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Informist, Thursday, Jul. 16, 2026

 

By Shruti Nair

 

MUMBAI – Tata Technologies Ltd. is expected to report a significant sequential fall in consolidated net profit for the June quarter due to the high base in the previous quarter, which included a one-time income. However, on an adjusted basis, the company's bottom line is expected to jump sharply. The company's revenue for the June quarter is expected to rise modestly, driven mainly by the ramp-up of recently signed large deals and traction in select segments, according to brokerages tracking the company.

 

Tata Tech's consolidated net profit for the June quarter is expected to fall around 12% sequentially to INR 1.80 billion, according to the average of estimates from eight brokerages. However, excluding the one-time profit gain in the March quarter, the bottom line is likely to rise by over 21%. The highest net profit estimate for the June quarter is INR 1.99 billion from Motilal Oswal Financial Services Ltd. and the lowest is INR 1.58 billion from JM Financial Institutional Securities Pvt. Ltd. On a year-on-year basis, the company's bottom line is expected to rise over 5%.

 

The product engineering and digital services company's consolidated revenue for the reporting quarter is expected to rise around 3% sequentially to INR 16.19 billion, according to the average of estimates. The highest revenue estimate is INR 16.39 billion from ICICI Securities Ltd. and the lowest is INR 15.87 billion from Nirmal Bang Equities Pvt. Ltd. On a year-on-year basis, the top line is expected to grow over 30%. Tata Tech's consolidated bottom line more than tripled sequentially to INR 2.04 billion in the March quarter, driven by a one-time income of INR 561 million from the reversal of provisions related to the new labour codes. Excluding the one-time income, the company's bottom line was INR 1.48 billion.

 

In constant-currency terms, brokerages expect Tata Tech's June-quarter revenue to grow 0.5-2.0%, driven by the ramp-up of recently won deals. Motilal Oswal expects modest growth to be supported by the ramp-up of recently won large deals and improving traction in the automotive segment. Nirmal Bang echoed this view but expects some impact from the conflict in West Asia.

 

JM Financial also expects deal ramp-ups to drive revenue, notably from services, and sees sequential growth in the segment of 2.4% in constant currency terms. Kotak Securities estimates that revenues from the services segment will rise 3.1% in constant currency terms, primarily driven by the automotive and aerospace verticals.

 

In the June quarter, Tata Tech signed a deal with US-based original equipment manufacturer Tenneco LLC, involving an investment of over $100 million over five years. Tata Tech also announced in September that it would acquire German automotive engineering services provider ES-Tec Group for 75 million euros (INR 7.75 billion) over two years. Investors will await updates on the ramp-up in the joint venture between Tata Technologies and BMW Group, launched in 2024, which focused on automotive software development and digital innovation.

 

Margin Momentum

Brokerages expect Tata Technologies' earnings before interest and taxes margin to expand 20–78 basis points sequentially for the June quarter. Kotak Securities expects the smallest expansion of 20 bps, with currency benefits partly offset by costs associated with ramping up new deals. At the other end, Indsec Securities and Finance Ltd. forecasts a 78 bps expansion, as cost-efficiency measures are expected to offset higher outsourcing investments. Elara Securities also expects margin improvement with a 50 bps sequential expansion driven by operating leverage. For the March quarter, the company recorded an EBIT margin of 14% and an earnings before interest, taxes, depreciation, and amortisation margin of 16%.

 

Tata Technologies will announce its June quarter earnings on Friday. Management's comments on the demand outlook for 2026-27 (Apr-Mar) and execution against its double-digit organic growth guidance will be in focus. Other key areas of interest include client spending trends across anchor and non-anchor accounts, progress on ES-Tec integration, and the ramp-up of engagements with a Japanese original equipment manufacturer. Investors will also seek updates on traction in the aerospace and manufacturing verticals and the execution of full-vehicle engineering programmes.

 

Thursday, shares of Tata Technologies ended at INR 765.55 on the National Stock Exchange, up 0.9% from the previous close. The stock has gained nearly 30% since the company reported its March quarter earnings on May 4.

 

Of the seven research reports on the company available with Informist, three have a 'hold' or equivalent recommendation on the stock with an average target price of INR 638, which is nearly 17% lower than the current market price. Three have a 'sell' or equivalent recommendation, with an average target price of INR 513, which is nearly 33?low the current market price. Only one brokerage has a 'buy' or equivalent recommendation on the stock with a target price of INR 720.

 

The following are the Apr-Jun earnings estimates for Tata Technologies from eight brokerages, in descending order of the estimate of net profit, in INR billion:

 

Brokerage	Revenue	Net profit	EBITDA
Motilal Oswal Financial Services Ltd.	16.25	1.99	2.76
ICICI Securities Ltd.	16.39	1.90
Indsec Securities and Finance Ltd.	16.20	1.90
Prabhudas Lilladher Pvt Ltd.	16.00	1.80
Kotak Securities Ltd.	16.22	1.77	2.62
Elara Securities (India) Pvt. Ltd.	16.22	1.75
Nirmal Bang Equities Pvt. Ltd.	15.87	1.67
JM Financial Institutional Securities Pvt. Ltd.	16.36	1.58
Average	16.19	1.80	2.69

 

End

 

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

 

Edited by Shubhayan Bhattacharya

 

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