Tata Tech Q3 results: Tata Technologies, on Friday, January 16, reported a steep 96% year-on-year (YoY) fall in its consolidated profit for the December quarter of the current financial year (Q3FY26) due to the impact of new labour codes.
According to the company's exchange filing, Tata Technologies' consolidated profit (attributable to the shareholders of the company) stood at ₹6.64 crore for Q3FY26 compared to ₹168.64 crore in the same quarter last year and ₹165.50 crore in Q2FY26.
The sharp decline in the company's profit was largely due to a statutory impact of ₹139.87 crore during the quarter arising from new labour codes.
Consolidated revenue from operations for the quarter rose 3.7% YoY to ₹1,365.73 crore from ₹1,317.38 crore in the same quarter last year.
Operating EBITDA stood at ₹192.9 crore, down 17.6% YoY and 7.2% QoQ, while operating EBITDA margin for the quarter under review dropped to 14.1% from 17.8% YoY and 15.7% QoQ.
The company added 178 employees during the quarter, as the total headcount by the end of Q3FY26 stood at 12,580 compared to 12,402 by the end of Q2FY26.
Last twelve months voluntary attrition was 15.8% in Q3FY26 compared to 15.1% in Q2FY26 and 12.9% in Q3FY25.
“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," said Warren Harris, Chief Executive Officer and Managing Director, Tata Technologies.
"We expect sequential revenue growth of over 10%, signalling a clear inflection point. More importantly, the structural changes we’ve driven — portfolio diversification, reduced concentration risk, and the Es-Tec acquisition — have transformed our growth engine into one that is broader and stickier,” Harris said.
“We made steady progress on our strategic priorities during the quarter. ES-Tec integration is on track and already creating joint opportunities. Margin headwinds from Q3 are behind us, and we expect to return to—and exceed—the Q2 adjusted margin run-rate," said Uttam Gujrati, Chief Financial Officer, Tata Technologies.
Tata Technologies share price closed 0.58% higher at ₹650.40 on the BSE on Friday, January 16.
