Tata Technologies reported its financial results for the June quarter (Q1 FY26) on Monday after market hours, posting a mixed performance as profits rose year-on-year, but revenues and margins contracted.
The company’s consolidated net profit for the quarter stood at ₹170 crore, up 5.1% year-on-year from ₹162 crore in the same period last year. However, sequentially, net profit declined by 9.8% compared to ₹188 crore in Q4 FY25.
Revenue from operations fell to ₹1,244 crore, down 3.2% quarter-on-quarter and 1.9% year-on-year, as the company saw weakness across its core segments. The services segment posted revenue of ₹963 crore, a decline of 5.9% QoQ and 2.2% YoY, while the technology solutions segment recorded ₹280 crore, down 3.2% QoQ and 1.9% YoY.
In US dollar terms, the company reported revenue of $145.3 million, down 2.1% QoQ and 5.1% YoY; in constant currency, revenue slipped 4.6% QoQ and 5.3% YoY. The services segment contributed $112.5 million, declining 4.7% QoQ and 6.8% YoY.
On the operating front, EBITDA fell sharply to ₹201 crore, marking a drop of 14.3% QoQ and 13.4% YoY. EBITDA margin contracted to 16.1% from 18.2% in the previous quarter, indicating higher costs and lower utilisation.
Despite the subdued start to the year, the management remained optimistic about a stronger second half of FY26. CEO & MD Warren Harris said client confidence improved through the quarter, supporting deal momentum and resulting in six strategic wins. He added that the company expects a sequential recovery from Q2 and a stronger H2, supported by a robust deal pipeline and improved visibility.
Investors will watch the stock on Tuesday as the company aims to recover from the muted Q1 and deliver stronger growth in the coming quarters.
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