Tata Technologies, a subsidiary of Tata Motors, began the June quarter on a cautious note, reporting modest single-digit year-on-year (YoY) profit growth, while revenue declined marginally amid a challenging business environment. Ahead of the Q1 results, shares of Tata Technologies ended 1.25% higher at ₹716.75, with a market capitalisation of ₹29,076 crore.

Consolidated operating revenue for Q1 FY26 stood at ₹1,244.3 crore, marking a decline of 3.2% quarter-on-quarter (QoQ) and 1.9% year-on-year (YoY), reflecting a challenging macro environment. Revenue from the services segment came in at ₹963.7 crore, or $112.5 million in U.S. dollar terms.

Despite the contraction in topline, the company managed to post a 5.1% YoY growth in net profit at ₹170.3 crore, up from ₹162 crore in the same quarter last year. However, profit declined 9.8% sequentially from ₹188.9 crore in Q4 FY24.

“While the quarter began on a cautious note, client confidence strengthened steadily as the period progressed, reaffirming long-term commitments to product innovation and digital transformation. This renewed belief in building the future supported strong deal momentum, resulting in six strategic wins,” said Warren Harris, Chief Executive Officer and Managing Director of Tata Technologies.

Looking ahead, the company is optimistic about a sequential recovery in Q2 and anticipates a stronger performance in the second half of FY26, he said. “Our deal pipeline today is more robust than a year ago, and the early momentum we are seeing provides greater visibility and conviction in improved conversion through the year.”

On the operating front, EBITDA for the quarter stood at ₹200.1 crore, down 13.4% YoY, while the EBITDA margin contracted to 16.1% from 18.1% in the corresponding quarter of the previous year.

Employee attrition for the last twelve months (LTM) rose slightly to 13.8%, up from 13.2% in the previous quarter. The company’s workforce strength stood at 12,407 as of June 30, 2025.

Savitha Balachandran, Chief Financial Officer, said, “We achieved strong cash flow performance this quarter through consistent execution and disciplined working capital management, despite operating in a challenging environment.”

“We continued to invest in priority areas, maintained financial strength, and drove efficiency across the value chain. As we progress through the year, our focus remains on executing with agility, strengthening strategic relationships, and delivering sustainable value to our stakeholders,” Balachandran said.