Tata Technologies Limited has informed the Exchange about Transcript of the conference call on financial results for the quarter ended June 30, 2025
TATATECH · price
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Tata Technologies reported a soft Q1 FY26 with revenue at INR 1,244 crore, down 3.2% sequentially (4.6% in constant currency), as US tariff concerns from April 2 caused customers in North America to pause product investments. The Services segment (77% of revenue) declined 5.9% QoQ to INR 964 crore due to delayed ramp-ups of large deals, while Technology Solutions grew 7.3% QoQ on a rebound in the education vertical. Aerospace was a standout with 13% sequential revenue growth. EBITDA margin contracted 210 basis points to 16.1%, primarily from operating deleverage, pushing PAT down 9.8% QoQ to INR 170 crore. Management closed six large deals in the quarter (four above $10 million), and the order book is stronger year-on-year. The company remains debt-free with net cash of $159 million, FCF of INR 190 crore, and reaffirmed its long-term goal of a 20% margin band.
Near-term results disappointed on both revenue and margins, but management attributes the weakness to short-term macro shocks (tariffs) rather than structural issues. The strong order pipeline, deal closures, and reaffirmed commitment from anchor customers Tata Motors and JLR support the case for a sequential recovery in Q2 and stronger H2 FY26, though full-year double-digit growth target is now uncertain and dependent on Q2 performance.