Tata Technologies Falls 6% as TPG Sells 3.95% Stake via Block Deal

On Tuesday, Tata Technologies shares fell by 6 percent on the NSE after reports of TPG Rise Climate offloading a 3.95 percent stake in the company through a block deal.

On April 29, 2025, a large block deal occurred where TPG Rise Climate offloaded approximately 1.6 crore shares, which represents about 3.95 percent of Tata Technologies, for an average price of around Rs. 683, valued at approximately Rs. 1,094 crore. This transaction was conducted at a discount of about 3.25 percent to the last traded price, as per news reports. The deal could be valued at around Rs. 1,109 crore. However, the bulk deal confirmation is pending.

TPG Rise Climate’s stake in Tata Technologies stood at 6.01 percent as of the March 2025 quarter. In August 2024, TPG sold its stake worth Rs. 1,230 crore at an average price of Rs. 1,014.16 per share.

The market reacted to this block deal, taking Tata Technology shares down by 6 percent, touching a day’s low of Rs. 662.25 per share. As per sources, the deal was managed by BofA Securities, which is acting as the sole banker. The stock price has corrected by 41 percent from its 52-week high price of Rs. 1,136 per share on 20th September 2024, as per NSE.

This development has occurred after the company released its Q4FY25 results, with Tata Technologies reporting a consolidated profit after tax (PAT) of Rs. 188.87 crore, marking a 20.12 percent increase from Rs. 157.24 crore in the same quarter of the previous financial year. This growth in profitability was achieved despite a slight 1.18 percent decline in revenue from operations, which stood at Rs. 1,285.65 crore compared to Rs. 1,301.05 crore in Q4FY24.

The company managed to reduce its total expenses marginally by 0.57 percent year-on-year to Rs. 1,088.20 crore, contributing to the improved bottom line. The operating EBITDA margin also improved to 18.2 percent in Q4FY25 from 17.8 percent in the previous quarter, reflecting better operational efficiency. They have announced a final dividend of Rs. 8.35 per equity share and a special one-time dividend of Rs. 3.35 per share for FY25, aggregating to Rs. 11.70 per share, subject to shareholder approval.

For FY25, Tata Technologies posted total operating revenue of Rs. 5,168.5 crore, a 1 percent growth from Rs. 5,117.2 crore in FY24. The operating EBITDA for FY25 was Rs. 934.1 crore, with a margin of 18.1 percent. The company closed 17 large deals during the year, including a marquee contract exceeding $500 million, two deals above $50 million, and one exceeding $20 million. This deal pipeline and expanding customer base-now with 44 customers, contribute to over a million dollars. The PAT for FY25 was Rs. 677 crore, slightly down from Rs. 679.37 crore in FY24, reflecting stable profitability despite industry headwinds.