Tata Technologies Q2 FY27 results: net profit up 3.6% to ₹171.44 crore, revenue up 28.4%

How did Tata Technologies perform in Q2 FY27?

Tata Technologies reported consolidated revenue of ₹1,699 crore for the quarter ended 30 September 2026, up 28.4% from ₹1,323 crore in Q2 FY26 and 2.1% from ₹1,665 crore in Q1 FY27. EBITDA was ₹273.26 crore, up 31.5% year on year from ₹207.82 crore and 2.2% from ₹267.44 crore in the previous quarter. The EBITDA margin was 16.1%, against 15.7% a year earlier and unchanged from Q1 FY27.

Profit after tax was ₹171.44 crore, against ₹165.50 crore in Q2 FY26 and ₹180.75 crore in Q1 FY27. Basic EPS was ₹4.22, compared with ₹4.08 a year earlier and ₹4.45 in the previous quarter. The net profit margin was 10.1%, down 2.4 percentage points from 12.5% a year earlier and 0.8 percentage points from 10.9%. On a standalone basis, revenue was ₹912.16 crore, up 14.5%, and profit after tax was ₹145.76 crore against ₹133.30 crore.

What changed in Tata Technologies' costs and profit?

Total expenses were ₹1,500 crore, up 30.3% from ₹1,151 crore in Q2 FY26 and ₹40.28 crore from ₹1,459 crore in Q1 FY27. Employee cost was the largest line at ₹823.31 crore, up ₹173.16 crore or 26.6% year on year and ₹8.19 crore from the previous quarter. Other expenses were ₹602.23 crore, up ₹136.87 crore or 29.4% year on year and ₹20.16 crore sequentially.

Finance costs rose to ₹19.85 crore from ₹4.57 crore a year earlier, a difference of ₹15.28 crore, and were up ₹4.38 crore from ₹15.47 crore in Q1 FY27. Depreciation was ₹54.27 crore, up ₹23.38 crore or 75.7% from a year earlier and ₹7.55 crore from the previous quarter. There was no exceptional item in the quarter.

Other income fell to ₹31.15 crore from ₹48.20 crore in Q2 FY26, a difference of ₹17.05 crore, and was down ₹5.77 crore from ₹36.92 crore in Q1 FY27. Tax was ₹70.28 crore, up ₹9.91 crore from ₹60.37 crore a year earlier and down ₹0.67 crore from ₹70.95 crore. Profit before tax was ₹230.29 crore, up ₹9.73 crore or 4.4% year on year and down ₹11.88 crore or 4.9% sequentially.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹3,363.43 crore, up 31.0% from ₹2,567.62 crore in H1 FY26, a difference of ₹795.81 crore. Total income was ₹3,431.50 crore against ₹2,679.39 crore, up 28.1%, while profit before tax rose 5.4% to ₹472.46 crore from ₹448.31 crore.

Profit after tax for the half year was ₹352.19 crore, up 4.9% from ₹335.78 crore in H1 FY26, a difference of ₹16.41 crore. EPS was ₹8.67 against ₹8.27, up ₹0.40 or 4.8%.

What do the balance sheet and cash flow show?

As at 30 September 2026, total assets were ₹8,570.63 crore against ₹8,953.46 crore at 31 March 2026, and total equity was ₹3,832.59 crore against ₹3,923.37 crore. Borrowings were ₹713.33 crore, up from ₹665.56 crore, while cash fell to ₹539.65 crore from ₹682.34 crore. Trade receivables stood at ₹1,421.46 crore against ₹1,186.86 crore, and trade payables were ₹670.92 crore against ₹581.36 crore.

For H1 FY27, operating cash flow was negative ₹316.00 crore against positive ₹38.03 crore in H1 FY26. Investing cash flow was ₹663.90 crore against ₹53.91 crore, financing cash flow was negative ₹496.67 crore against negative ₹507.62 crore, and capital expenditure was ₹69.91 crore against ₹14.30 crore.

How has Tata Technologies done over the last 8 quarters?

Revenue has risen year on year in each of the last five quarters. Over the reported series, revenue was lowest at ₹1,244.29 crore in Q1 FY26 and highest at ₹1,698.80 crore in Q2 FY27, while the EBITDA margin ranged from 14.1% in Q3 FY26 to 18.2% in Q4 FY25.

The margin stood at 16.1% in Q2 FY27, unchanged from Q1 FY27 and above the 15.7% recorded in Q2 FY26. Profit after tax was ₹171.44 crore, down from ₹180.75 crore in Q1 FY27 and below the ₹204.17 crore recorded in Q4 FY26.

Which businesses drove the quarter?

The Services segment reported revenue of ₹1,355.65 crore, up 33.8% from ₹1,012.82 crore in Q2 FY26, and EBIT of ₹408.37 crore against ₹303.67 crore. The segment's EBIT margin was 30.1%.

The Technology solutions segment reported revenue of ₹343.15 crore, up 10.5% from ₹310.51 crore a year earlier, and EBIT of ₹65.41 crore against ₹56.01 crore. Its EBIT margin was 19.1%.

What else did the company announce?

The board of Tata Technologies met on 14 October 2026 and approved the unaudited standalone and consolidated financial results with the limited review report for the quarter and half year ended 30 September 2026. The meeting ran from 9:30 a.m. to 3:46 p.m., and the results were made available on the company website.

A same-day filing on 14 October 2026 carried the investor and analyst presentation for the quarter and half year ended 30 September 2026. It reported total operating revenue of ₹16,988 million, up 28.4% year on year, and operating EBITDA of ₹2,733 million, up 31.5%. The same filing recorded headcount of 12,895, against 12,579 in Q1 FY27 and 12,402 in Q2 FY26, and DSO of 102 days.

What did Tata Technologies' management say?

Management reiterated strong double-digit consolidated revenue growth for FY27, supported by continued program ramp-ups and healthy pipeline conversion. The company said sequential margin improvement is expected from Q3 despite a typically soft third quarter, and that 18% and 20% remain the medium-term North Star margins rather than a fresh Q4 commitment. Management also said the Q2 margin absorbed a wage hike headwind of more than 100 basis points.

Warren Harris said five large deals were secured in Q2, including a landmark US$138 million full vehicle engineering programme with a leading European luxury automotive OEM spanning two vehicles. He said approximately 1,000 associates are deploying AI agents across engineering, and described aerospace as an emerging second growth engine built on the Airbus relationship. Management flagged Germany OEM restructuring as a pressure on ES-Tec volumes, additional softness in Q3, near-term pressure on education from slower infrastructure readiness at customer sites, and unbilled DSO of up to 39 days as timing-related.

On the balance sheet, management said net cash was INR 330 crore after an INR 475 crore dividend payout. Harris said the company aims to become a strategic product realization partner rather than only a large engineering service provider: "Our ambition is not just to become a large engineering service provider. It is to become a strategic product realization partner capable of owning increasingly complex engineering and product development outcomes for the world's leading OEMs."

How did Tata Technologies shares react?

The filing appeared after market hours on 14 October 2026. The stock was up 1.5% five minutes after the filing, then down 0.8% after 15 minutes and down 1.5% after 30 minutes. It closed the reaction session down 1.0% from the previous close of ₹747.25.

Earlier reaction-day moves were mixed: down 1.8% on 17 July 2026, up 6.0% on 4 May 2026, down 1.1% on 17 October 2025, up 2.6% on 14 July 2025, up 1.7% on 25 April 2025, down 2.1% on 21 January 2025, down 0.1% on 28 October 2024 and down 1.1% on 18 July 2024.

How did other IT Enabled Services companies do?

Twenty-eight other IT Enabled Services companies had filed this quarter by 4 November 2026, with a median revenue growth of 21.9%. Of the other companies, 18 grew revenue more slowly than Tata Technologies and 10 grew faster. Nineteen of the 25 peers for which profit was compared reported higher profit.