Tata Technologies Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Tata Technologies Ltd filed with BSE on 08 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Tata Technologies reported Q4 FY26 total revenue growth of 15.1% year-on-year and 12.4% in constant currency to Rs 1,572 crores, with services revenue growing 12% quarter-on-quarter in constant currency. EBITDA margin came in at 16%, an improvement of roughly 200 basis points from Q3, aided by operating leverage as volumes scaled. Management said growth was broad-based across Automotive, Aerospace, Industrial Heavy Machinery, and Technology Solutions, and highlighted multiple Full Vehicle Program wins along with continued integration of the ES-Tec acquisition.
Numbers mentioned
Total revenue: Rs 1,572 crores (Q4 FY26)
p. 11
“Services revenue grew 15% Q-o-Q and 11.9% in constant currency to INR 1,220 crores, driving total revenue growth of 15.1% reported and 12.4% in constant currency to INR 1,572 crores for the quarter.”
Uttam Gujrati, page 11 of the filed PDF · View the filing
Services revenue: Rs 1,220 crores (Q4 FY26)
p. 11
“Services revenue grew 15% Q-o-Q and 11.9% in constant currency to INR 1,220 crores, driving total revenue growth of 15.1% reported and 12.4% in constant currency to INR 1,572 crores for the quarter.”
Uttam Gujrati, page 11 of the filed PDF · View the filing
EBITDA margin: 16% (Q4 FY26)
p. 12
“EBITDA margins for the quarter came in at 16%, representing a roughly 200-basis-point improvement from Q3.”
Uttam Gujrati, page 12 of the filed PDF · View the filing
EBITDA: Rs 252 crores (Q4 FY26)
p. 12
“our EBITDA stood at INR 252 crores, up 30.7% sequentially.”
Uttam Gujrati, page 12 of the filed PDF · View the filing
EBIT: Rs 220 crores (Q4 FY26)
p. 13
“Our Operating Profit or EBIT increased by 27.8% sequentially, reaching INR 220 crores.”
Uttam Gujrati, page 13 of the filed PDF · View the filing
Net income: Rs 163 crores (Q4 FY26)
p. 13
“Excluding this non-recurring item, profit before tax grew 21.6% sequentially to INR 272 crore, and net income came in at INR 163 crores.”
Uttam Gujrati, page 13 of the filed PDF · View the filing
Technology Solutions segment revenue: Rs 353 crores (Q4 FY26)
p. 11
“Technology Solutions segment reported revenues of INR 353 crores for the quarter, led by a strong performance in the education business, which grew 40% Q-o-Q.”
Uttam Gujrati, page 11 of the filed PDF · View the filing
Net cash position: Rs 1,188 crores (as of end Q4 FY26)
p. 14
“At the end of the quarter, the net cash position stood at INR 1,188 crores compared to INR 524 crores at the end of Q3.”
Uttam Gujrati, page 14 of the filed PDF · View the filing
Total DSO: 95 days (as of March 2026)
p. 14
“Our collection efficiency improved during the quarter with total DSO, both billed and unbilled, coming in at 95 days at the end of March, an improvement from the 111 days that we reported at the end of December.”
Uttam Gujrati, page 14 of the filed PDF · View the filing
Free cash flow: Rs 742 crores (FY26)
p. 14
“For the fiscal 2026, the business generated free cash flow of INR 742 crores, representing a healthy EBITDA-to-FCF conversion of 87%.”
Uttam Gujrati, page 14 of the filed PDF · View the filing
Total headcount: 12,646 associates (as of end Q4 FY26)
p. 14
“At the end of the quarter, our total headcount stood at 12,646 associates, representing a net addition of 66 employees sequentially.”
Uttam Gujrati, page 14 of the filed PDF · View the filing
Voluntary attrition: 16.2% (trailing 12 months as of Q4 FY26)
p. 14
“Over the past 12 months, voluntary attrition increased marginally to 16.2% compared with 15.8% in the previous quarter.”
Uttam Gujrati, page 14 of the filed PDF · View the filing
Aerospace annual revenue run rate: over $40 million (FY26)
p. 10
“In the last 4 years, our Aerospace revenues have grown 8x and is now at over $40 million in terms of annual run rate.”
Warren Harris, page 10 of the filed PDF · View the filing
ES-Tec revenue contribution: about $9 million in Q4 (Q4 FY26)
p. 28
“So, ES-Tec contribution in quarter 4 has been about $9 million.”
Uttam Gujrati, page 28 of the filed PDF · View the filing
Final and special dividend: Rs 11.70 per share (FY26)
p. 13
“the Board has proposed a special dividend of INR 3.35 per share, taking the total dividend for the year to INR 11.70 per share, in line with the dividend paid last year.”
Uttam Gujrati, page 13 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Operating margin exit run rate — exceeds 18% · exit of FY27
stated firmly by Warren Harris
p. 6
“we expect to exit FY27 with an operating margin run rate that exceeds 18%, driven by operating leverage, portfolio mix improvement, and disciplined execution.”
Warren Harris, page 6 of the filed PDF · View the filing
Organic top-line growth — double-digit · FY27
stated firmly by Warren Harris
p. 6
“We continue to expect double-digit organic top-line growth, excluding any inorganic contribution from ES-Tec”
Warren Harris, page 6 of the filed PDF · View the filing
Full Vehicle Program closures — at least another 2 · next 8 to 12 weeks
stated conditionally by Warren Harris
p. 5
“we expect at least another 2 to close over the next 8 to 12 weeks”
Warren Harris, page 5 of the filed PDF · View the filing
Revenue target — $1 billion · within the next 2 to 3 years
stated as an aspiration by Warren Harris
p. 29
“I think within the next 2 to 3 years, we have the opportunity to get to where we need to get to.”
Warren Harris, page 29 of the filed PDF · View the filing
Growth cadence across FY27 — second half growing faster than first half, consistency across quarters · FY27
stated conditionally by Warren Harris
p. 30
“I think it's likely that the second half of the year will grow faster than the first half of the year. But we expect consistency across all 4 quarters.”
Warren Harris, page 30 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said organic growth was about 8% and ES-Tec contributed about 4%, with JLR returning to its pre-cyberattack run rate.
Answered by Warren Harris
Asked by Chandramouli Muthiah: Breakdown of the Q4 revenue upside between organic and inorganic, and sustainability including JLR recovery.
p. 16
“Against the 12%, 8% was organic, about 4% was from ES-Tec.”
Warren Harris, page 16 of the filed PDF · View the filing
Management said the post-merger integration is on track and cross-sell business has already been won.
Answered by Warren Harris
Asked by Chandramouli Muthiah: Status of ES-Tec integration and revenue/cost synergies.
p. 17
“The post-merger integration plans with ES-Tec are very much on track.”
Warren Harris, page 17 of the filed PDF · View the filing
Management said propulsion mix is more balanced now and customers are investing across ICE, hybrid and EV programs.
Answered by Warren Harris
Asked by Chandramouli Muthiah: How EV project write-downs at Stellantis, Ford, GM and Renault affect the outlook and what non-EV powertrain trends are driving full vehicle wins.
p. 19
“whether it's a traditional ICE vehicle, whether it's a plug-in hybrid, whether it's a range-extender, or whether it's a full battery electric vehicle, we're engaging with our customers in all of those areas.”
Warren Harris, page 19 of the filed PDF · View the filing
Management expects discretionary spend to tighten if the crisis continues but does not expect it to impact capex or new product commitments.
Answered by Warren Harris
Asked by Bhavik Mehta: How client conversations have evolved given Middle East crisis-related supply disruption concerns.
p. 21
“we're fully confident that the indirect impact of what's going on there will not undermine or, in any way, challenge the double-digit expectations that we have for this year.”
Warren Harris, page 21 of the filed PDF · View the filing
Management attributed the dip to a one-time true-up of annual expenses in Q4, not a change in trend.
Answered by Uttam Gujrati
Asked by Bhavik Mehta: Why BMW JV profit share dipped quarter-on-quarter.
p. 21
“This was more of a 1 quarter phenomenon, whereas in quarter 4, there was certain true-up of the whole year expenses.”
Uttam Gujrati, page 21 of the filed PDF · View the filing
Management pointed to services growth, offshore mix, pyramid efficiency and AI-driven cost reduction as the drivers.
Answered by Uttam Gujrati
Asked by Bhavik Mehta: What is the bridge from 16% EBITDA margin to the 18% target over the next four quarters.
p. 22
“volume growth together with them will help us drive coming back to an exit of 18% by the time we end the year.”
Uttam Gujrati, page 22 of the filed PDF · View the filing
Management said wins were broad-based geographically and that German OEMs are increasingly open to offshoring to India.
Answered by Warren Harris
Asked by Karan Uppal: Is there a geographic trend across the multi-year deals and full vehicle wins, and is European offshoring accelerating.
p. 24
“I think the announcement that we made 18 months ago with BMW is very much a signal to everybody else.”
Warren Harris, page 24 of the filed PDF · View the filing
Management said Airbus is a flagship account but growth is also coming from North American engine manufacturers and Air India's MRO expansion.
Answered by Warren Harris
Asked by Karan Uppal: Composition of the $40 million Aerospace annualized run-rate and outlook for FY27.
p. 25
“the Aerospace business is certainly being propelled by our involvement in the EMES3 program at Airbus.”
Warren Harris, page 25 of the filed PDF · View the filing
Management said growth is expected both inside and outside the Tata Group given influence at the C-suite level of top customers.
Answered by Warren Harris
Asked by Karan Uppal: Will double-digit organic growth guidance apply to both anchor and non-anchor Automotive clients.
p. 26
“our confidence in double-digit growth is really informed by the knowledge of things like cycle plans, the knowledge of priorities, and the influence that we are extending in terms of the decision-making that's going on within those accounts.”
Warren Harris, page 26 of the filed PDF · View the filing
Management quantified the Q4 contribution and gave an estimate for the broader period.
Answered by Uttam Gujrati
Asked by Sameer Pardikar: What was the ES-Tec dollar contribution for FY26.
p. 28
“So, ES-Tec contribution in quarter 4 has been about $9 million. And in previous month, it was 1/3. So roughly $11 million to $12 million has been the contribution from ES-Tec.”
Uttam Gujrati, page 28 of the filed PDF · View the filing
Management said they intend to remain focused on Automotive, Industrial Heavy Machinery and Aerospace rather than diversify.
Answered by Warren Harris
Asked by Satish: Are there plans to enter new business verticals beyond current focus areas.
p. 29
“for us right now, we're not looking to diversify into other industry verticals.”
Warren Harris, page 29 of the filed PDF · View the filing
Management said $1 billion remains the long-term target, achievable within a few years with organic growth complemented by inorganic deals.
Answered by Warren Harris
Asked by Satish: What is the realistic timeline to reach $1 billion in revenue.
p. 29
“Our North Star from a revenue perspective has been $1 billion, and it continues to be that.”
Warren Harris, page 29 of the filed PDF · View the filing
Management said the guidance is based on the current order book and pipeline, not on an assumed improvement in demand.
Answered by Warren Harris
Asked by Ankur Pant: What demand environment assumptions underpin the FY27 growth guidance.
p. 30
“So, it's not factoring in any improvement to the demand environment that will be required to deliver against those numbers.”
Warren Harris, page 30 of the filed PDF · View the filing
Risks flagged
Geopolitical uncertainty and tariffs led OEMs to pause or defer product plans
p. 4
“geopolitical uncertainty - and in particular the impact of tariffs and related trade actions - led many automotive and Industrial Heavy Machinery OEMs to pause, defer, or re-sequence product plans”
Warren Harris, page 4 of the filed PDF · View the filing
Middle East crisis could disrupt commodity supply chains for aluminium and plastics and tighten discretionary customer spend
p. 21
“I fully expect discretionary spend amongst our customers to tighten if the Middle East crisis continues to extend.”
Warren Harris, page 21 of the filed PDF · View the filing
Large EV project write-downs among European and North American OEMs
p. 18
“over the past 4 to 5 months, we've seen fairly large EV project-specific write-downs at Stellantis, at Ford, at GM and in some ways even at Renault.”
Chandramouli Muthiah, page 18 of the filed PDF · View the filing
Competitive pressure from fast-moving Chinese OEMs
p. 27
“the innovation and the speed at which the Chinese OEMs are operating is remarkable.”
Warren Harris, page 27 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.