Tata Projects to Now Bet on Short-Term, Fast-Track Contracts

Tata Projects, the engineering, procurement, and construction (EPC) arm of Tata Sons, now plans to focus on short-term projects in a bid to return to profitability after reporting a consolidated net loss of  Rs 696.57 crore in the financial year 2024–25.

The company, known for executing iconic infrastructure projects such as the new Parliament building, Jewar Airport in Noida, and Mumbai's Trans Harbour Link, will now prioritise projects that can be completed within 12–24 months, Managing Director and CEO Vinayak Pai said in an interview with Mint.

“The game for Tata Projects would now be short-duration and fast-track projects,” he told the newspaper. The company will focus on shorter-cycle projects, including data centres, industrial units, 4G manufacturing, and power distribution.

“Earlier, most of our contracts lasted over three years, so we needed a similar backlog to manage operations,” Pai said. “Now, with contracts averaging 12–24 months, our three-year order book is healthier and more dynamic.”

This shift to fast-track, short-term projects is expected to boost revenue and margins, ultimately improving the company’s bottom line. “We expect to be in a stronger financial position by FY26,” Pai added. “Right now, our priority is restoring profit growth and generating cash. Once stability returns, we can scale our top line rapidly.”

Tata Projects reported a consolidated net loss of Rs 696.57 crore in FY25, compared to a net profit of Rs 81.97 crore in FY24. Revenue declined 1.63% to Rs 17,470.59 crore during the same period.

While the company remained profitable during the peak of the pandemic in FY21, it slipped into losses over the next two years due to project delays and soaring commodity prices, which led to significant cost overruns on marquee government contracts.

Having completed most of these projects in FY25—leaving just two or three still underway—Tata Projects is now aiming for Rs 10,000–15,000 crore in new orders. This would take its total order book to over Rs 50,000 crore by the end of FY26, according to the report.

Pai noted that the company remains cautious about public sector contracts due to poor project planning and frequent design changes. “We’re currently limiting ourselves to select metro and airport projects,” he said, adding that Tata Projects will continue to be selective with future public contracts.

However, the company is not stepping away from large infrastructure projects entirely. “We’ll continue to take on iconic projects that support nation-building,” Pai said. “If there’s another Parliament House or Atal Setu-type project, we’ll certainly be interested.”