He also laid out a plan to scale the business to $1 billion in revenue, with margins moving towards 20–21% over the next couple of years. As investments pick up across automotive and engineering, Tata Technologies aims to strengthen its position through deeper customer engagement and turnkey offerings.
Watch the full conversation here or scroll for edited excerpts.
In the January-March quarter of 2026 (Q4FY26), Tata Technologies’ net profit rose 8.1% to ₹204 crore, while revenue grew 22.3% to ₹1,572.2 crore. The earnings before interest, taxes, depreciation and amortization (EBITDA) grew 8% year-on-year to ₹252 crore, but EBITDA margin declined to 16.1% from 18.2% a year ago. The Q4 margins excluded a one-time exceptional reversal related to the implementation of the new labor code.
The Pune-based product engineering company in the auto and aerospace sector and a subsidiary of Tata Motors has a market capitalization of around ₹26,027.92 crore. Its shares have declined nearly 4% over the past year.
These are edited excerpts from the interview.Q: You guided for 10% growth but delivered 12.4%. How much was driven by the ES-Tec acquisition vs organic growth?
A: About 4% came from ES-Tec, while the rest was organic. The improvement was broad-based — across automotive, industrial heavy machinery, aerospace, and education. All verticals and service lines performed well. Deal signings over the last three to three-and-a-half months have been the strongest we have seen, reinforcing confidence in consistent double-digit growth going forward.
Q: Margins expanded to 16%. What drove this, and how much upside remains?
A: As volumes improve and scale returns, margins should move back toward prior levels. We are targeting a run rate of over 18% by the January-March quarter of 2027 (Q4FY27). We continue to apply operating levers while benefiting from scale.
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Q: What is the long-term guidance in terms of revenues and margins?
A: Our north star is to become a $1 billion company in the next couple of years. We remain committed to margins of 20–21%. Growth rates seen post-pandemic are expected to return, supported by scale and stronger positioning with strategic customers.
Q: Are earlier headwinds like tariffs and auto weakness behind us? What are the risks?
A: Not entirely. Risks remain, including geopolitical issues impacting commodities like aluminum and plastics. However, product-led industries such as automotive and construction equipment are resuming investments after a pause, which is driving current momentum and deal wins.
Q: What is the outlook for non-auto segments like aerospace?
A: Aerospace and commercial trucks will continue to grow. However, automotive opportunities are currently dominant due to pent-up investments. Over the medium term, we expect a mix of about 70% automotive and 30% non-automotive, though this may take two to three years.
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