Earnings Review
Tata Tech Q1 consolidated PAT slumps on high base but beats view
This story was originally published at 18:23 IST on 17 July 2026
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--Tata Tech Apr-Jun consol net profit INR 1.81 bln
--Analysts saw Tata Tech Apr-Jun consol net profit INR 1.80 bln
--Tata Tech Apr-Jun consol revenue INR 16.65 bln
--Analysts saw Tata Tech Apr-Jun consol revenue INR 16.20 bln
--Tata Tech Apr-Jun consol net profit INR 1.81 bln vs INR 2.04 bln qtr ago
--Tata Tech Apr-Jun consol revenue INR 16.65 bln vs INR 15.72 bln qtr ago
--Tata Tech Q1 consol employee cost INR 8.15 bln vs INR 7.63 bln qtr ago
--Tata Tech Apr-Jun svcs ops sales INR 12.97 bln vs INR 12.20 bln qtr ago
--Tata Tech Apr-Jun tech segment sales INR 3.68 bln vs INR 3.53 bln qtr ago
--Tata Tech Apr-Jun svcs sales $136.6 mln, up 4.3% QoQ in constant currency
--Tata Tech Apr-Jun consol operating EBITDA INR 2.67 bln, up 6.1% on qtr
--Tata Tech Apr-Jun consol EBITDA margin 16.1% vs 16.0% qtr ago
--Tata Tech MD: Aim to deliver strong double-digit organic sales growth FY27
--Tata Tech headcount 12,579 on Jun 30 vs 12,646 qtr ago
--Tata Tech last 12-month attrition 16.0% vs 16.2% qtr ago
--Tata Tech Q1 consol revenue $175.4 mln, up 4.3% QoQ in constant currency
--Tata Tech Apr-Jun consol EBIT margin 14.3% vs 14.0% qtr ago
By Arya S. Biju
MUMBAI – Tata Technologies Ltd.'s consolidated net profit for the June quarter declined on a sequential basis mainly due to a one-time income and deferred tax in the trailing quarter. The fall in net profit was also attributable to the company's total expenses rising at a similar pace compared to total sales during the quarter under review. The fall in bottom line was, however, not as bad as the Street had anticipated.
The product engineering and digital services company's consolidated net profit for the reporting quarter declined over 11% sequentially to INR 1.81 billion, but was still above the INR 1.80 billion estimated by the Street. During the March quarter, the company had reported a one-time income of INR 561 million from revised provisions made towards the new labour codes and a deferred tax of INR 444.1 million.
Tata Technologies' consolidated revenue from operations for the quarter ended June grew nearly 6% sequentially to INR 16.65 billion, also better than the INR 16.20 estimated by the Street. On a year-on-year basis, the company's bottom line rose over 6% and its top line jumped nearly 34%.
Revenue from the company's largest segment, services, grew over 6% on quarter and around 35% on year to INR 12.97 billion. Sales from the company's technology solutions vertical grew over 4% on quarter and 31% on year to INR 3.68 billion.
In constant currency terms, the company's overall revenue for the reporting quarter grew 4.3% sequentially and over 25% on year. This was way better than the 0.5-2.0% sequential rise in constant currency sales estimated by analysts. In dollar terms, the company's revenue grew around 3% sequentially and nearly 21% on year to $175.4 million. Sales from the services segment were at $136.6 million, up 3% sequentially and over 21% on year. In constant currency terms, revenue from the segment rose over 4% sequentially and 24% on year.
The company's total expenses during the quarter grew 5.6% sequentially to INR 14.59 billion, similar to the 5.9% rise in total sales. The rise in total expenses was mainly on the back of a near 7% on-quarter rise in its largest cost, employee benefit expense, at INR 8.15 billion. Its expenses related to purchases of technology solutions grew around 7% on quarter to INR 2.88 billion.
Tata Technologies' consolidated operating earnings before interest, tax, depreciation, and amortisation for the reporting quarter was INR 2.67 billion, up 6% on quarter and around 34% on year. Its consolidated earnings before interest, and tax for the quarter grew over 8% on quarter and 31% on year to INR 2.39 billion. The company's consolidated operating EBITDA margin for the quarter expanded 10 basis points sequentially to 16.1% and its consolidated EBIT margin improved 30 bps on quarter to 14.3%.
The company lost 67 employees in the June quarter, with its total headcount falling to 12,579 as of Jun. 30. Its last 12-month voluntary attrition declined to 16% from 16.2% as of Mar. 31. During the June quarter, the company added one client each in both the INR 1 million-INR 5 million and INR 5 million-INR 10 million categories.
"The demand environment remains constructive, reflected in healthy activity across our strategic growth areas, a robust pipeline of large opportunities, improving deal conversion, and greater visibility across key customer programs," Warren Harris, chief executive officer and managing director of the company, said in a post-earnings press release. "Combined with our ongoing investments in AI, disciplined focus on operational efficiency, and continued portfolio diversification, we believe we are well positioned to deliver strong double-digit organic revenue growth in FY27," he added.
Tata Technologies announced its quarterly earnings after market hours on Friday. Ahead of the announcement, shares of the company closed nearly 1% lower at INR 758.05 on the National Stock Exchange. End
US$1 = INR 96.2800
Edited by Avishek Dutta
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