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Informist, Friday, Oct. 17, 2025

By Arya S. Biju and Narayana Krishna

MUMBAI/HYDERABAD – Tata Technologies Ltd. Friday said it expects a double-digit growth in its revenue for 2026–27 (Apr-Mar), in line with the guidance given for the current financial year, Chief Executive Officer and Managing Director of the company Warren Harris said in a post-earnings call with analysts. The company also reiterated its guidance of double-digit revenue growth for FY26. 

"...our aspirations of double-digit growth will always be there. And I think at this point in time...while our objective and target will be to ensure that the order book and the momentum that we take into the next fiscal year will provide a platform for double-digit growth in FY27," Harris said. However, the company's revenue in the first half of the current financial year remained largely flat at INR 25.68 billion compared with INR 25.65 billion in the corresponding period a year ago. 

"Looking ahead to the second half of FY26, we remain cautiously optimistic. While Q2 marks a determined growth, we expect some moderation in momentum during Q3," Harris said. Though the company expects to see some short-term "tactical" challenges in the December quarter, it remains confident of a rebound in the March quarter supported by a robust pipeline, improving demand, and continued operational excellence. The rebound expected in the March quarter will be largely from organic growth, Harris said. "Q3 is seasonally soft given the festivals and the holidays in different parts of the world...our commentary (on a soft Q3) is related to seasonal issues and specifically one or two customer situations that we are looking to quantify at this point in time," he added.

For the September quarter, the company's consolidated net profit fell nearly 3% on quarter to INR 1.66 billion, as its expenses grew at a faster pace over revenue. This was, however, higher than the INR 1.63 billion estimated by the Street. Its consolidated net sales for the quarter rose over 6% on quarter to INR 13.23 billion, beating the Street's view of INR 12.78 billion by a wide margin. On a year-on-year basis, the company's bottom line grew over 5% and sales grew a little over 2%. 

The company's top line for the quarter was supported by strong growth in both services and technology solutions segments. Consolidated revenue from the company's largest segment, services, rose over 5% on quarter to INR 10.13 billion and that from the technology solutions segment rose nearly 11% on quarter to INR 3.11 billion. 

Growth in the company's technology solutions vertical was led by strong momentum in both education and product business, the company management said. Sales from the education segment saw a meaningful recovery in the reporting quarter as the previously deferred projects moved to execution, Tata Technologies said. It expects continued momentum in the technology solutions vertical, particularly in the education segment, in the coming quarters, the management said. It also expects to benefit from the seasonally strong second half of the fiscal year for the products business, when several maintenance contracts get renewed, Tata Technologies said.  

Within the services vertical, the company said it continue to see strong performance in aerospace segment, driven by sustained demand and consistent execution across maintenance, repair and operations, product lifecycle management, manufacturing, engineering, and digital transformation engagements. 

On the halt in operations of one its top clients, Jaguar Land Rover, after a cybersecurity attack in September, the company said that it was working with JLR for the phased restoration of information technology infrastructure. "...I'm very, very proud of the work that our teams have undertaken to support the ability of JLR to bring back up their production facilities and their core enterprise IT systems," Harris said. The company is working to ensure that all of its teams that are strategically important to JLR are in a position to continue its contribution, its management said. The company expects the impact due to the halt in operations of JLR to continue going forward. 

The engineering and research and development company had secured three large deals in the September quarter, the management said in the call. However, the company said it continues to see some delays in the ramp-up of large deals and clients' decision cycles.
 

Tata Technologies expects its margin for the December quarter to see pressure from wage revision. The company's employee costs are expected to increase in the December quarter owing to the wage revision, Tata Technologies said, adding that operational levers will likely mitigate the impact of these changes. For the September quarter, the company's employee benefits expense rose around 4% on quarter to INR 6.50 billion. Its trailing 12-month voluntary attrition rate worsened further to 15.1% from 13.8% in the previous quarter. "But this attrition is broadly in line with the trends that we are seeing in the industry," a top company official said. 

Tata Technologies announced its September quarter earnings after market hours Friday. Ahead of the earnings, its shares closed 1% lower at INR 685.20 on the National Stock Exchange.  End

Edited by Akul Nishant Akhoury

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