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Tata Technologies Limited
(TATATECH)
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Rating:69Neutral
Price Target:
₹816.00
▲(14.77% Upside)
Action:Reiterated
Date:10/15/26
The score is driven primarily by solid (but slowing) financial performance and a notably upbeat earnings call with reiterated double-digit growth and margin-improvement expectations. This is tempered by weak-to-mixed technical momentum (negative MACD and below key mid-term moving averages) and a demanding valuation (high P/E with modest yield).
Positive Factors
Large engineering program wins
The $138 million full vehicle award demonstrates that Tata Technologies is winning responsibility for complex, end-to-end product development rather than isolated engineering tasks. Multi-year execution and potential variant work can deepen the customer relationship, improve revenue visibility, and support scale in higher-value programs.
Negative Factors
Growth and profitability slowdown
The sharp deceleration after strong 2021–2024 expansion, alongside lower gross, EBIT, and EBITDA margins, indicates that growth has become harder to convert into profit. If sustained, weaker pricing, mix, or cost absorption could constrain earnings compounding and investment capacity over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Large engineering program wins
The $138 million full vehicle award demonstrates that Tata Technologies is winning responsibility for complex, end-to-end product development rather than isolated engineering tasks. Multi-year execution and potential variant work can deepen the customer relationship, improve revenue visibility, and support scale in higher-value programs.
Read all positive factors
Tata Technologies Limited (TATATECH) vs. iShares MSCI India ETF (INDA)
Market Cap
₹286.39B
Dividend Yield1.18%
Average Volume (3M)78.75K
Price to Earnings (P/E)49.9
Beta (1Y)1.15
Revenue Growth21.87%
EPS Growth-18.85%
CountryIN
Employees11,529
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)13.72
Shares Outstanding406,051,820
10 Day Avg. Volume120,379
30 Day Avg. Volume78,746
Financial Highlights & Ratios
PEG Ratio-1.96
Price to Book (P/B)5.27
Price to Sales (P/S)3.75
P/FCF Ratio26.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹660.00Price Target Upside-7.17% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)19.06
Revenue Forecast (FY)₹69.13B
Tata Technologies Limited Business Overview & Revenue Model
Company Description
Tata Technologies Limited is a global firm providing product engineering and digital services across North America, Europe, and the Asia Pacific, structured into Service and Technology Solutions segments. The company's diverse offerings include IT...
How the Company Makes Money
Tata Technologies makes money primarily by providing engineering and digital services to enterprise customers (especially automotive and aerospace OEMs and suppliers) under contracted commercial arrangements. Key revenue streams include: (1) Engin...
Tata Technologies Limited Earnings Call Summary
Earnings Call Date:Oct 14, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Feb 14, 2027
Earnings Call Sentiment Positive
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.Positive Updates
Strong Revenue Growth
Q2 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.
Negative Updates
ES-Tec Demand Softness
Demand at ES-Tec remains subdued, particularly from its largest customer in Germany. Management anticipates some additional softness in Q3, although it expects conditions to stabilize in 2027.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong Revenue Growth
Q2 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.
Read all positive updates
Company Guidance
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.Tata Technologies Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 59.26B | 55.06B | 51.64B | 51.13B | 44.13B | 35.28B |
| Gross Profit | 13.53B | 12.31B | 15.16B | 14.59B | 13.13B | 9.93B |
| EBITDA | 9.37B | 9.44B | 10.62B | 10.57B | 9.09B | 6.94B |
| Net Income | 5.57B | 5.47B | 6.77B | 6.79B | 6.24B | 4.37B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 89.53B | 66.64B | 55.78B | 52.17B | 42.30B |
| Cash, Cash Equivalents and Short-Term Investments | 15.77B | 15.13B | 15.61B | 9.63B | 10.29B | 13.97B |
| Total Debt | 0.00 | 9.38B | 2.37B | 2.57B | 2.55B | 2.61B |
| Total Liabilities | -39.23B | 50.30B | 30.85B | 23.57B | 22.28B | 19.50B |
| Stockholders Equity | 39.23B | 39.23B | 35.79B | 32.21B | 29.89B | 22.80B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 7.69B | 6.68B | 2.03B | 3.36B | -1.02B |
| Operating Cash Flow | 0.00 | 8.02B | 6.99B | 2.94B | 4.01B | -387.10M |
| Investing Cash Flow | 0.00 | -8.99B | -885.30M | 3.94B | -4.87B | 742.10M |
| Financing Cash Flow | 0.00 | 169.60M | -4.86B | -5.57B | -3.47B | -444.11M |
Tata Technologies Limited Technical Analysis
Negative
711.00
Price Trends
767.74
Negative
753.43
Negative
675.26
Positive
Market Momentum
-11.04
Negative
37.49
Neutral
15.98
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TATATECH, the sentiment is Negative. The current price of 711 is below the 20-day moving average (MA) of 711.41, below the 50-day MA of 767.74, and above the 200-day MA of 675.26, indicating a neutral trend. The MACD of -11.04 indicates Negative momentum. The RSI at 37.49 is Neutral, neither overbought nor oversold. The STOCH value of 15.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TATATECH.
Tata Technologies Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ₹382.95B | 27.50 | ― | 1.45% | 2.45% | 20.32% | |
76 Outperform | ₹897.08B | 50.93 | ― | 0.31% | 27.10% | 7.08% | |
73 Outperform | ₹1.74T | 29.42 | ― | 2.78% | 13.60% | 23.11% | |
70 Outperform | ₹10.08B | 20.27 | ― | 1.83% | 13.11% | 18.12% | |
69 Neutral | ₹286.39B | 49.94 | ― | 1.18% | 21.87% | -18.85% | |
64 Neutral | ₹146.94B | 25.44 | ― | 1.39% | 9.55% | -27.98% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:TATATECH
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1.63%
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Tata Technologies Limited Corporate Events
Tata Technologies Shuts Trading Window Ahead of September Earnings
Sep 22, 2026
Tata Technologies has announced the closure of its trading window for designated persons in compliance with SEBI’s Prohibition of Insider Trading Regulations and its internal code of conduct. The move underscores the company’s commitme...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.