- Tata Technologies’ Q3 FY26 net profit dropped 96% sequentially to Rs 6.64 crore
- Consolidated revenue rose 3.2% to Rs 1,366 crore from Rs 1,323 crore in Q2
- EBIT declined 11.3% to Rs 157 crore, with margins shrinking to 11.5% from 13.4%
Tata Technologies Ltd.'s net profit for the third quarter of FY26 plummeted 96% sequentially, according to an exchange filing on Friday.
The company reported a consolidated bottom-line of Rs 6.64 crore in Q3, as compared to Rs 165.50 crore in the preceding quarter. On a standalone basis, Tata Tech registered a net loss of Rs 1.5 crore, slipping from a profit of Rs 133.30 crore.
The revenue, on the other hand, went up 3.2% to Rs 1,366 crore from Rs 1,323 crore in the quarter ended Sept. 30, 2025. Earnings before tax and interest declined 11.3% to Rs 157 crore from Rs 177 crore, while margin contracted to 11.5% from 13.4% in Q2 FY26.
The company also said that it faced a one-time cost of Rs 164 crore in the third quarter owing to the Centre's new labour codes.
Tata Tech Q3 Results (Consolidated, QoQ)
- Revenue up 3.2% at Rs 1,366 crore versus Rs 1,323 crore
- Net profit down 96% at Rs 6.6 crore versus Rs 166 crore
- EBIT down 11.3% at Rs 157 crore versus Rs 177 crore
- Margin at 11.5% versus 13.4%
- Q3 saw a one-time cost of Rs 164 crore due to the new labour codes
The company's total operating revenue stood at Rs 1,365.7 crore, up 3.2% sequentially. The services segment revenue rose 4.7% sequentially to Rs 1,060.2 crore.
In US dollar terms, the services segment revenues came in at $118.6 million, up 2.6% QoQ. The adjusted net income stood at Rs 135 crore, whereas the net income margin was at 9.9%.
The last 12-month attrition stood at 15.8%, as compared to 15.1% in the preceding quarter. The workforce strength, however, has risen from 12,402 to 12,580.
"Q3 demonstrated the resilience and strength of our business, delivering growth despite seasonal softness and temporary headwinds. With strong vertical performance, six strategic deal wins, and continued investment in delivery capacity, we are poised for a sharp acceleration in Q4. We expect sequential revenue growth of over 10%, signalling a clear inflection point," said Warren Harris, Chief Executive Officer and Managing Director of Tata Tech said.
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