Tata Technologies (TATATECH) Q2 25/26 earnings summary

Executive summary

• Achieved 6.4% sequential revenue growth to INR 1,323 crore, with services up 5.1% and technology solutions up 10.6%.

• Returned to growth in Q2 FY26 with margin discipline, strategic advances in Europe, and innovation initiatives.

• Board approved unaudited financial results for Q2 and H1 FY26, with statutory auditors issuing an unmodified opinion.

• Closed three large deals, including a major automotive data harmonization project and first direct deal with a German OEM.

• Signed a definitive agreement to acquire ES-Tec/Es-Tec GmbH, enhancing European presence and automotive engineering capabilities.

Financial highlights

• Total operating revenue for Q2 FY26 was ₹13,233 million (INR 1,323 crore), up 6.4% QoQ and 2.1% YoY; in USD, $150.9 million, up 4.5% QoQ in constant currency.

• EBITDA margin reported at 15.7%, adjusted to 16.4% excluding one-off cyber incident expenses; EBIT grew 4.6% QoQ to INR 190 crore.

• Net income/PAT for Q2 FY26 was ₹165.50 crore, down 2.8–3% QoQ but up 5–5.1% YoY; net income margin at 12.5%.

• EPS (diluted) at 4.08 for Q2 FY26, down 2.8% QoQ, up 5.2% YoY.

• Net cash position at $123 million, down from $159 million in June; company remains debt-free.

Outlook and guidance

• Cautiously optimistic for H2 FY26, expecting Q3 moderation due to temporary headwinds and a strong Q4 recovery.

• Large deal wins and improving demand signals provide visibility for future growth.

• No specific revenue or margin guidance provided.

• Acquisition of Es-Tec GmbH expected to close by December 31, 2025, pending regulatory approvals.