Tata Technologies Q3 results: Net profit declines 96% to ₹6.64 crore

Global product engineering and digital services firm Tata Technologies Ltd on Friday reported a 96 per cent decline in consolidated profit after tax at Rs 6.64 crore in the third quarter ended December 31, 2025, primarily on account of the statutory impact of new labour codes.

The company had posted a consolidated profit after tax of Rs 168.64 crore in the corresponding period of the previous fiscal, Tata Technologies said in a regulatory filing.

Consolidated revenue from operations in the quarter under review stood at Rs 1,365.73 crore, as against Rs 1,317.38 crore in the year-ago period.

Total expenses in the third quarter were higher at Rs 1,217.99 crore, as compared to Rs 1,119.31 crore in the same period last fiscal, it said.

 

The company said it has presented the incremental impact of "statutory impact of new Labour Codes" under "exceptional items" comprising gratuity of Rs 114 crore and compensated absences of Rs 25.87 crore, primarily arising due to a change in wage definition under the four new Labour Codes notified by the government on November 21, 2025.

"The third quarter demonstrated the resilience and strength of our business, delivering growth despite seasonal softness and temporary headwinds," Tata Technologies Ltd CEO and Managing Director Warren Harris said.

With strong vertical performance, six strategic deal wins, and continued investment in delivery capacity, he said, "We are poised for a sharp acceleration in Q4. We expect sequential revenue growth of over 10 per cent, signalling a clear inflection point."  Tata Technologies CFO, Uttam Gujrati, said, "margin headwinds from Q3 are behind us, and we expect to return to and exceed' the Q2 adjusted margin run-rate."  In the quarter ended December 31, 2025, the company, through its wholly-owned subsidiary, Tata Technologies Pte Ltd (Singapore), completed a 100 per cent acquisition of Es-Tee Group of Germany, which is into high-end automotive engineering services with deep know-how in ADAS, connected driving, and digital engineering, the filing said.

The total purchase consideration comprised fixed consideration of 51.4 million euros (Rs 532.29 crore) paid on the acquisition completion date, November 27, 2025 and a variable consideration up to 14.6 million euros (Rs 151.77 crore) based on the achievement of operational milestones payable over the next two years, it added.