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Informist, Monday, May 4, 2026

 

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--Tata Tech: Secured four large deals in Jan-Mar FY26 
--CONTEXT: Tata Tech management's comments in post-earnings analyst concall 
--Tata Tech: Diversifying portfolio beyond traditional customers 
--Tata Tech: See increasing contribution from BMW venture in FY27 
--Tata Tech: Will remain selective, disciplined in hiring going ahead 
--Tata Tech: Confident of managing attrition in FY27 
--Tata Tech: Saw 8% organic sales growth QoQ, 4% inorganic contribution Q4 
--Tata Tech: Portfolio more balanced in terms of propulsion systems today 
--Tata Tech: Don't see West Asia war affecting clients' new product capex 
--Tata Tech:Clients feel they will have to invest to keep competition at bay 
--Tata Tech: Expect to close more deals in next few weeks 
--Tata Tech: See consistent organic revenue growth through FY27 
 

 

By Shakshi Jain and Pallavi Singhal

 

NEW DELHI – The supply chain issues emerging from the West Asia war may adversely impact customers of Tata Technologies Ltd., but the company does not see this affecting their capital expenditure committed towards new products, Chief Executive Officer and Managing Director Warren Harris said in a post-earnings conference call with analysts late Monday. "I fully expect discretionary spend amongst our customers to tighten if the Middle East crisis continues to extend. Now, having said that, I don't expect that to impact capex or indeed the commitments that are being made to new products," Harris said.

 

As per Harris, most of the company's customers paused, delayed, or in some cases deferred programmes while grappling with the impact of tariffs imposed by the US. "That demand and need to invest in what will define their competitive position in the future is really defining the type of conversations that we're having with our customers."

 

Harris later explained that the speed at which Chinese original equipment manufacturers were innovating today was driving competitive concerns in Europe and in North America. Meanwhile, through much of FY25 and the first half of FY26, the company's customers had to pause and delay plans, resulting in a need to play catch up. "I think increasingly, this is the view of our customers, that they have to invest in order to be able to resist the competition that is absolutely going to come from the Chinese," Harris said.

According to Harris, the indirect impact of the West Asia war has been factored into the company's revenue growth guidance for 2026-27 (Apr-Mar). Tata Technologies has guided for double-digit organic growth along with sustainable margin expansion for the year. "What gives us confidence is that this momentum is already visible across the business. We are making tangible progress in diversifying our portfolio beyond our traditional anchor customers," Harris said, later adding that the revenue growth is likely to be consistent across the four quarters in the year. The company also anticipates higher revenue contribution from its joint venture BMW TechWorks India in FY27.

 

As per the company, the March quarter, in which it signed four large deals, marked a turning point for the company. "...We expect, as I signalled before, to close more deals in the next four to six weeks," the chief executive said.

 

Earlier in the day, Tata Technologies reported a multifold sequential increase in its consolidated net profit for the March quarter at INR 2.04 billion and over 15% growth in consolidated revenue at INR 15.72 billion. In the 12 months ended Mar. 31, the company's consolidated sales increased nearly 7% on year to over INR 55 billion, but the consolidated net profit declined over 19% on year to INR 5.47 billion.

 

Harris said the sequential growth in organic revenue stood at 8% in the March quarter, while the inorganic contribution was 4%.

 

Tata Technologies' total headcount increased marginally to 12,646 employees in the March quarter from 12,580 personnel in the December quarter. Its attrition rate in the past 12 months was 16.2%, up from 15.8% at the end of the December quarter. The company's management said it remained confident of managing attrition in FY27 and the approach towards hiring would be selective and disciplined.

 

Answering a query on the current powertrain mix in its deals, Harris said, "The portfolio of propulsion systems is much more balanced today than it was, say, two years ago when everybody was all in on EVs (electric vehicles). But the good news for Tata Technologies is that our customers are investing, and we're relatively agnostic in terms of propulsion system."

 

On Monday, shares of Tata Technologies closed 1.7% higher at INR 591.05 on the National Stock Exchange.  End

 

Edited by Avishek Dutta

 

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