Tata Technologies Q3 net profit slumps 1% to ₹168.6 crore, revenue rises 2%

The fall in the company’s net profit was largely due to a 3.15% rise in its total expenses, which stood at ₹1,119.31 crore for the quarter, up from ₹1,085.14 crore in the corresponding period last year.

Meanwhile, the company’s revenue from operations stood at ₹1,317.4 crore, rising 2.2% from ₹1,289.5 crore in Q3 of the 2024-25 fiscal.

Service segment contributed 77% to total revenue

The firm’s revenue from the services segment was at ₹1,012.7 crore, accounting for 76.9% of its total revenue. The remaining 23.13% of the revenue came from the technology solutions segment, which stood at ₹304.68 crore.

The company's EBITDA fell 1.1% to ₹234.1 crore from ₹236.6 crore, and its EBITDA margin contracted to 17.8% from 18.4% in Q3 FY24.

9M FY25 earnings

For the nine months (9M) that ended in December 2024, Tata Technologies declared a 6.5% drop in net profit to ₹488.08 crore from ₹522.13 crore in the year-ago period.

The company’s revenue from operations stood at ₹3,882.80, rising 1.74% from ₹3,816.15 for 9M FY24.

“I am encouraged by the resilience our business has demonstrated in uncertain economic conditions with revenue growth across both our business segments. We secured four large deals this quarter, and our pipeline remains healthy. We are seeing opportunities across Digital Engineering, Smart Manufacturing," Warren Harris, CEO and MD of Tata Technologies said.

Harris said that Gen AI and Embedded Software Solutions will foster measured optimism for Q4 and FY26. He added that Tata Technologies is investing in advanced tools and capabilities to position itself for accelerated growth as “policy clarity improves and investments in new product development rebound”.

“I am pleased with our Q3 performance, marked by 1.7% top-line growth and a 7% sequential (quarter-on-quarter) increase in PAT,” Savitha Balachandran, CFO of Tata Technologies commented.

Balachandran said that the company’s performance underscored the strength and adaptability of its “diversified service offerings, which enabled it to navigate the complexities of the quarter effectively”.

“Our disciplined execution drove strong cash conversion in the first nine months, with free cash flow exceeding 100% of net income. This further strengthened our balance sheet, with a net cash position of $154 million at the end of December. We remain dedicated to delivering sustainable, long-term value for all stakeholders," she highlighted.

Tata Technologies shares closed in the green at ₹816, up 0.44% on the NSE on Tuesday. However, the results came after the market closed.

Tata Technologies has a total market capitalisation of ₹38,603.25 crore as of January 21, 2024, on the National Stock Exchange.