He also outlined a strategy to scale the business to $1 billion in revenue, aiming for margins of 20–21% over the next few years. As investments in automotive and engineering increase, Tata Technologies seeks to enhance its position through deeper customer relationships and comprehensive offerings.
Watch the complete conversation here or scroll down for edited excerpts.
In the January-March quarter of 2026 (Q4FY26), Tata Technologies reported an 8.1% increase in net profit to ₹204 crore, while revenue rose by 22.3% to ₹1,572.2 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) saw an 8% year-on-year growth to ₹252 crore, though EBITDA margin fell to 16.1% from 18.2% in the previous year. The Q4 margins did not include a one-time exceptional reversal tied to the implementation of the new labor code.
The Pune-based product engineering firm in the auto and aerospace sectors, a subsidiary of Tata Motors, boasts a market capitalization of approximately ₹26,027.92 crore. Its shares have declined nearly 4% over the past year.
These are edited excerpts from the interview.Q: You projected 10% growth but achieved 12.4%. How much of this was due to the ES-Tec acquisition versus organic growth?
A: Around 4% originated from ES-Tec, while the remainder was organic. The improvements were widespread — across automotive, industrial heavy machinery, aerospace, and education sectors. All verticals and service lines performed well. Deal signings in the last three to three-and-a-half months have been the strongest we’ve experienced, bolstering confidence in maintaining consistent double-digit growth ahead.
Q: Margins increased to 16%. What facilitated this, and what potential do you see for further growth?
A: With improving volumes and returns to scale, margins should revert to previous levels. Our target is a run rate exceeding 18% by the January-March quarter of 2027 (Q4FY27). We are consistently applying operational strategies to leverage scale.
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Q: What is the long-term outlook for revenues and margins?
A: Our primary goal is to reach a $1 billion revenue mark in the next couple of years, while remaining committed to margins of 20–21%. The growth rates observed post-pandemic are anticipated to return, driven by scale and a stronger position with key customers.
Q: Are previous challenges like tariffs and automotive weaknesses behind us? What risks do you face?
A: Not completely. There are still risks, including geopolitical factors affecting commodities such as aluminum and plastics. However, product-driven sectors like automotive and construction equipment are beginning to increase investments after a lull, which is generating current momentum and deal wins.
Q: What is the forecast for non-automotive segments like aerospace?
A: The aerospace and commercial truck sectors will continue to expand. However, automotive opportunities dominate at present due to pent-up investments. Over the medium term, we foresee a distribution of about 70% automotive and 30% non-automotive, although this may take two to three years.
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