Tata Technologies Posts 3.2% QoQ Revenue Growth in Q3 FY26

Tata Technologies Limited on Thursday reported a sequential improvement in revenues for the quarter ended December 31, 2025 (Q3 FY26), supported by growth in its services business and multiple strategic deal wins, even as margins were impacted by one-time costs.

The Tata Group company posted total operating revenues of ₹13,657 million in Q3 FY26, registering a growth of 3.2% quarter-on-quarter (QoQ). Revenues from the services segment stood at ₹10,602 million, up 4.7% QoQ. In dollar terms, services revenues were reported at $118.6 million, reflecting a 2.6% sequential increase.

Operating EBITDA for the quarter came in at ₹1,929 million, with an EBITDA margin of 14.1%. Adjusted net income stood at ₹1,350 million, translating into a net income margin of 9.9%. The company clarified that Q3 FY26 margins exclude a one-time exceptional impact arising from the implementation of the new labour code and one-off acquisition-related costs.

On the operational front, Tata Technologies reported last-twelve-month (LTM) attrition of 15.8%, while total workforce strength stood at 12,580 employees at the end of the quarter.

Warren Harris, Chief Executive Officer and Managing Director, said the company delivered growth despite seasonal softness and temporary headwinds during the quarter. He highlighted strong performance across verticals, six strategic deal wins, and continued investments in delivery capacity. Harris said the company expects sequential revenue growth of over 10% in the fourth quarter, indicating a potential inflection point. He added that portfolio diversification, reduced client concentration risk, and the Es-Tec acquisition have broadened and strengthened the company’s growth engine.

Chief Financial Officer Uttam Gujrati said Tata Technologies made steady progress on its strategic priorities during the quarter. He noted that the integration of Es-Tec is progressing as planned and has already started generating joint opportunities. According to Gujrati, margin pressures seen in Q3 are expected to ease, with the company targeting a return to, and improvement over, the Q2 adjusted margin run-rate. He added that a disciplined workforce strategy and investments in future-ready skills position the company for sustainable long-term growth.

During the quarter, Tata Technologies secured several strategic wins and recognitions. The company was awarded a full vehicle programme with a global automotive original equipment manufacturer (OEM), strengthening its position in end-to-end product development. It also entered a new whitespace area in embedded and software engineering with a leading European automotive OEM, displacing incumbent suppliers.

In addition, Tata Technologies was engaged by a European luxury automaker to develop circularity solutions, including cradle-to-cradle emissions analysis and sustainable material selection, alongside cost optimisation across key vehicle components. The company also secured a strategic engagement with a premium European passenger vehicle OEM, expanding its role across vehicle engineering and next-generation mobility programmes.

Further, a leading European automotive OEM selected Tata Technologies to lead its chassis and climate programme across three platforms, covering mechanical, electrical and electronic (E/E), and software development, with a focus on cost optimisation and quality improvements.

Beyond the automotive sector, Tata Technologies strengthened its presence in the education and skilling domain. The Government of Uttar Pradesh selected the company to upgrade 121 polytechnic institutes with Industry 4.0 technologies, while the Government of Tamil Nadu awarded it a project to upgrade 44 polytechnics with similar advanced manufacturing and digital capabilities.