Tata Technologies shares dropped over 1.55% to ₹755.05 apiece on June 4, 2025, after private equity firm TPG offloaded a 3.9% stake worth ₹1,068 crore via open market transactions. The sale of 1.58 crore shares led to a decline in TPG’s total holding from 6% to 2.1%. The move comes shortly after Tata Technologies, headquartered in Pune, Maharashtra, India, announced mixed Q4 results for FY25. The company, which provides engineering and digital product development services, reported a 20.12% increase in net profit, while revenues slipped marginally. Kotak Institutional Equities retained its ‘Sell’ rating, citing weak future growth.
Tata Technologies, a Pune-based Indian multinational specializing in engineering and digital product development services, witnessed a decline in its share price on June 4, 2025, after global private equity firm TPG sold a significant portion of its stake in the company.
During the trading session, Tata Technologies shares fell by 1.55%, hitting ₹755.05 apiece on the National Stock Exchange (NSE). The decline followed a report by PTI confirming that TPG’s investment arm, TPG Rise Climate SF, had offloaded over 1.58 crore shares of the company in an open market transaction. The shares were sold at an average price of ₹673.26, bringing the total transaction value to approximately ₹1,068.05 crore (USD 128.2 million).
This offloading has reduced TPG’s holding in Tata Technologies from 6% to just 2.1%, raising concerns among investors and leading to immediate stock market reaction.
Tata Technologies Q4 FY25 Performance
The stake sale came shortly after the release of Tata Technologies’ financial results for the fourth quarter ending March 31, 2025. The company reported a consolidated net profit of ₹188.87 crore, marking a 20.12% increase from ₹157.24 crore in the corresponding period last year.
However, revenue from operations dipped slightly to ₹1,285.65 crore, a 1.18% fall from ₹1,301.05 crore in Q4 FY24. Total expenses also fell marginally by 0.57% to ₹1,088.20 crore.
Tata Technologies’ board proposed a final dividend of ₹8.35 per share, along with a one-time special dividend of ₹3.35, taking the total dividend to ₹11.70 per equity share for FY25.
Analyst Sentiment
Despite the earnings improvement, brokerage firm Kotak Institutional Equities maintained its ‘Sell’ rating on the stock, revising the target price from ₹550 to ₹500. The firm expects subdued services revenue in FY26, citing a soft demand environment and slower growth among major clients. Kotak also reduced earnings projections for FY26–28 by 4–7%.
As Tata Technologies navigates this transitional phase, market watchers will closely monitor further developments, especially in response to foreign investor sentiment and demand recovery across its global client base.
