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Tata Technologies Limited (TATATECH) Q2 2027 Earnings Report
IN:TATATECH Q2 2027 EPS Results
- Actual EPS
- INR 4.20
- Consensus EPS
- INR 4.85
- Beat/Miss
- Missed by -INR 0.65
- One Year Ago EPS
- INR 4.10
IN:TATATECH Q2 2027 Revenue Results
- Actual Revenue
- INR 16.99B
- Expected Revenue
- INR 17.06B
- Beat/Miss
- Missed by -INR 73.96M
- YoY Revenue Growth
- +28.37%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 10/14/2026
- Time
- Before Open
- Conference Call
- Wednesday, October 14, 2026
Tata Technologies Limited's next earnings date is estimated for February 14, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2027 Earnings Call Summary
The call was strongly optimistic, supported by 22.2% year-on-year constant-currency revenue growth, resilient 16.1% operating EBITDA margins, five large deal wins including a $138 million full vehicle program, improving attrition, strong BMW TechWorks contribution, and reiterated strong double-digit FY 2027 growth expectations. The main challenges were subdued ES-Tec and Germany demand, education-related execution pressure, a technology solutions sequential decline, and seasonal Q3 considerations, but management characterized several of these issues as temporary or timing-related and maintained confidence in second-half margin improvement and long-term growth.
Management remains confident in maintaining strong double-digit growth for FY 2027 and reiterates its double-digit consolidated revenue growth outlook for the full year, expects product business to recover in Q3, while the education segment is likely to face near-term pressure and ES-Tec may see some additional softness in Q3 before conditions stabilize in 2027. Management expects sequential margin improvement through disciplined execution, margins expanding in Q3 despite Q3 traditionally being a soft quarter, to finish the year very strongly and sustain margin improvement in the second half; 18% and 20% remain the company’s North Star. Management also believes it can sustain strong double-digit growth for several years to come, although 20%+ growth as the company scales will become an increasing challenge, and does not expect humanoids and physical AI to represent an important part of its mix, at least in the next 12-18 months.
- Strong Revenue GrowthQ2 revenues from operations increased 22.2% year-on-year in constant currency to $178 million. Management reiterated confidence in delivering strong double-digit consolidated growth for FY 2027.
- Services Business MomentumServices revenue grew 4.3% sequentially and 26.2% year-on-year in constant currency to $142 million, contributing approximately 80% of total revenue. Automotive grew 7.6% quarter-over-quarter excluding ES-Tec, while non-automotive grew 7.5% sequentially in U.S. dollar terms.
- Resilient Operating MarginsOperating EBITDA margin remained at 16.1% despite annual salary increments creating more than a 100 basis point headwind. Management said margins improved by 10 basis points in Q2 and expects sequential margin improvement in the second half.
- EBITDA and EBIT ExpansionEBITDA increased 2.2% sequentially and 31.5% year-on-year to INR 273 crores. Operating profit or EBIT increased 25.3% year-on-year to INR 239 crores.
- Large Deal Wins and Program Ramp-UpThe company secured five large deals during Q2, including a landmark $138 million full vehicle engineering program with a leading European luxury automotive OEM spanning two vehicle programs. It also won an engagement with a leading North American commercial vehicle manufacturer for end-to-end development of a new vehicle platform and associated digital SDV infrastructure. Several large engineering engagements are ramping and are expected to contribute more meaningfully in the second half.
- Strategic Full Vehicle PositioningThe $138 million program represents turnkey responsibility for the entire product realization process from concept through launch, runs for about two and a half years, and may have variant opportunities beyond the initial scope. Management described the award as validation of Tata Technologies' ability to own increasingly complex product development outcomes.
- Growing Pipeline and Order VisibilityManagement said the pipeline continues to scale, its content is providing increasing confidence in the company's full vehicle proposition, and additional large deal wins may be shared before the end of the calendar year. The order book complements the pipeline and supports confidence in sustainable growth.
- BMW TechWorks ContributionThe share of profit from BMW TechWorks increased 20% sequentially and 115% year-on-year to INR 11.4 crores. Including deferred income of INR 8.3 crores, the venture contributed INR 19.7 crores during the quarter.
- Aerospace Growth OpportunityAerospace demand remains strong, with opportunities across manufacturing engineering, propulsion, MRO, digital transformation, AI, and automation. Management said most aerospace programs are eight to ten years in duration, providing a level of predictability, and noted that commercial aircraft in productive use could increase from approximately 25,000-26,000 to more than 40,000. Tata Technologies also expects its Airbus relationship to support participation in Airbus's planned next-generation single-aisle aircraft program.
- AI-Native Capability Build-OutNearly 1,000 Tata Technologies associates are developing and deploying AI agents across engineering and business processes. Management said the company is seeing improvements in productivity, quality, development speed, and scalability while transitioning from AI-assisted to AI-native ways of working.
- Technology Solutions and Consolidated Revenue GrowthTechnology solutions revenue grew 9.2% year-on-year in constant currency. Total revenue from operations increased 2.1% sequentially to INR 1,699 crores, and would have grown 2.8% sequentially excluding the revised revenue recognition policy in the product business.
- Underlying Profit GrowthProfit before tax increased 7% year-on-year to INR 242 crores, while underlying PBT excluding non-cash foreign exchange movements grew 16.4% year-on-year. Net income was INR 171 crores versus INR 166 crores a year earlier, and profit after tax excluding the cited non-cash items would have increased 13% year-on-year.
- Workforce Expansion and Improved RetentionHeadcount increased by 316 employees, or 2.5% sequentially, to 12,895 associates to support large program ramp-ups. Trailing-12-month voluntary attrition improved by 70 basis points sequentially to 15.6%.
- Employee Training and Capability DevelopmentThe company delivered more than 27,000 learning hours, trained over 5,000 associates across technical and professional skills, and expanded AI-readiness programs to more than 1,000 employees. Strategic hiring and leadership development continued across embedded software, software-defined vehicles, AI, cybersecurity, digital engineering, and advanced manufacturing.
- Healthy Liquidity After Shareholder DistributionThe company ended Q2 with approximately INR 330 crores of net cash after paying nearly INR 475 crores in dividends during the quarter. Management said the balance sheet remains robust and provides flexibility for growth investments, strategic opportunities, and disciplined capital allocation.
- Group Ecosystem and Semiconductor SynergiesManagement said Tata Technologies is already supporting Tata Electronics and can leverage Tata Group capabilities, including Tata Electronics and TACO, where a consortium proposition makes sense across the automotive value chain. These capabilities are expected to increasingly contribute to the company's value proposition.
- Positive Anchor-Customer and North American OutlookManagement expressed strong confidence in relationships with Tata Motors, Tata Motors Commercial Vehicles, and JLR, citing potential opportunities from new vehicle nameplates, the Iveco acquisition, and JLR's expansion toward North America. It also expressed cautious optimism about North American OEM investment in alternative propulsion, software-defined vehicles, and global expansion.
- Long-Term Margin AmbitionManagement reaffirmed continued margin improvement as a priority and described 18% and 20% as the company's North Star margin levels.
IN:TATATECH Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 14, 2027 | 2027 (Q3) | 4.80- | 0.2 | ― | ― |
| Oct 14, 2026 | 2027 (Q2) | 4.854.20 | 4.1 | 2.44% (+0.10) | |
| Jul 17, 2026 | 2027 (Q1) | 4.654.50 | 4.2 | 7.14% (+0.30) | |
| May 04, 2026 | 2026 (Q4) | 4.294.00 | 4.7 | -14.89% (-0.70) | |
| Jan 16, 2026 | 2026 (Q3) | 3.940.20 | 4.2 | -95.24% (-4.00) | |
| Oct 17, 2025 | 2026 (Q2) | 4.134.10 | 3.9 | 5.13% (+0.20) | |
| Jul 14, 2025 | 2026 (Q1) | 3.794.20 | 4 | 5.00% (+0.20) | |
| Apr 25, 2025 | 2025 (Q4) | 4.274.70 | 3.89 | 20.82% (+0.81) | |
| Jan 21, 2025 | 2025 (Q3) | 4.004.20 | 4.2 | 0.00% (+0.00) | |
| Oct 28, 2024 | 2025 (Q2) | 4.223.90 | 3.98 | -1.89% (-0.07) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
