Tata Technologies (TATATECH) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 revenue reached $175.4M (₹16,646 million), up 25.2%–33.8% YoY and 4.3%–5.9% QoQ, with strong deal momentum and major wins including a $100M multi-year engagement with Tenneco.

• Services revenue was $136.6M (₹12,969 million, 78% of total), up 24.4%–34.6% YoY and 4.3%–6.3% QoQ; technology solutions revenue was $38.8M (₹367.71 crore), up 27.9%–31% YoY and 4.2%–4.3% QoQ.

• Diversification strategy delivered: automotive non-anchor revenue up 6.7% QoQ and 56.3% YoY; aerospace revenue up 6.4% QoQ and 38.1% YoY.

• Europe, especially Germany, and India are key growth engines, with Q1 revenue from Europe at $67.9M, up 10.1% QoQ.

• Strategic investments in AI, operational efficiency, and portfolio diversification are positioning the business for continued double-digit organic revenue growth.

Financial highlights

• Aggregate revenues grew 5.9% QoQ in INR, 4.3% in constant currency to INR 1,665 crores (₹16,646 million).

• EBITDA was INR 267 crores (₹2,674 million), up 6.1% QoQ and 33.6% YoY; EBITDA margin at 16.1%.

• Operating profit (EBIT) increased 8.3% QoQ to INR 239 crores (₹2,386 million); EBIT margin at 14.3%.

• Profit after tax for Q1 FY27 was ₹180.75 crore, up 11.3% QoQ; EPS (diluted) at ₹4.45.

• Net cash position at INR 880 crores; DSO stable at 97 days; free cash flow for the quarter was ₹2,479 million.

Outlook and guidance

• Management expects strong double-digit organic revenue growth for FY27, with acceleration in H2, supported by AI investments and operational efficiency.

• Margin expansion targeted through scale, productivity, AI-led efficiency, and disciplined cost management.

• Dividend of ₹11.70 per share (₹475.08 crore) for FY26 was approved and paid in July 2026.