Tata Technologies (TATATECH) Q4 24/25 earnings summary

Executive summary

• FY25 revenue grew 1% year-over-year in INR to ₹51,685 million, with underlying services growth of 12% excluding the completed VinFast project from FY24.

• Net income for FY25 was ₹6,770 million, with a net margin of 13.1%, and Q4 net income rose 12% quarter-on-quarter to ₹1,889 million.

• Secured 17 large deals, including one over $500 million, and expanded the client base with 44 clients contributing over $1 million annually.

• Achieved highest-ever customer Net Promoter Score, received two industry innovation awards, and maintained margins above 18% for the fourth consecutive year.

• BMW joint venture scaled faster than expected, contributing a net benefit in Q4.

Financial highlights

• Q4 FY25 revenue from operations was ₹12,857 million, down 2.4% sequentially; services revenue grew 1.1% to ₹10,241 million.

• Full-year revenue reached ₹51,685 million, up 1% year-over-year; services segment contributed ₹40,273.6 million.

• EBITDA margin improved 40 bps sequentially to 18.2% in Q4; full-year EBITDA margin was 18.1%.

• Net cash position at quarter-end was $174.7 million, up from $154.1 million in Q3; free cash flow for FY25 exceeded ₹9,000 million.

• Board recommended a final dividend of ₹8.35 per share and a special dividend of ₹3.35 per share.

Outlook and guidance

• No specific revenue or earnings guidance provided; management remains optimistic for medium- and long-term growth, especially in automotive ER&D and digital innovation.

• Anticipates gradual recovery in education business and continued momentum in aerospace and BMW JV.

• Expects deal closures and demand to improve once global tariff and regulatory uncertainties resolve.

• Priorities for FY26 include scaling software and AI capabilities, deepening IP investments, and maintaining operational discipline.