Tata Technologies Q2: Profit declines 5%, misses estimates; revenue grows 28%

Tata Technologies on Wednesday, October 14, reported a 5.2% year-on-year (YoY) decline in consolidated net profit to ₹171.4 crore for the September quarter, compared with ₹180.8 crore in the year-ago period.

The company’ revenue in US dollar terms rose 22.2% year-on-year in constant-currency terms, while services segment revenue grew 26.2%.

Revenue from operations rose 28.4% YoY to ₹1,698.8 crore from ₹1,323.3 crore in Q2 FY26. Earnings before interest and tax (EBIT) increased 25.3% to ₹238.7 crore from ₹190.6 crore, while the EBIT margin declined to 14.1% from 14.4%.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 31.5% YoY to ₹273.3 crore. The EBITDA margin expanded 40 basis points to 16.1% from 15.7% a year ago, remaining flat sequentially.

Tata Technologies' revenue and operating performance came in ahead of a poll of three brokerages — Haitong, Kotak Institutional Equities and Motilal Oswal Securities — while net profit missed estimates.

Metric	Actual (₹ crore)	Poll estimate (₹ crore)	Performance
Revenue	1,698.8	1,664.6	Beat
EBIT	238.7	230	Beat
EBIT margin	14.1%	13.5%	Beat
Net profit	171.4	200	Miss
US dollar revenue ($ million)	177.9	177.8	In line

Revenue was estimated at ₹1,664.6 crore and earnings before interest and tax (EBIT) at ₹230 crore, against reported figures of ₹1,698.8 crore and ₹238.7 crore, respectively. However, net profit of ₹171.4 crore fell short of the ₹200 crore estimate.

The company’s services segment revenue rose 33.9% YoY to ₹1,355.7 crore, while revenue from its technology solutions segment increased 10.5% to ₹343.1 crore.

Warren Harris, Chief Executive Officer and Managing Director of Tata Technologies, said, “I am pleased with our strong performance in Q2, with revenues growing 28% year-on-year, reinforcing our positive outlook for FY27.”

“We remain confident in delivering strong double-digit growth for the full year, supported by robust demand, ongoing program ramp-ups, and healthy pipeline conversion,” he added.

Chief Financial Officer Uttam Gujrati said the performance reflected the company’s diversified portfolio, improving deal momentum and disciplined execution.

“While we continue to navigate some near-term challenges, particularly within certain customer segments and geographies, the underlying demand environment remains encouraging, and our strategic programs continue to scale well,” Gujrati said.

New automotive and engineering deals

During the quarter, Tata Technologies secured a $138 million full-vehicle programme with a leading luxury European automotive original equipment manufacturer (OEM). The engagement covers product development, manufacturing engineering, technical leadership and programme management across two vehicle platforms.

A leading North American commercial vehicle manufacturer also selected the company to lead the end-to-end development of a new vehicle platform and support its digital ecosystem.

The company further secured an engagement with a global automotive OEM for the development and virtual validation of next-generation vehicle software platforms. It was also selected as a digital transformation partner by a European Tier 1 supplier to modernise manufacturing operations across its global plants.

Tata Tech workforce and cash position

Tata Technologies’ workforce stood at 12,895 at the end of Q2 FY27, compared with 12,402 a year earlier. Voluntary attrition over the last twelve months stood at 15.6%, against 15.1% in the year-ago quarter.

Free cash flow was ₹223.5 crore during the quarter, compared with ₹247.9 crore in Q1 FY27. Cash and cash equivalents stood at $107.8 million at the end of September, after approximately $50 million in dividend payments during the quarter.

Shares of Tata Technologies ended 0.5% higher at ₹747.25 ahead of the Q2 results announcement on Wednesday. The stock has gained 16% so far in 2026.

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