Motilal Oswal Advises Selling Tata Technologies at Rs 600 Amid Valuation Concerns Tata Technologies (TTL) reported first-quarter FY27 revenue of USD175 million, reflecting a 4.3% quarter-over-quarter increase in constant currency terms, surpassing the estimated 2% growth. The Services segment contributed USD137 million, up 4.3% QoQ, while the EBIT margin stood at 13.3%, slightly below the projected 14%. Adjusted profit after tax (PAT) rose 11.3% quarter-over-quarter and 6.1% year-over-year to INR1,808 million, though below the estimated INR1,985 million. Year-to-date, TTL’s revenue, EBIT, and adjusted PAT grew 33.8%, 30.7%, and 6.1% respectively in INR terms for FY27. For the second quarter of FY27, the firm anticipates revenue, EBIT, and adjusted PAT growth of 26.5%, 28.6%, and 21.5% YoY. Despite improved execution and broad-based growth across services, non-anchor automotive accounts, and Europe, Motilal Oswal maintains a "Sell" rating, citing valuations that appear premium relative to growth prospects and peer companies. The target price of INR600 is assigned, with the firm emphasizing that current valuations already reflect much of the expected recovery. The analysis highlights that while FY27 has started with a stronger performance, sustained execution of recent large deals will be critical. Management projects double-digit organic growth for FY27, with acceleration expected in the second half as recently secured contracts ramp up. However, the demand environment remains selective, and while TTL’s focus on full-vehicle development and software-led engineering has aided market share gains, the sustainability of this outperformance over multiple quarters remains uncertain. TTL’s growth trajectory has diverged from peers, though challenges persist.#motilal_oswal #fy27 #tata_technologies #tenneco #japanese_oem
Tata Technologies Reports Strong Q4 Earnings with 22.29% Revenue Growth Tata Technologies announced its quarterly earnings for the January-March period of the 2025-26 financial year, revealing a significant 8.1% year-over-year (YoY) increase in consolidated net profit to ₹204.17 crore. This marks a notable improvement from the ₹188.87 crore profit recorded in the same period of the previous fiscal year. The company’s revenue from operations surged by 22.29% YoY to ₹1,572.22 crore, compared to ₹1,285.65 crore in the fourth quarter of the 2024-25 fiscal year. Sequentially, revenue grew by 15.1% quarter-on-quarter (QoQ) from ₹1,365.73 crore. Breaking down the performance, the service division contributed ₹1,219.6 crore in revenue, reflecting a 19.1% YoY rise and a 15% QoQ increase. The technology solutions segment reported ₹352.6 crore in revenue, up 34.8% YoY and 15.4% QoQ. Operating EBITDA for the quarter reached ₹252.1 crore, a 8% YoY increase from ₹233.4 crore in the March FY25 quarter and a 30.7% QoQ jump from ₹192.9 crore in the December FY26 quarter. The EBITDA margin stood at 16% in Q4 FY26, slightly lower than the 18.2% margin in the year-ago period but improved sequentially from 14.1% in Q3 FY26. The company’s workforce totaled 12,646, with a 16.2% attrition rate over the last twelve months. In terms of dividends, the board recommended a final dividend of ₹8.35 and a one-time special dividend of ₹3.35 per equity share, totaling ₹11.70 per share with a face value of ₹2. This dividend, if approved at the Annual General Meeting (AGM), would be paid within 30 days of the meeting’s conclusion.#national_stock_exchange #tata_technologies #warren_harris #uttam_gujrati #annual_general_meeting
