Tata Technologies Secures Battery Design and Development Contract from Global EV Battery Manufacturer

Tata Technologies, a major player in engineering services, has won a significant contract to design and develop batteries for a global electric vehicle (EV) battery manufacturer. The company’s Q1 FY2025 performance report announced the news but did not reveal the customer’s name. Earlier this year, in January, Tata Technologies collaborated with Tata Group’s cell-manufacturing venture, Agratas.

Tata Technologies reported a total operating revenue of Rs 1,269 crore in the last quarter, showing a 0.9% increase compared to the same period last year but a 2.5% decrease from the previous quarter. Revenue from its services segment dropped by 1% to Rs 985 crore.

The company’s operating EBITDA was Rs 231 crore in Q1 FY25, with an EBITDA margin of 18.2%, slightly down from 18.4% in the previous quarter. Net income rose by 3.1% quarter-on-quarter to Rs 162 crore.

Warren Harris, the CEO and Managing Director of Tata Technologies said, “Market conditions are favorable as the manufacturing sector invests in alternative propulsion systems, software-defined products, and smart manufacturing. The transition with VinFast is mostly complete, and we expect our services business revenue to grow faster from this quarter onward.”

Tata Technologies has been working on two electric vehicle (EV) projects for VinFast. In their Q3 FY24 results, CEO Warren Harris mentioned that VinFast is shifting its focus from developing new products to building and selling cars. Tata Technologies has almost completed the development of the two EVs and is now transitioning to launch support, which will be mostly finished by Q4 FY2024.

Besides a recent battery design contract, Tata Technologies has also been chosen by a leading commercial vehicle (CV) manufacturer to develop a middleware stack for their software-defined vehicle (SDV) framework. They have secured a project with a North American CV manufacturer to design cabin interiors and closures. In the aerospace sector, they signed a multi-year contract with a European Tier-1 company to develop business and first-class aircraft seats.

Harris stated that the company is confident in its full-year prospects due to a strong order book and positive momentum in key accounts, particularly in automotive, aerospace, and industrial heavy machinery. Additionally, a European luxury automotive manufacturer selected Tata Technologies to develop a cloud-based virtual platform for future hardware architectures.

These strategic wins have strengthened Tata Technologies’ value, leading to a 70 basis point increase in net income margin to 12.8% in Q1 FY25.

CFO Savitha Balachandran highlighted that the company’s margins have remained strong, reflecting robust operating discipline. Tata Technologies is committed to investing in key growth areas, optimizing costs, and improving efficiency. The company prioritizes strong cash flow management and efficient collections processes to ensure sustainable growth and long-term success.