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 for 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. Despite margin pressure from wage hikes and a client incident, guidance is for over 10% sequential growth in Q4 and double-digit organic growth in FY27, with aerospace as a key driver.
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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, led by strong technology solutions and aerospace growth, while EBITDA margin held at 17.8% despite wage hikes. Four major deals were signed, and the BMW partnership began operations, supporting a positive outlook as policy clarity is expected to drive future demand.
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Sequential revenue grew 2.2% in Q2 FY25, with resilient margins and strong order book. Education and digital engineering segments led growth, while short-term headwinds persist in automotive due to global uncertainties. H2 is expected to outperform H1.
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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.