Q2 Performance Update: Tata Technologies Net Profit Up 5% with Services Growth of 5.1%

Global product engineering and digital services firm Tata Technologies Ltd reported a 5.1% year-on-year increase in consolidated net profit for the second quarter, reaching ₹166 crore compared with ₹157 crore in the same period last year. The company’s revenue for Q2 FY26 rose 2.1% to ₹1,323 crore from ₹1,296 crore in the year-ago quarter. 

Despite the revenue growth, operating performance showed mixed trends, with EBITDA declining to ₹208 crore from ₹235.5 crore and EBITDA margin contracting to 15.7% from 18.1% in Q2 FY25.

Services Segment Shows Positive Momentum

The Services segment of Tata Technologies recorded revenue of ₹1,012.8 crore, reflecting a 5.1% quarter-on-quarter increase. In US dollar terms, this amounted to $115.6 million, up 2.7% QoQ. 

Operating EBITDA for the segment was ₹207.8 crore, increasing 3.8% sequentially, while adjusted EBITDA margin expanded by 30 basis points to 16.4%. Net margin for the quarter stood at 12.5%, reflecting steady operational discipline amid broader macroeconomic challenges.

Workforce and Attrition

The company maintained a total workforce of 12,402 employees as of September 30, 2025, with a last twelve months (LTM) attrition rate of 15.1%. Leadership highlighted continued investments in talent, partnerships, and innovation as key drivers of sustainable growth for the firm.

Leadership Commentary

Warren Harris, Chief Executive Officer and Managing Director, said, "Q2 FY26 was a quarter of strong progress and positive momentum. We achieved a return to growth, strengthened our strategic position in Europe, advanced our innovation agenda, and continued to invest in talent and partnerships that fuel long-term value creation." CFO Savitha Balachandran added that the company maintained financial resilience and operational discipline, keeping a healthy balance sheet while navigating macroeconomic challenges.

Market Reaction

As of October 17, 2025, Tata Technologies Share Price ended at ₹685.55, down 0.98% on the BSE. Tata Technologies market capitalisation stands at ₹27,804 crore. The stock traded between a high of ₹1,075 and a low of ₹595 over the period. 

The stock offers a return on capital employed (ROCE) of 25.8% and a return on equity (ROE) of 19.9%, demonstrating steady operational performance. The face value of the share is ₹2.00.

Read More:Tata Technologies to Acquire ES-Tec Group for Up to €75 Million

Conclusion

Tata Technologies demonstrated steady revenue and net profit growth in Q2 FY26, supported by a strong Services segment and operational resilience. The company’s focus on talent, strategic investments, and market expansion provides a solid foundation for the second half of the fiscal year.

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