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Tata Tech Profit Plummets 96% on New Labor Code Impact
16 Jan
Summary
- Tata Technologies reported a 96% YoY profit drop to ₹6.64 crore in Q3FY26.
- Statutory impact from new labor codes amounted to ₹139.87 crore.
- Consolidated revenue increased by 3.7% to ₹1,365.73 crore in the quarter.
Tata Technologies announced a substantial 96% year-on-year decline in its consolidated profit for the third quarter of fiscal year 2026, with earnings at ₹6.64 crore. This steep fall is largely attributable to a significant statutory impact of ₹139.87 crore during the quarter, directly resulting from new labor codes that took effect. In contrast to the profit decrease, Tata Technologies reported a 3.7% year-on-year increase in its consolidated revenue from operations. The company's revenue for the December quarter stood at ₹1,365.73 crore, up from ₹1,317.38 crore in the same period last year. Operating EBITDA saw a decrease of 17.6% year-on-year and 7.2% quarter-on-quarter, settling at ₹192.9 crore. Consequently, the operating EBITDA margin also contracted to 14.1% from 17.8% in the prior year and 15.7% in the preceding quarter.
