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Informist, Thursday, Jan. 15, 2026

By Arya S. Biju

MUMBAI – Tata Technologies Ltd. is expected to report a mid-single digit sequential fall in its bottom line for the December quarter, dragged down primarily by the impact of the annual wage hike undertaken during the quarter. The fall in the net profit is despite the expected low-single digit sequential rise in its top line, supported by steady growth in its largest segment, services, and an inorganic contribution from its recent acquisition of Germany-based ES-Tec. 

The Tata group-owned company's consolidated net profit for the reporting quarter is expected to fall around 6% sequentially and over 7% on year to INR 1.56 billion, according to the average of estimates from eight brokerages. If this expectation comes true, this will mark the third straight quarter of a sequential fall in the company's net profit. 

The company's consolidated revenue, on the other hand, is expected to grow around 3%, both sequentially and on a year-on-year basis, to INR 13.59 billion, the average of eight estimates showed. This is, however, still lower than the over 6% sequential rise in revenue the company had reported in the trailing quarter. 

The highest estimate for the company's bottom line for the quarter is INR 1.64 billion by Nirmal Bang Equities Pvt. Ltd. and the lowest estimate is INR 1.47 billion by JM Financial Institutional Securities Pvt. Ltd. The estimates for the company's top line for the quarter range from a low of INR 13.30 billion by Elara Securities (India) Pvt. Ltd. to a high of INR 14.02 billion by Kotak Securities Ltd. 

In constant currency terms, the engineering and research and development major's revenue is expected to grow 0.5–2.7% sequentially, estimates from five brokerages showed. Strong growth in top clients, except for Jaguar Land Rover, which was affected by a cybersecurity attack towards the end of the trailing quarter, and traction in the aerospace and industrial heavy machinery verticals are expected to boost the company's top line for the quarter, Indsec Securities and Finance Ltd. said in a note. 

Some analysts expect the company's top line to see some impact of the production halt by its major client, Jaguar Land Rover. Production across all of JLR's global manufacturing facilities resumed only by mid-October. Brokerage Nirmal Bang, on the other hand, expects the company's revenue and margin for the reporting quarter to be supported by an "absence of headwinds from the JLR incident."

The company's earnings before interest and tax margin for the quarter is expected to decline 100-210 basis points sequentially, estimates from five brokerages showed. Wage hikes and seasonality in the technology solutions segment are expected to keep the company's margin under pressure, Kotak Securities said. Indsec Securities expects the company's margin to remain largely flat on quarter as it expects the positive impact of the depreciation of the rupee against the dollar and synergies from its acquisitions to offset the negative impact due to the wage hike. 

Tata Technologies will announce its December quarter earnings Friday. Market participants will watch out for management commentary on the recovery of demand, client conversations, and margin recovery. Updates on the company's joint venture with the BMW group and its acquisition of Germany-based ES-Tec will also be tracked by the Street. Further, updates on large-deal signings and the deal pipeline will also be watched for, according to broking firms. 

On Wednesday, shares of Tata Tech closed over 2% lower at INR 646.65 on the National Stock Exchange. The Indian equity market is closed Thursday on account of the municipal corporation elections in Maharashtra. Shares of Tata Tech have fallen around 6% since the company announced its September quarter earnings on Oct. 17. The stock is around 54% down from its all-time high of INR 1,400, which it had hit on Nov. 30, 2023.

Of the seven research reports on the company available with Informist, five have a 'sell' or equivalent recommendation on the stock, with an average target price of INR 580, which is over 10% lower than the current market price. Of the remaining two, one has a 'buy' call and the other has a 'hold' call on the stock.

 
Following are the December quarter earnings estimates for Tata Technologies from eight brokerage firms in descending order of the estimate of net profit in INR million:
 

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Edited by Tanima Banerjee

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