4 hours ago
Shares of Tata Technologies Ltd., the first Tata Group IPO in two decades, are trading near the day's high at ₹712.35, up 3%, following the company's March quarter results, where topline declined marginally from last year to ₹1,286 crore. EBITDA also fell 2% year-on-year to ₹233.5 crore, while the margin for the quarter narrowed to 18.2%.
In an interaction with CNBC-TV18, Tata Technologies Managing Director and CEO Warren Harris said that the macroeconomic environment remains uncertain, but he is hopeful that the tariff situation will gain some clarity over the next month.
Harris added that the company's performance in FY26 will depend on the broader macroeconomic conditions and the extent of clarity achieved.
"At the start of the year, we were planning for double-digit growth in FY26, but we are cognizant of the macro headwinds. Our priority is to protect margins," he said.
Out of the 15 analysts that have coverage on Tata Tech, 11 of them have a 'Sell' recommendation, while four of them have a 'Buy' rating. Kotak has the lowest target on the Street at ₹500.
Brokerage firm Kotak Institutional Equities has retained its 'Sell' rating on Tata Technologies, lowering the price target to ₹500 from ₹550 earlier.
Kotak expects muted performance in services revenues in FY26E due to a weak demand environment and moderating revenue growth at anchor clients. The brokerage has slashed its FY26–28 earnings per share estimates by 4–7% on account of tepid operating performance in the services segment.
Goldman Sachs has a 'Sell' rating on Tata Technologies with a price target of ₹550 per share.
The brokerage said that Tata Tech's revenue, EBITDA, and profit were down 4%, 7%, and up 8% versus Bloomberg consensus estimates.
The profit beat was mostly driven by higher other income due to higher FX gains, investment gains, and interest income.
Management said that while client conversations in Q4 had suggested a pickup in automotive ER&D spending from Q1FY26, the recent US tariff announcements have caused a pause in activity.
However, management expects pent-up investment appetite to return by Q2FY26 or the second half of FY26.
Meanwhile, the BMW joint venture is scaling up better than initially expected.
JPMorgan has an 'Underweight' rating on Tata Tech, with a price target of Rs 630.
Management highlighted that the recent tariff announcements have created uncertainty for global OEMs, leading to delays in client decision-making, deal closures, and ramp-ups.
It expects a soft start to FY26, with growth likely recovering only in the second half.
On the positive side, the BMW joint venture is ramping up ahead of schedule.
Shares of Tata Technologies are trading 1.64% higher at ₹704.60 today. The stock had corrected over 38% from its 52-week high of ₹1,136.
