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Informist, Friday, Jul. 17, 2026

 

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--Tata Tech: Saw strong traction in large strategic deals in Q1 
--CONTEXT: Comments by Tata Tech's management in post-earnings analyst call 
--Tata Tech: Continue to expect double-digit organic sales growth in FY27 
--Tata Tech: See AI as margin lever and strategic differentiator 
--Tata Tech: Tech solutions sales grew in Q1 led by education business 
--Tata Tech: Aims to deliver QoQ margin improvement in Q2 despite wage hikes 
--Tata Tech: Don't see growth tapering in H2, see growth acceleration 
--Tata Tech: Expect continued deal momentum going forward 
--Tata Tech: Expect H2 to be much better than H1 in FY27 
--Tata Tech: To start ramping-up $100-million Tenneco deal in Q2 

 

By Arya S. Biju and Astha Oriel

 

MUMBAI/NEW DELHI – Tata Technologies Ltd. aims to deliver a sequential improvement in its margin for the September quarter through operational discipline and execution, which are expected to absorb the impact of the annual wage hike to be undertaken during this period, its management told analysts in a post-earnings call Friday.   

 

"FY26 (2025-26 (Apr-Mar)) was a year of transition and investment for Tata Technologies. FY27 is poised to be a breakout year," Warren Harris, chief executive officer and managing director of Tata Tech, said in the call. "Confidence is not based on aspiration alone. It is based on the quality of the demand we are seeing, the strength of our order book, the momentum in large deal conversion, the visibility we now have across our pipeline, and the operating discipline we are bringing to margin expansion and productivity improvement."  

 

The company continues to expect strong, double-digit organic revenue growth for FY27, with the services segment being the primary growth engine, Harris said. The company's margin expansion will be supported by scale, utilisation, delivery productivity, artificial intelligence-led efficiency, and disciplined cost management. "AI remains a central pillar of this confidence...We see AI as both a margin lever and as a strategic differentiator, helping our clients engineer better products faster and more efficiently," he added. 

 

"So I think that as we've gone through the (June) quarter, given deal signings, given momentum, given the engagement that we've got with customers, our confidence has only grown. So we do not see a tapering of growth in the second half of the year. We actually see growth accelerating as we move through the quarters this fiscal", Harris said. The company expects the second half of FY27 to be "much greater" than the first, but how that spreads across the quarters will depend on the ramp-up of deals won. "Our ability to ramp up (deals) is dependent not just upon the deals that we can mobilise, but also the readiness of our customers and the investments that need to be made in infrastructure," he said. 

 

The sales growth for the current financial year is expected to be broad-based across geographies and in terms of anchor and non-anchor clients, the company management said. The company sees continued momentum in geographies such as US, Japan and Europe. "Despite some of the headwinds associated with the performance challenges that some of the German OEMs (original equipment manufacturers) have got, we're seeing an uptick in Germany. We expect that to continue," Harris said.

 

During the June quarter, Tata Technologies continued to see strong traction in large strategic deals and expects this momentum to continue moving forward. Its most significant order win during the quarter was the $100-million partnership with Tenneco, which expands its relationship beyond traditional engineering services into a multi-year transformation programme spanning engineering, digital technologies, AI-enabled processes, and operational modernisation, the management said. It expects to start ramping up the deal from the September quarter. 

 

The product engineering and digital services company's consolidated net profit for the quarter ended June declined over 11% sequentially to INR 1.81 billion, but was still above the INR 1.80 billion estimated by the Street. The company's consolidated revenue from operations for the quarter grew nearly 6% sequentially to INR 16.65 billion, also better than the INR 16.20 estimated by the Street. 

 

Revenue from the company's largest segment, services, grew over 6% on quarter and around 35% on year to INR 12.97 billion. Sales from the company's technology solutions vertical grew over 4% on quarter and 31% on year to INR 3.68 billion. Technology solutions sales were led by the education business, which saw 9.3% growth while the product business saw a degrowth of 2.6%, primarily due to seasonality as it typically experiences strong demand in the final quarter of the calendar year, Uttam Gujrati, chief financial officer of the company said. 

 

Tata Technologies announced its quarterly earnings after market hours on Friday. Shares of the company closed nearly 1% lower at INR 758.05 on the National Stock Exchange.  End

 

Edited by Deepshikha Bhardwaj

 

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