Tata Tech expects Q4 exit margin at 16%, QoQ services revenue growth at 10%
This story was originally published at 21:03 IST on 25 February 2026
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MUMBAI – Tata Technologies Ltd. expects its exit margin for the March quarter to improve to 16% as the volumes of automobile clients recover, the company said in an investor presentation Wednesday. During the December quarter, the company had reported a consolidated earnings before interest and tax margin of 12.6% and an operating earnings before interest, tax, depreciation, and amortisation margin of 14.1%.
Further, the company iterated its target of around 10% sequential revenue growth for the services business in the March quarter in dollar terms. The segment had reported a quarter-on-quarter revenue fall of 1% in dollar terms in the December quarter.
The company's EBIT margin has declined sequentially in every quarter so far in the financial year ending Mar. 31 owing to softness in automobile volumes and one-off costs, which the company said were transitional. It expects margins to improve in the future as volumes recover and the share of revenue from higher-value software increases. The company is confident its end-to-end program ownership and use of artifical intelligence to cut delivery cost will also aid margins.
The company is betting on its presence in China to help service global automobile players. "Tata Technologies is uniquely positioned as the critical bridge--connecting the strength of China's ecosystem with global clients and markets," the company said.
For the December quarter, Tata Technologies had reported, on a consolidated basis, a net profit of INR 66.40 million on a revenue of INR 13.66 billion. Wednesday, its shares closed 1% higher at INR 577.75 on the National Stock Exchange. End
Reported by Anshul Choudhary
Edited by Rajeev Pai
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