Tata Technologies reports revenue growth and improved margins in Q3 FY2025

Tata Technologies Limited has announced its financial results for the quarter ended December 31, 2024, showcasing steady growth in revenue and profitability. The company reported a total operating revenue of ₹1317.4 crore, reflecting a year-on-year (y-o-y) increase of 2.2 per cent and a quarter-on-quarter (q-o-q) rise of 1.6 per cent. The services segment revenue stood at ₹1012.7 crore, marking a 1.2 per cent y-o-y growth and a 0.8 per cent q-o-q increase. In constant currency terms, the services segment revenue witnessed a q-o-q growth of 1.1 per cent.

Tata Technologies achieved an operating EBITDA of ₹234 crore, with an EBITDA margin of 17.8 per cent. Earnings before interest and taxes (EBIT) rose 3.1 per cent Q-o-Q to ₹211.9 crore , with the EBIT margin improving by 20 basis points (bps) q-o-q to 16.1 per cent.

Net income for the quarter came in at ₹168.6 crore, reflecting a 7.1 per cent sequential growth. The net margin improved by 70 bps q-o-qto 12.8 per cent.

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Additionally, the company recorded a 20 bps sequential improvement in last twelve months (LTM) attrition, bringing it down to 12.9 per cent. Tata Technologies’ workforce strength stood at 12,659 employees at the end of the quarter.

Warren Harris, Chief Executive Officer and Managing Director, said: “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, Gen AI, and Embedded Software Solutions, fostering measured optimism for Q4 and FY26.”

He added, “We are also investing in advanced tools and capabilities to position ourselves for accelerated growth as policy clarity improves and investments in new product development rebounds.”

Savitha Balachandran, Chief Financial Officer, said: “I am pleased with our Q3 performance, marked by 1.7 per cent top-line growth and a 7 per cent sequential increase in PAT. This performance underscores the strength and adaptability of our diversified service offerings, which enabled us 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 per cent 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.”

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