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Tata Technologies Limited (TATATECH)

Information Technology · IT - Services · NSE · Updated 16 June 2026

₹771.9 ↑ 2.93% (1Y)

🎯 Key Takeaways

Tata Technologies is transitioning from a mature IT services player to a high-growth engineering and R&D partner for global automotive and aerospace OEMs, with strategic investments in full-vehicle programs, aerospace, and AI-driven capabilities. Management is targeting double-digit organic growth and EBITDA margin expansion to 18% by FY27, signaling a deliberate shift toward higher-margin, long-cycle contracts.
Revenue grew 1.6% QoQ to ₹1,317 in Q3FY25.
⚠️ Client concentration risk remains elevated, particularly with exposure to global automotive OEMs, which could impact order visibility and revenue stab

Market Cap

₹25,193

P/E Ratio

39.0

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Tata Technologies is transitioning from a mature IT services player to a high-growth engineering and R&D partner for global automotive and aerospace OEMs, with strategic investments in full-vehicle programs, aerospace, and AI-driven capabilities. Management is targeting double-digit organic growth and EBITDA margin expansion to 18% by FY27, signaling a deliberate shift toward higher-margin, long-cycle contracts. Despite near-term margin pressure from integration costs and exceptional items, the company is leveraging its expanded global footprint and new client wins to reposition for sustained profitability.

📰 What's Happening

In Q4 FY26, Tata Technologies reported revenue of INR 408 crores, up 15.1% YoY, driven by 12% services growth and 13.6% automotive revenue increase, with EBITDA margin expanding to 16% from 14% sequentially. Management highlighted progress on multi-year full-vehicle programs with global OEMs, including a new Japanese customer and stabilized BMW JV performance. The company also secured a major Japanese OEM Full Vehicle Program win and completed the ES-Tec acquisition to accelerate aerospace expansion. Board approved a total dividend of INR 11.70 per share (including a special dividend of INR 3.35) pending AGM approval on June 26, 2026.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	1,289	1,301	1,269	1,296	1,317
Operating Profit	267	264	254	252	262
OPM %	18.4%	18.4%	18.2%	18.2%	17.8%
Net Profit	170	157	162	157	169
EPS	₹4.20	₹3.88	₹3.99	₹3.88	₹4.16

Revenue has shown consistent sequential growth over the past eight quarters, rising from INR 1,269 crores in Q1FY25 to INR 1,317 crores in Q3FY25, with operating margins holding steady around 18% before a recent expansion to 16% in Q4 FY26 on a larger base. While EBITDA margin dipped slightly in the annual report due to integration-related costs, the latest quarterly results show improved profitability with EBITDA growing 30.7% YoY to INR 252 crores. Management attributes this to services growth and full-vehicle program wins, supporting expectations of margin expansion to 18% by FY27.

🔮 Management Outlook & What's Next

Management expects double-digit organic revenue growth in constant currency for FY27 and aims to exceed 18% EBITDA margin by the end of the fiscal year. They cited progress on multi-year full-vehicle programs with global OEMs, including a new Japanese customer, and stable performance in existing partnerships like the BMW JV. Additionally, the company is targeting two additional full-vehicle program closures in the next 8–12 weeks, which could further validate its engineering services model and drive sustained top-line momentum.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — IT - Services

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
L&T Technology Services Limited	37,049	28.5	—	—	—
Inventurus Knowledge Solutions Limited	27,371	37.5	—	—	—
Tata Technologies Limited	25,193	39.0	—	—	—
Netweb Technologies India Limited	21,868	106.3	—	—	—
Affle 3i Limited	20,797	45.6	15.4%	12.4%	0.00
SAGILITY LIMITED	19,662	21.3	—	—	—
Black Box Limited	15,597	79.7	—	—	—
Cyient Limited	9,676	15.1	—	—	—
Amagi Media Labs Limited	8,751	—	—	—	—
Datamatics Global Services Limited	4,385	20.6	—	—	—

🔗 Peer Stock Analyses

LTTS IKS NETWEB AFFLE SAGILITY

⚠️ Risk Factors

1. Client concentration risk remains elevated, particularly with exposure to global automotive OEMs, which could impact order visibility and revenue stability. 2. Integration risks from the ES-Tec acquisition and expansion into aerospace and AI could strain margins if not managed efficiently. 3. Talent attrition and the need to upskill 11,000+ employees in AI and embedded software pose execution challenges. 4. Geopolitical uncertainties and currency fluctuations may affect profitability in international markets, especially in Europe and Japan.

📋 Recent Filings

🧠 Analyst's Read

Tata Technologies is executing a strategic pivot toward high-value engineering services for global OEMs, supported by strong order wins and margin improvement in the latest quarter. Investors should monitor the pace of full-vehicle program closures and the realization of synergies from the ES-Tec acquisition, as these will be critical to sustaining growth and margin expansion beyond FY27.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-06-16.