Transcript of the conference call on the audited financial results for the quarter and year ended March 31, 2026.
TATATECH · price
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Tata Technologies delivered a strong Q4 FY26 with 12.4% total revenue growth (12% QoQ in constant currency), exceeding its 10% guidance. Services revenue grew 15% QoQ to INR 1,220 crores, while EBITDA margin improved to 16% from 14% in Q3. The company won multiple large deals including a Full-Vehicle Program with a Japanese OEM (marking entry into the Japanese market), a strategic PLM engagement with a European luxury OEM, and expanded partnerships with BMW JV and Volkswagen. ES-Tec contributed approximately $9 million in Q4. The company generated free cash flow of INR 742 crores (87% EBITDA-to-FCF conversion) and ended with a net cash position of INR 1,188 crores. Management guided for double-digit organic revenue growth in FY27 and expects to exit the year with operating margins exceeding 18%, driven by operating leverage and AI-driven productivity gains.
The strong Q4 performance and robust deal wins signal a clear inflection point after a softer first half. The management's confidence in achieving 18% margin exit rate and double-digit growth in FY27, supported by a diversified pipeline of multi-year full-vehicle programs, suggests improved earnings visibility for shareholders.