Tata Technologies (TATATECH) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue was ₹1,698.80 crore, up 28.4% YoY in reported INR terms and 22.2% in constant currency; operating EBITDA margin was 16.1%.

• Five large deals were secured, including a $138 million full-vehicle program; strong double-digit FY27 growth guidance was reiterated.

Financial highlights

• Operating revenue was ₹16,988 million, up 28.4% YoY and 2.1% QoQ; organic YoY growth was 25.1%.

• Services revenue was ₹13,557 million, up 33.9% YoY and 4.5% QoQ; organic YoY growth was 29.5%.

• Operating EBITDA was ₹2,733 million, up 31.5% YoY and 2.2% QoQ; the 16.1% margin faced a 100 bps salary-increment headwind.

• EBIT was ₹2,387 million, up 25.3% YoY; net income was ₹171.44 crore versus ₹165.50 crore a year earlier.

• H1 revenue was ₹3,363.43 crore versus ₹2,567.62 crore; H1 net profit was ₹352.19 crore versus ₹335.78 crore.

Outlook and guidance

• FY27 outlook remains for strong double-digit consolidated revenue growth, supported by demand, program ramp-ups and pipeline conversion.

• Sequential margin improvement is expected in H2, including Q3; management expects to finish FY27 strongly.

• Large program ramp-ups are expected to contribute more meaningfully in H2; the $138 million program is ramping and supports the order book for next year and beyond.

• Long-term margin “North Star” targets remain 18% and 20%.