fMumbai, India — Tata Technologies reported a 5 % year-on-year increase in its consolidated net profit for the second quarter ended September 2025, while cautioning that demand ahead remains subdued.
Key Financial Highlights
- Net profit rose to ₹1.66 billion (approximately USD 18–20 million) from ₹1.57 billion a year ago.
- Revenue increased by about 2 % to ₹13.23 billion in the quarter.
- The company’s main services segment (which contributes about 77 % of its revenue) held flat, while its technology solutions business grew approximately 6.6 %.
Business Drivers & Outlook
- The firm benefitted from stronger performance in its non-automotive business, including aerospace and industrial digital engineering, which helped offset weakness in its core automotive outsourcing business.
- However, Tata Technologies warned of soft near-term demand, especially from automotive clients in the U.S. and Europe, who are cutting back on R&D spending and engineering outsourcing amid macroeconomic and trade-tariff pressures.
- CEO Warren Harris said: “While we may see some short-term, tactical challenges in Q3, we remain confident in a solid rebound in Q4, supported by a robust pipeline, improving demand trends, and continued operational excellence.”
Strategic Implications
The results reflect a cautious optimism: while growth was modest, diversified momentum outside the core automotive segment is a positive sign. The warning on demand signals that growth may remain muted unless client investment picks up or the company accelerates its non-auto verticals.
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