, we are poised for a sharp acceleration in Q4," said Warren Harris, chief executive officer and managing director of the company, in the investor presentation. "We expect sequential revenue growth of over 10%, signalling a clear inflection point."

The employee headcount of the company rose to 12,580 as of Dec. 31, from 12,402 a quarter ago. The last twelve months attrition rate was at 15.8%, higher than 15.1% in the trailing quarter.

Tata Technologies announced its December quarter results Friday post market hours. Shares of the company ended nearly 1% higher at INR 650.60 on the National Stock Exchange.  End 

Edited by Akul Nishant Akhoury

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