Tata Technologies reported an 8.1% sequential increase in net profit, reaching Rs 204 crore for the March quarter. The company’s EBITDA margin for the quarter was 16%, reflecting an improvement of 200 basis points. Notably, the Q4 FY26 margins exclude one-time exceptional items, specifically the reversal of Rs 56 crore previously accounted for due to the new labour code.
The company’s revenue rose by 15.1% quarter-on-quarter to Rs 1,572.20 crore, a growth driven by broad-based contributions from both automotive and non-automotive sectors, as well as from anchor and non-anchor clients. In particular, the services segment’s revenue increased by 15% quarter-on-quarter to Rs 1,219.60 crore, translating to $132.6 million in dollar terms, a 11.9% increase quarter-on-quarter in constant currency.
Diversified Growth
Warren Harris, CEO and Managing Director, noted that the momentum built in Q3 continued into Q4, resulting in a 12% revenue growth in constant currency and margin expansion. He said that this marked a clear turning point for the business, with growth being widely distributed rather than concentrated in any single customer or program. In the automotive segment, customers have been investing in both internal combustion engine (ICE) and electric vehicles, and as the company is technology-agnostic, they were able to work across all automotive segments.
The order book visibility has improved, with the company securing two large deals in the March quarter and having two more in the pipeline. Furthermore, they achieved a breakthrough in Japan, partnering with a major OEM for a full vehicle program. Full vehicle programs, which were absent in the first half of FY26, made a comeback in Q4 FY26. Additionally, the company now has a presence in the German market through the acquisition of ES-Tec Group.
Strategic Order Book
This progress has boosted the leadership’s confidence for FY27, with expectations of double-digit organic growth and margin guidance of 18%. The company has projected double-digit organic revenue growth along with margin improvement, expecting greater contributions from its joint venture with BMW. They are also strengthening their relationship with Airbus, their flagship account in the aerospace sector. They had started working with more engine manufacturers in North America and India, particularly with Air India.
According to Harris, the North Star for Tata Technologies was to reach revenues of $1 billion, which they hope to achieve within the next two to three years. Harris mentioned that they expect to reach this milestone through double-digit growth this year and next, along with some inorganic growth.
He did caution against a potential rise in aluminium and plastics prices for their automotive clients due to the Middle East crisis and a possible slowdown in discretionary spending. However, he assured that this would not affect any capital expenditures or commitments made to ongoing programs.
The Tata Tech board has recommended a final dividend of Rs 8.35 per equity share, along with a special dividend of Rs 3.35 per equity share.