Leading provider of engineering services, Tata Technologies, revealed that it has signed a major contract to design and build batteries for a major manufacturer of EV batteries worldwide. The company’s financial performance update for the first quarter of its 2025 fiscal year was accompanied by this announcement. Although the identity of the new client has not been revealed, it is known that Tata Technologies previously worked with Agratas, the cell manufacturing company owned by the Tata Group, back in January of this year.
Tata Technologies reported a 0.9% year-over-year increase in sales in Q1 FY2025, bringing its total operating revenue to Rs 1,269 crore. Nonetheless, there was a 2.5 percent drop in revenue from the prior quarter. The services sector saw a 1% decline in revenue, amounting to Rs 985 crore. Operating EBITDA for the company for the quarter was Rs 231 crore, with an EBITDA margin of 18.2%, which was marginally less than the 18.4% reported in the previous quarter. From one quarter to the next, net income rose by 3.1% to Rs 162 crore.
The CEO and Managing Director of Tata Technologies, Warren Harris, spoke on the company’s strategic advancement and the favorable market conditions. He specifically mentioned the conclusion of the development phases for two VinFast EV projects. Harris emphasized that beginning with the current quarter, sequential revenue growth is anticipated to accelerate.
In addition, Tata Technologies recently signed contracts for further strategic engagements, including as a middleware stack development partnership with a top commercial vehicle (CV) OEM and a cabin designs and closures contract with a North American CV manufacturer. To develop business and first-class airplane seats in the aerospace sector, the company has entered into a multi-year deal with a European Tier-1 aerospace company.
Tata Technologies has been chosen by a premium automotive OEM in Europe to provide a cloud-based virtual platform for future SoC/MCU hardware architectures. The company’s future has been greatly enhanced by these five strategic victories in the automotive and aerospace industries, which have improved the net income margin by 70 basis points sequentially to 12.8% for the first quarter of FY25.
The company’s strong operational discipline and robust margins were highlighted by Tata Technologies’ Chief Financial Officer, Savitha Balachandran. She declared that while maximizing expenses and boosting productivity, Tata Technologies is still dedicated to making strategic investments in important growth areas. Balachandran expressed confidence in the company’s ability to grow sustainably and succeed over the long run, noting that effective cash flow management and collection procedures serve as the foundation for these achievements.
