The Tata Technologies share rallied 11.6% to an intra-day high of Rs 659.80 on the NSE after it reported steady quarterly earnings for the fourth quarter of FY26.
Tata Tech Q4 performance
The company reported 8.1% year-on-year (YoY) jump in Q4 net profit at Rs 204.17 crore, vs Rs 188.87 crore in Q4FY25.
Its revenue from operations advanced 22.3% YoY to Rs 1,572.22 crore in Q4 FY26, compared to Rs 1,285.65 crore in Q4 FY25. Sequentially, revenue rose 15.1% from Rs 1,365.73 crore.
On an operating front, the company reported EBITDA of Rs 252.1 crore, rising 8% YoY from Rs 233.4 crore and 30.7% higher QoQ compared to Rs 192.9 crore in Q3FY26.
On a category-wise basis, the company’s service division revenue increased 19.1% YoY and 15% quarter-on-quarter (QoQ) to Rs 1,219.6 crore in Q4 FY26. On the other hand, revenue from the technology solutions segment came in at Rs 352.6 crore, surging 35% YoY and 15.4% QoQ.
Also, the board has announced to pay a final dividend of Rs 8.35 per equity share. Additionally, it proposed a one-time special dividend of Rs 3.35, taking the total payout to Rs 11.70 a share for FY26.
Motilal Oswal on Tata Technologies
Despite a good set of numbers, Motilal Oswal Financial Services maintained its ‘Sell’ rating on Tata Technologies. The target price retained at Rs 500 implies a downside of 15% from the current market price, as the brokerage finds 29x one-year forward P/E is a premium relative to the current growth trajectory and execution risks.
The brokerage said that the company’s revenue growth is expected to be 10% USD CAGR over FY26-28. “We keep our estimates largely unchanged. Margins are expected to improve gradually in the first half of FY27, with EBITDA margin guided to exit FY27 at >18%,” it said.
However, near-term margins are likely to remain range-bound (16-17%) due to ramp-up costs, pyramid build, and mix, with meaningful expansion back-ended.
JM Financial on Tata Technologies
Similar to Motilal Oswal, JM Financial also maintained its ‘Reduce’ rating on TataTech. However, it raised the target price to Rs 570 from Rs 560, implying a downside of 3.6% from the current market price.
Double-digit organic constant currency revenue growth in FY27 across both anchor and non-anchor clients; EBITDA margin exit of 18%+ by FY27 end. Also, ES-Tec integration is on track with cross-sell into VW, showing early progress. Lastly, four large deals closed in Q4.
“Cross-sell into VW is key and margin guidance to be monitored, in our view. We revise our EPS estimates by 2-3% over FY27-28E, incorporating 4Q results. Valuations at 30x FY27 consensus EPS prices are all in the positives, in our view,” said JM Financial.
Tata Tech share price performance
The share price of Tata Tech has risen 11% in the last five trading sessions. The stock has given a return of 17% in the past one month. However, the stock has fallen by over 5% in the last six months. Tata Tech’s share price has dropped 4.3% over the previous 12 months.