Tata Technologies Records Revenue Uptick on Strong Services Business

By Jony Shekhawat | Published Date : January 17, 2026

Tata Technologies posts 3.2% QoQ revenue growth in Q3 FY26, driven by services business and strategic deal wins, while margins remain under pressure due to one-time costs.

Tata Technologies Limited posted improved numbers for the quarter ended December 31, 2025. The company managed to deliver sequential growth in Q3 FY26, even as market conditions remained muted during the period. Management said services growth and new project wins helped support revenues.

Revenue Moves Up Sequentially

Table of Contents

1. Revenue Moves Up Sequentially

2. EBITDA Affected by One-Time Expenses

3. Employee Strength and Attrition

4. Management Remains Positive on Growth

5. New Deals Strengthen Automotive Work

6. Expansion in Education and Skilling

7. Looking Ahead

Also Read: Electric Truck Push Gains Speed as BillionE Mobility Expands Fleet

Total operating revenue for the quarter stood at Rs. 13,657 million. This was a 3.2% increase compared to the previous quarter. Growth mainly came from the services business, which continues to be the company’s core strength.

Services revenue reached Rs. 10,602 million, showing 4.7% quarter-on-quarter growth. In dollar terms, services revenue was reported at $118.6 million, up 2.6% sequentially. Tata Technologies continues to work closely with automotive clients, including programmes linked to Tata trucks and other vehicle platforms.

EBITDA Affected by One-Time Expenses

Operating EBITDA for Q3 FY26 came in at Rs. 1,929 million, with an EBITDA margin of 14.1%. Adjusted net income stood at Rs. 1,350 million, resulting in a net income margin of 9.9%.

The company clarified that margins were impacted due to one-time costs. These included expenses related to the new labour code and acquisition-related charges. According to management, these were temporary in nature and not part of regular operations.

Employee Strength and Attrition

During the quarter, Tata Technologies said its last-twelve-month attrition stood at 15.8%, while the total employee strength was 12,580 at the end of Q3 FY26. The company is continuing to build talent in core engineering and digital roles, keeping a long-term view on upcoming programmes, particularly those connected with Tata commercial vehicles and evolving mobility requirements.

Management Remains Positive on Growth

CEO and Managing Director Warren Harris said the company delivered growth despite seasonal softness and short-term challenges. He highlighted steady performance across verticals and six strategic deal wins during the quarter. Harris also said the company expects more than 10% sequential revenue growth in Q4 FY26.

New Deals Strengthen Automotive Work

Tata Technologies secured several key deals during the quarter. The company was awarded a full vehicle programme with a global automotive OEM. This strengthens its role in end-to-end product development.

It also entered a new area of embedded and software engineering with a European automotive OEM, replacing existing suppliers. In another project, a European luxury automaker selected Tata Technologies to work on circularity solutions, including emissions analysis and sustainable material selection. Such work is becoming important across vehicle types, including vans like Tata Winger.

Expansion in Education and Skilling

Outside the automotive space, Tata Technologies expanded its presence in education projects. The quarter also saw Tata Technologies picking up work from state governments. In Uttar Pradesh, the company has been roped in to support the upgrade of 121 polytechnic institutes, with focus on basic Industry 4.0 infrastructure. Separately, Tamil Nadu awarded Tata Technologies a project covering 44 polytechnics, where the work will centre around manufacturing labs and digital learning tools.

Looking Ahead

Q3 FY26 was a stable quarter for Tata Technologies. Revenue moved up sequentially, while margins saw temporary pressure due to one-time costs. With strong deal wins and a positive outlook for the next quarter, the company remains focused on long-term growth, including engineering work related to Tata buses and evolving mobility platforms.

Also Read: Ashok Leyland Expands Product Range in Indian CV Market

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Frequently Asked Questions on Commercial Vehicles

Q1. What is the main business of Tata Technologies?

Ans. Tata Technologies is mainly an engineering and digital services company that works with global automotive and industrial clients on product development and software solutions.

Q2. What is EBITDA margin and why does it matter?

Ans. EBITDA margin shows how much profit a company makes from its operations before interest, tax, depreciation, and amortization. It helps assess core business performance.

Q3. Why do companies report sequential growth?

Ans. Sequential growth compares one quarter to the previous quarter. It helps track short-term performance and whether the business is improving or slowing down.

Q4. What does attrition mean in a company?

Ans. Attrition refers to the rate at which employees leave the company over a period. Higher attrition can impact project delivery and cost, while lower attrition shows stability.

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