Tata Technologies Q3 Profit Slumps 96% on One-Time Labour Code Charge
India’s engineering R&D firm Tata Technologies reported a 96% plunge in third-quarter profit, mainly due to a one-time charge linked to India’s new labour codes, marking its steepest profit drop since listing in 2023.
Net profit fell to 66.4 million rupees ($731,000) in the October–December quarter from 1.69 billion rupees a year earlier. The company booked a one-off charge of 1.4 billion rupees after the new labour rules raised gratuity and leave-related liabilities.
Despite the hit, CEO Warren Harris said the company expects a sharp rebound, forecasting more than 10% sequential revenue growth in the fourth quarter. CFO Uttam Gujrati added that margin pressure seen in Q3 is now behind the firm.
Overall revenue rose 3.7% to 13.66 billion rupees, with services revenue—about 77% of total—up 4.7%. Peer firms including TCS and HCLTech have also reported similar labour-code-related charges.