Analyst Concall
Tata Tech hopeful of sales bouncing back in Oct-Mar
This story was originally published at 20:39 IST on 14 July 2025
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--Tata Tech: Partnered Asian airline for fully integrated docking system
--CONTEXT: Comments by Tata Tech management in post-earnings conference call
--Tata Tech: Partnered with European automotive OEM to deliver tech services
--Tata Tech: Closed 6 significant deals in Apr-Jun
--Tata Tech: Expect business momentum to pick up from October
--Tata Tech: US tariffs have led to delay in client projects
--Tata Tech: Expect macroeconomic challenges to be short-term
--Tata Tech: Sept quarter to decide if FY26 revenue target can be achieved
--Tata Tech: US withdrawal of EV push impacted clients' plans
By Avishek Rakshit & Ashutosh Pati
KOLKATA – After a subdued financial performance in the June quarter, Tata Technologies Ltd. is hopeful of a bounce back in its sales towards the later part of the current financial year beginning October onwards. This period aligns with the time when US-based companies finalise their budgets and sign new business deals.
Unlike India, which follows the Apr-Mar cycle as its financial year, US companies mostly follow Jan-Dec as their financial year and it is during Oct-Dec that US companies finalise their business strategy for the incoming financial year, decide on investments, and capital expenditure plans. Tata Technologies, which is a product engineering and digital services company, relies entirely on companies from the US, Europe, Asia, and others for its business.
"Looking ahead, we are optimistic about a sequential recovery in Q2 (Jul-Sept) and a stronger second half in FY26," Warren Harris, the company's chief executive officer and managing director told investors Monday after declaring the company's financial results for Apr-Jun. "Our deal pipeline today is stronger than it was at the same time last year, and the early build-up of our order book gives us increased visibility and confidence in improved conversion rates."
Tata Technologies reported its highest-ever sequential fall in revenue since November 2023, when it was listed in the stock market, in the June quarter at INR 12.4 billion. Incidentally, this was the lowest ever quarterly revenue reported by the company since its shares debuted on the Indian bourses.
Harris partially blamed the tariffs imposed by the Trump administration and its defocus on electric vehicles in the US for Tata Technologies' dismal financial performance. He said the investment and growth plans of the US companies was hit after tariffs were announced which impacted the business of Tata Technologies. Also, the withdrawal of support for electric vehicle push by US Congress upset the plans of the US automotive companies which had a cascading effect on Tata Technologies.
"On April the 2nd, the announcement was made about tariffs. And, I think the uncertainty that generated, prompted a number of our customers and a number of the projects that they were looking to launch to be paused and delayed," Harris said.
However, the top official said that he was hopeful that the uncertainty arising from revision of the tariffs by the US and macroeconomic challenges will be short term and will get addressed soon. The September quarter is also crucial as this will decide whether the company will be able to achieve its targeted revenue for 2025-26 (Apr-Mar), Harris said.
Tata Technologies closed six important deals in Apr-Jun. Of this, one deal comprised a European luxury automotive original equipment manufacturer where Tata Technologies will deliver technical services across key domains, including body engineering, digital product development, powertrain systems, and sustainability. A second important deal involves a leading Asian Airline, which has partnered with Tata Technologies to deliver a fully integrated aircraft docking system—from concept and structural design to simulation, manufacturing support, and on-site installation. A third deal comprise a North American global automotive supplier, for whom Tata Technologies will deliver critical engineering support across multiple units.
Shares of Tata Technologies closed 1.13% higher at INR 716.80 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Subhojit Sarkar
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