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Informist, Thursday, Apr. 30, 2026

By Arya S. Biju

MUMBAI – Tata Technologies Ltd. is likely to post a sharp sequential rise in its consolidated net profit for the March quarter, after declining in the previous three quarters, aided by continued traction from its joint venture with BMW group, strong revenue growth, and a recovery in its core business, according to analysts. Absence of one-time costs related to implementation of the new labour codes--as seen in the previous quarter, recovery in business with one of its largest clients, Jaguar Land Rover, and acquisitions will also support the company's bottom line. 

The engineering, research and development major's consolidated net profit for the reporting quarter is expected to rise over 28 times on quarter to INR 1.88 billion, according to the average of estimates from eight brokerages. The sharp sequential jump in net profit is on account of a one-time cost of INR 1.64 billion related to labour code implementation in the previous quarter. The company's adjusted bottom line is expected to rise over 10% sequentially in Jan-Mar, marking the second-fastest net profit growth since its listing. On a year-on-year basis, net profit is likely to decline marginally by about 0.5%.

The company's consolidated revenue is expected to rise nearly 12% on quarter to INR 15.26 billion, according to brokerage estimates. If realised, this will mark the sharpest sequential rise in the company's top line since its listing. On a year-on-year basis, the company's revenue is expected to jump around 19%, also the strongest growth since listing. 
 
The highest estimate for the company's net profit of INR 2.04 billion is from JM Financial Institutional Securities Pvt. Ltd. and the lowest of INR 1.63 billion is from Kotak Securities Ltd. Estimates for the company's top line for the quarter range from a low of INR 15.00 billion by Prabhudas Lilladher Pvt. Ltd. to a high of INR 15.56 billion by ICICI Securities Ltd.

The Tata group-owned company's revenue, in constant currency terms, is expected to grow 7.9-11.3% sequentially in the March quarter, estimates from six brokerages showed. This growth is led by traction in both services and technology segments, along with contribution from its recent acquisition of ES-Tec group, according to analysts. Further, a recovery in operations of one of its largest clients, Jaguar Land Rover, which was impacted by a cybersecurity incident in August, is also expected to support the company's sales during the quarter. Over 20% of the company's revenue comes from JLR, according to media reports.  

In constant currency terms, revenue from the company's largest segment, services, is expected to grow 5.3% sequentially, led by growth in its automotive business, Kotak Securities said. It also expects the company's technology segment to see healthy sales growth led by execution of deals won in the previous quarters in the education business. The company's products business, on the other hand, is expected to see a seasonal decline in its sales, Kotak Securities said. 

The company's earnings before interest and tax margin for the March quarter is expected to expand by 180-440 basis points sequentially to 13.3-15.9%, according to estimates from eight brokerages. Absence of labour code implementation-related costs, wage hikes, normalisation of JLR operations, a sharp depreciation of the rupee against the dollar, and operational efficiencies are expected to drive margins in the March quarter, analysts said.

For 2025-26 (Apr-Mar), Tata Technologies's consolidated net profit is seen in the range of INR 5.34 billion-INR 7.10 billion, according to estimates from three brokerages. The company's consolidated revenue for the full year is expected to be INR 54.40 billion-INR 54.52 billion. In FY25, the company had reported a consolidated net profit of INR 6.77 billion on a revenue of INR 51.68 billion.

Tata Technologies will announce its March quarter earnings on Monday. Market participants will watch out for the management's commentary on FY27 growth outlook, demand environment, and client spending amid the ongoing geopolitical tensions. Updates on the company's deal pipeline, progress in its joint venture with BMW group, and portfolio mix changes will also be monitored by analysts. 

At 1118 IST, shares of Tata Technologies traded slightly lower at INR 570.40 on the National Stock Exchange. The stock has fallen around 14% since the company announced its December quarter earnings on Jan. 16 and over 59% from its all-time high of INR 1,400, hit on Nov. 30, 2023.

Of the seven research reports on the company available with Informist, three have a 'buy' or equivalent recommendation on the stock, three have a ‘hold' or equivalent recommendation, and one has a 'sell' call on the stock. Target prices for 'buy' recommendations range from INR 550 to INR 780 and those for 'hold' call range from INR 660 to INR 729.      
 
Following are the March quarter earnings estimates for Tata Technologies from eight brokerage firms in descending order of the estimate of net profit in INR billion:

End

US$1 = INR 94.26

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Tanima Banerjee

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