The company, which counts Jaguar Land Rover and Tata Motors among its largest clients, reported a 4% rise in revenue to Rs 1,366 crore during the quarter.
The company incurred a statutory impact from labour codes amounting to Rs 139.87 crore. Excluding this exceptional item, profit before tax stood at Rs 137 crore.
On a sequential basis, revenue rose 3% from Rs 1,323 crore in the September quarter.
The Services segment continued to drive growth, with revenue rising 4.7% quarter-on-quarter (QoQ) to Rs 1,060 crore. In dollar terms, Services segment revenue stood at $118.6 million, reflecting a 2.6% sequential increase.
Operating EBITDA for the quarter was Rs 193 crore, translating into an EBITDA margin of 14.1%. The adjusted net income margin, excluding one-time exceptional items related to the new labour code and acquisition-related costs, stood at 9.9% for the quarter.
CFO Uttam Gujrati said the margin headwinds seen in Q3 are behind the company and that it expects to return to, or even exceed, the adjusted margin run-rate of the second quarter.On the people front, trailing twelve-month attrition stood at 15.8%, while total workforce strength was 12,580 employees at the end of December 2025.
Management noted that the margins and profitability metrics reported for Q3 FY26 exclude the impact of the one-time labour code charge and acquisition-related costs, providing a clearer picture of the underlying operating performance.
Commenting on the quarter, Warren Harris, CEO and MD of Tata Technologies, said Q3 reflected the resilience of the business despite seasonal softness and short-term headwinds. He highlighted strong performance across verticals, six strategic deal wins and continued investments in delivery capacity.
Harris added that the company expects a sharp acceleration in the March quarter, with management guiding for sequential revenue growth of over 10% in Q4. He said recent structural changes, including portfolio diversification, reduced client concentration risk and the Es-Tec acquisition, have reshaped Tata Technologies’ growth engine into one that is broader, more balanced and more sustainable over the medium term.
On Friday, Tata Technologies shares closed 0.7% higher at Rs 651.2 on the NSE.