Tata Technologies’ Q2 profit rises 5% as non-automotive business offsets auto slowdown
Tata Technologies (TATE.NS) reported a 5% increase in second-quarter profit on Friday, helped by growth in its non-automotive segments that offset weakness in its core auto-focused business.
The Indian engineering and technology services company, which provides product design, engineering, and manufacturing digitalisation solutions, said net profit rose to 1.66 billion rupees ($19 million) in the three months ending September, up from 1.57 billion rupees a year earlier.
Revenue climbed 2% to 13.23 billion rupees ($150.3 million), driven largely by its smaller technology solutions division, which posted 6.6% growth during the quarter. The company’s services segment, which accounts for 77% of overall revenue, remained flat amid cautious spending from automotive clients.
Tata Technologies, which counts Jaguar Land Rover and Tata Motors among its top customers, has been affected by tariff-driven pressures in the U.S. and Europe that have prompted carmakers to scale back R&D and outsourcing projects, analysts said.
CEO Warren Harris acknowledged that the next quarter could bring “short-term tactical challenges,” but said he expects a strong rebound in Q4 supported by an expanding project pipeline and improving demand trends.
The company’s non-automotive businesses, including aerospace and industrial machinery, continued to show resilience and were key contributors to overall profitability.