Tata Technologies Limited (TATATECH)
Small CapIT stocks · Small cap · NSE
Tata Technologies is an engineering and digital services company, specializing in product development and digital transformation for global manufacturers, particularly in automotive, aerospace, and industrial heavy machinery. It focuses on software-defined products, AI-enabled processes, and end-to-end engineering solutions.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/2 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Average · 42/100margin compression · Rev +34% YoY · PAT +6% YoY · +6% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,665 Cr | +33.8% | +5.9% |
| EBITDA | ₹267 Cr | +33.5% | +6.0% |
| Operating margin | 16.0% | +0 bps | +0 bps |
| PAT | ₹181 Cr | +6.5% | -11.3% |
| PAT margin | 10.9% | -280 bps | -211 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q1 FY27 revenue up 25.2% YoY (CC) and 4.3% QoQ (CC), driven by strong services growth and large deal momentum. Management expresses increased confidence in FY27 double-digit organic growth with accelerating H2.
Strong Q1 performance with robust YoY and QoQ growth in both services and technology solutions. Diversification strategy is yielding results, reducing anchor account dependence. Large deal wins and AI investments position the company for accelerated growth, despite near-term margin investments and some Germany business headwinds.
Revenue by Segment (Q1 FY27)
Latest issuer-disclosed distribution across 2 reported categories.
Large Strategic Deal Conversion
Strong traction in large strategic deal pursuits, including a $100M engagement with Tenneco and a full vehicle development program with a Japanese OEM.
Diversification beyond Anchor Accounts
Automotive non-anchor revenue grew 56.3% YoY; Aerospace and IHM are becoming increasingly meaningful contributors.
Software-Defined Products & AI
Customers prioritize programs accelerating product launches, improving efficiency, and strengthening software/AI capabilities.
Europe as a Growth Engine
Europe revenue reached $67.9 million, representing growth of 10.1% QoQ, reinforced by Es-Tec integration and Germany's strengthening.
BMW TechWorks Engineers
BMW TechWorks has crossed the milestone of 2,000 engineers, strengthening software-led engineering credentials.
Talent Development
TechVarsity delivered over 9,000 learning hours across GenAI, software-defined vehicles, and cybersecurity to over 2,000 employees this quarter.
Increased Outsourcing Propensity
Customers increasingly outsource complete work packages and products, particularly to organizations demonstrating turnkey responsibility.
Clarity in EV Investment Landscape
Periods of compromised demand due to tariff announcements and tapering EV demand are ending, leading to renewed investments.
Accelerated Product Cycles
AI acts as a force multiplier for productivity, enabling faster product development (18-24 months vs. 36-48 months for Western OEMs).
Aerospace Sector Growth
Confidence in scaling Aerospace vertical faster than automotive, driven by Airbus involvement, Tata Group investments, and demand in Southeast Asia/India.
Germany Business Restructuring
Navigating temporary headwinds in parts of Germany business as certain customers work through restructuring and cost optimization initiatives.
Upfront Investment for Large Deals
Large strategic engagements entered mobilization, requiring upfront investments in talent, ramp-up, and capability development, causing near-term margin dilution.
Annual Wage Increase
Expect to absorb the associated cost impact of annual wage increase in Q2.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Both YoY and QoQ comparisons are relevant. YoY reflects underlying business growth and market share gains, while QoQ highlights sequential momentum, deal ramp-ups, and the impact of strategic investments and seasonality in certain segments.
Total Revenue (CC)
$175.4 million, up 4.3% QoQ and 25.2% YoY.
Services Revenue (CC)
$136.6 million, up 4.3% QoQ and 24.4% YoY. Services represent ~78% of total revenue.
Operating EBITDA
$28 million, translating into an EBITDA margin of 16.1%, an increase of 10 basis points sequentially.
Automotive Non-Anchor Revenue
$43.9 million, growing 6.7% QoQ and 56.3% YoY.
FY27 Outlook
Continue to expect strong double-digit organic revenue growth for FY27, with services as the primary growth engine and margin expansion.
Growth Acceleration
Confidence has grown through the quarter; expect growth to accelerate as we move through the quarters of this fiscal, not taper in H2.
AI Strategy
AI strategy built around transforming service delivery, building differentiated offerings, strengthening partnerships, and delivering AI-ready talent.
Margin Ambition
Will balance investments with commitment to quarter-over-quarter margin improvement, prioritizing high-value engagements for long-term value.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Growth Acceleration in H2 FY27 | Q1 FY27 revenue growth 4.3% QoQ (CC). | Sequential revenue growth rates in Q2, Q3, and Q4 to confirm acceleration. |
| EBITDA Margin Expansion | 16.1% in Q1 FY27 (up 10 bps QoQ). | Continued quarter-over-quarter margin improvement, especially post Q2 wage hikes. |
| Diversification Progress | Anchor accounts 48.9% of services revenue; non-anchor automotive up 56.3% YoY. | Further reduction in anchor account concentration and sustained growth in Aerospace and IHM. |
| Large Deal Ramp-up | Tenneco deal execution beginning in Q2, full vehicle program scaling. | Revenue contribution and successful execution of new large strategic engagements. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
60BullishSMA20 +10.0% / mo · MACD −
Technical chart
TATATECHdaily · 1Y · AUTO+38.9%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 49. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~9.1% over last month) — short-term momentum positive.
- RSI(14) at 49 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 10% off 52W high · 58% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 19.0% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +3.6%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 44 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 44 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 10/15 to the score.
- Growth contributes 14/25 to the score.
Main drags
- Fair-value margin of safety is negative at -72.4%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 83rd percentile of the scored universe and 78th percentile within IT. No major sub-score weakness stands out.
High Trust Lite: Promoter holding is 55.2%. Key concern: ROCE trend is -4.1%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · IT: 78th pctile, median 69 · Small: 86th pctile, median 66
61 documents have extracted text, but claim history is not strong enough yet.
2 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 55.2%.
- ▸Promoter pledge is zero.
- ▸6 years of positive FCF.
- ▸ROCE is 20.9%.
Trust risks
- ▸ROCE trend is -4.1%.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 49.90
- P/B
- 8.28
- EV/EBITDA
- 30.95
- Market Cap
- 32484.00Cr
Profitability
- ROE
- 16.30%
- ROCE
- 20.90%
- ROA
- 6.29%
- Dividend Y
- 1.04%
Growth (CAGR)
- Revenue 5Y
- 18.00%
- EPS 5Y
- 21.00%
- Revenue 3Y
- 8.00%
- EPS 3Y
- -1.00%
Balance Sheet
- Debt/Equity
- 0.24
- Interest Coverage
- 20.44×
- Altman Z
- 5.73
- Book Value
- 96.60
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 6/5
- OCF
- 776.00 Cr
- EPS TTM
- 13.72
Shareholding
- Promoter Hold
- 55.17%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 76%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.