India · Delayed Price · Currency is INR Tata Technologies Earnings Call Transcripts
Fiscal Year 2026
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Q4 FY26 delivered 12% sequential revenue growth and a 16% EBITDA margin, exceeding guidance, with broad-based gains across automotive, aerospace, and technology. Double-digit organic growth and margin expansion are expected in FY27, supported by strong deal wins and improved operational leverage.
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Q3 saw 3.2% sequential revenue growth, strong aerospace and IHM performance, and successful ES-Tec integration. EBITDA margin was 14.1% due to wage hikes and one-time costs, but Q4 is expected to deliver over 10% sequential growth and margin recovery, with double-digit organic growth targeted for FY27.
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Sequential revenue grew 6.4% with strong gains in aerospace, industrial machinery, and technology solutions. Margins improved after adjusting for one-off expenses, and the ES-Tec acquisition boosts European automotive capabilities. Q3 faces temporary headwinds, but Q4 recovery is expected.
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Q1 FY26 saw revenue and margin declines due to delayed deal ramp-ups and macro headwinds, but strong deal closures and a robust order book support expectations for sequential recovery and a stronger second half. Aerospace and technology solutions segments outperformed.
Fiscal Year 2025
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Revenue grew 1% year-over-year, with underlying services growth of 12% excluding a major completed project. EBITDA margin improved to 18.2% in Q4, and the BMW JV scaled rapidly, boosting profits. Management remains optimistic for FY26 as deal momentum is expected to recover once global uncertainties ease.
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Sequential revenue grew 1.7% in constant currency, with strong performance in aerospace and technology solutions, and resilient margins despite wage hikes. Four major deals were signed, the BMW JV launched, and the company remains optimistic about medium-term growth and margin targets.
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Sequential revenue grew 2.2% in Q2 FY25, with strong education and digital engineering performance. Margins remained resilient at 18.2%, and a robust order book supports expectations for stronger H2 growth despite short-term market headwinds.
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Q1 FY25 saw a 2.5% sequential revenue decline due to seasonality and project phasing, but margins remained resilient and net profit rose 3.1%. Management expects sequential growth from Q2, supported by a strong order book, new large deals, and robust demand in digital engineering and smart manufacturing.