Tata Technologies shares trade lower after net profit declines in Q1; revenue sees marginal growth

The company’s operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell by 7.7% YoY to ₹231 crore. During Q1 of fiscal 2025, Tata Technologies witnessed its operating EBITDA contract to 18.2% from 19.9% in the corresponding period last year. The net profit margin for the quarter contracted from 15.2% to 12.8%.

During the quarter, Tata Technologies’ Services Segment made 78% of the company’s operating revenue compared to 79% in the previous year. Meanwhile, the Technology Solutions Segment accounted for 22% of the operating revenue compared to 21% last year.

Under the Services Segment, the Auto sector contributed 85% of the revenue during Q1, while 15% came from the non-auto sector.

Warren Harris, chief executive officer and managing director of Tata Technologies, stated that the overall market conditions have remained favourable as the manufacturing sector invests in alternative propulsion systems, software-defined products and services, and smart manufacturing. The company’s service business is expected to see revenue growth in the coming quarters.

“Confidence in our full-year prospects is fueled by our order book, continued positive momentum within our Anchor accounts, and tailwinds that we expect to continue to intersect with across automotive, aerospace, and industrial heavy machinery,” he said.

Tata Technologies announced on Thursday that the company has partnered with Arm to drive innovation in software-defined vehicles (SDVs). The company signed a Memorandum of Understanding (MoU) with Arm to develop automotive software and systems solutions for SDVs.

The company's shares have declined by nearly 16% since the beginning of the year, and the stock has lost over 24% in the past year.