Tata Technologies, a newly listed tech player backed by the Tata Group, is going to declare its Q1 results for FY26 on July 14. During Q1FY26, Tata Tech is expected to report a sharper decline in revenue compared to its siblings like TCS and Tata Elxsi. Profitability and EBIT margins are also expected to take a hit.
Tata Technologies Q1 Results Preview:
Analysts at Kotak Institutional Equities said, "We expect c/c revenue decline of 7.3% qoq for the services segment and 8.3% qoq overall. Weakness in the services segment due to moderating investments by anchor clients and partly offset by growth in the aerospace vertical."
According to them, Tata Tech is likely to witness a sharp decline in Technology solutions segment spread evenly across products and education business due to delayed project ramp-ups.
In terms of EBIT margins, Kotak expects it to decline by 160 basis points due to sharply lower revenues.
Meanwhile, analysts at Prabhudas Lilladher said, "We expect Tata Tech to report revenue decline of 3.8% QoQ CC in Services segment & 5.7% QoQ CC at overall level due to continued weakness in automotive segment & weakness in Tech solutions business. In USD terms we expect revenue decline of 3.5% QoQ. On margins front we expect EBIT margin to decline by 180 bps QoQ due to weak operational performance."
Key Factors To Focus On Tata Technologies Q1 Results?
In Kotak's view, "We expect focus on (1) Underpinning factors for double-digit revenue growth aspiration in FY2026E given weak start to the year and continued tepid demand environment, (2) medium-term outlook on spends by anchor clients and Tata group entities; (3) new deal wins in aerospace verticals; (4) ramp-up of BMW JV; (5) outlook on technology solutions segment."
For the entire financial year 2024-25, Tata Tech posted operating revenue of Rs 51,685 million, while its operating EBITDA stood at Rs 9,341 million with EBITDA margin at 18.1%. Also, the company closed a total of 17 large deals in FY25, which included one marquee deal exceeding $500 million, two $50 million plus deals, and one $20 million plus deal.
Tata Technologies Share Price:
Last week, on July 11, Tata Tech share price closed at Rs 708.25 apiece, broadly flat on BSE, with market cap of Rs 28,731.47 crore. The stock's 52-week high and low is at Rs 1,135.00 apiece and Rs 595.05 apiece respectively. Its return on equity is around 60.54%, and price-to-equity ratio is at 33.84x.
YTD, Tata Tech shares have dropped by 20.5%.
About Tata Technologies:
Tata Technologies is the strategic engineering partner businesses turn to when they aspire to be better. Businesses across automotive, aerospace, industrial heavy machinery and other industries work with Tata Technologies to conceptualize, develop and realize safer, more sustainable products and experiences that improve people's lives.
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