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Informist, Monday, May 4, 2026

By Avishek Rakshit

KOLKATA – Global product engineering and digital services company Tata Technologies Ltd. Monday reported robust growth in its top line and bottom line for the March quarter. It also beat Street's estimates on account of strong execution of projects, improving order book visibility, and rising order wins.

Tata Technologies reported over 15% on quarter growth in consolidated revenue to INR 15.72 billion for the March quarter as against the Street's estimate of INR 15.26 billion. In constant currency terms, the revenue grew over 12% on quarter to nearly $171 million.

The consolidated net profit increased manifold on quarter to INR 2.04 billion as against INR 66.40 million in the December quarter and beat the Street's projection of INR 1.88 billion.

However, the net profit in the March quarter includes an exceptional item of INR 561 million from revised provisions made towards the new labour codes. The incremental impact of the new labour codes for the year ended March, consists of a gratuity of INR 568.2 million and long-term compensated absences of INR 269.2 million. Excluding the exceptional items and tax, the profit increased nearly 22% on quarter to INR 2.27 billion.

The company's revenue from the services segment increased 15% on quarter to 12.20 billion and the top line from technology solutions segment grew 15.4% sequentially to INR 3.53 billion. In constant currency terms, sales from the services segment grew around 12% on quarter to $132.6. million.

"This marks a clear inflection for the business, with growth broadbased rather than concentrated in any single customer or program," Warren Harris, chief executive officer and managing director at Tata Technologies, said in a statement.

During the quarter, Tata Technologies secured a multi-year, multi-million-dollar full vehicle engineering program with a leading Japanese automotive original equipment manufacturer, marking a scaled entry into the Japanese market and strengthening its Asia footprint. It also bagged a contract from an European luxury automotive original equipment manufacturer for product life cycle management services across all their product domains.

Among many other contracts, Tata Technologies also signed a multi-year engagement with a tier 1 automotive supplier for a superscale global engineering centre mandate.

"Strong execution against guidance, improving order book visibility, and rising wins in full vehicle programs – which serve as a strategic wedge to deepen life cycle engagement and enable systematic expansion across adjacent services – reinforce our confidence in FY27, where we continue to expect double-digit organic growth with sustainable margin expansion," Harris said in the statement.

Tata Technologies' operating earnings before interest, tax, depreciation, and amortisation increased by nearly 31% on quarter to INR 2.52 billion and the EBITDA margin increased to 16% in the March quarter as against 14.1% in the December quarter. The EBIT margin improved to 14% in Jan-Mar as against 12.6% in Oct-Dec.

"Margins expanded on the back of operating leverage and sustained focus on efficiency," Uttam Gujrati, the company's chief financial officer, said in the statement.

During the year ended March, Tata Technologies' consolidated sales increased nearly 7% on year to over INR 55 billion, but the consolidated net profit declined over 19% on year to INR 5.47 billion. In constant currency terms, the revenue was up 1.3% on year to $619.80 million.

Tata Technologies has decided to pay a special dividend of INR 3.35 per share and a final dividend of INR 8.35 per share.

"As we enter the new fiscal year, we do so with strong momentum and remain firmly focused on operational rigour to drive durable growth and profitability," Gujrati said.

The company's attrition rate in the past 12 months was 16.2% in the March quarter as against 15.8% in the December quarter. Total headcount increased marginally to 12,646 employees in the March quarter as against 12,580 personnel in the December quarter.

On Monday, shares of Tata Technologies closed 1.67% higher at INR 591.05 on the National Stock Exchange. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Deepshikha Bhardwaj

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