Tata Technologies
Tata Technologies
Information TechnologyKey Fundamentals
SmallcapIT Enabled ServicesInformation TechnologyTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
1- Company has been maintaining a healthy dividend payout of 72.3%
Weaknesses
1- Stock is trading at 7.23 times its book value
Growth Rate
AI Analysis — Bull vs Bear
Tata Technologies has a market capitalisation of about ₹28,667 crore and trades at 52.3x earnings and 9.03x book value. Revenue has grown at an 18% CAGR over 5 years and 15% in the trailing twelve months. Profit has shrunk 5% on a TTM basis and 1% annually over 3 years, and ROE has slipped from a 5-year average of 20% to 16% last year, while the company pays out 72.3% of profits for a 1.63% dividend yield.
- Over the last 5 years, revenue grew at an 18% CAGR and profit at a 21% CAGR, so the business has scaled profitably over a full cycle.
- TTM sales growth of 15% is nearly double the 3-year sales CAGR of 8%, which points to demand picking up again after a slower period.
- ROE has held at 19% (3-year average) and 20% (5-year average), which suggests steady returns on shareholder capital in an asset-light engineering services model.
- The company pays out 72.3% of profits as dividends while still earning a 16% ROE last year, which suggests it needs little capital to grow and generates healthy cash.
- A dividend yield of 1.63% gives shareholders a cash return even at a P/E of 52.3, which is above what many high-multiple IT and ER&D names yield.
- At a market cap of about ₹28,667 crore, the company has the scale and Tata group backing to compete for large engineering R&D and digital-engineering contracts, especially in automotive and aerospace.
- The P/E of 52.3 prices in strong growth, but profit fell 5% in the TTM period and has declined at a 1% CAGR over 3 years, so the valuation and recent earnings are moving in opposite directions.
- TTM revenue grew 15% while profit fell 5%, which points to margin compression. That could come from pricing pressure, wage costs or a less favourable project mix.
- Price-to-book is 9.03 (another source puts it at 7.27). Either way the stock trades at a steep premium to its net assets, leaving little room if returns weaken.
- ROE fell to 16% last year from a 5-year average of 20% and a 3-year average of 19%, so capital efficiency is getting worse.
- The 3-year sales CAGR of 8% is well below the 5-year figure of 18%, so the strongest growth years may be behind the company unless the TTM pickup lasts.
- At a P/E of 52.3 the earnings yield is only about 1.9%, which leaves little margin of safety if growth disappoints.
- The stock returned only 5% over the past year, a muted gain given its premium multiples and the pressure on profits.
- The 72.3% payout ratio leaves little profit to reinvest. If growth needs more investment or acquisitions, the dividend could come under pressure.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Goldman Sachs maintains 'Sell' rating Sep 5
Goldman says growth is slowing relative to peers and sees little reason for a sustained valuation premium. It points to heavy exposure to lower-growth, lower-margin body engineering and mechanical work, and limited presence in higher-margin CASE.
- FY26 net profit falls 19% Sep 5
FY26 consolidated net profit fell to ₹546.59 crore from ₹676.95 crore in FY25. Revenue grew only about 6.5%, to ₹5,505.57 crore from ₹5,168.45 crore.
- Agratas group revenue down 58% Sep 24
Total transactions between Agratas and all Tata Technologies entities fell to ₹20.67 crore in FY26 from ₹49 crore in FY25. Work billed through the European unit dropped from ₹41.2 crore to ₹5.01 crore.
- China link raises regulatory risk Sep 24
The Shanghai unit supplied ₹7.34 crore of services to Agratas in FY26, up from nil in FY25. Beijing is tightening limits on technology transfers to foreign companies, and Mint's questions about the nature of the work went unanswered.
- Q4 revenue up 22%, profit up 8% Sep 5
Q4 consolidated revenue rose to ₹1,572.22 crore from ₹1,285.65 crore a year earlier. Net profit rose 8% to ₹204.17 crore from ₹188.87 crore.
- Stock up about 58% from 52-week low Sep 5
The stock closed at ₹799.85 on Sep 5, about 58% above its 52-week low of ₹507.50 hit on Mar 30, 2026. That points to a strong recovery in investor sentiment.
- Goldman flags upside catalysts Sep 5
Goldman sees possible triggers in the scarcity of software deals at JLR's competitors, the eventual ramp-down of the VinFast account, and more automotive R&D spending moving to software.
- Agratas-JLR battery deal adds visibility Sep 24
Tata Technologies is a development partner to Agratas, which has a ₹5,000 crore, seven-year contract to supply EV batteries to JLR from FY27. Agratas is also building a 40GWh plant in the UK and a 20GWh plant in India, which could bring more engineering work.
- Former CEO sells ₹165 crore stake Sep 5
Former CEO Patrick McGoldrick sold 21 lakh shares (0.52%) at ₹785 each through BSE block deals, cutting his holding to 0.62% from 1.13%. Kotak MF (7.8 lakh shares), ICICI Pru MF (6 lakh), 360 ONE (4 lakh) and Carnelian (3.2 lakh) bought all of them.
- First-ever Investor Day on Nov 19 Sep 7
Tata Technologies will hold its first Investor Day on November 19, 2026, in Mumbai. Registration closes October 30, 2026.
- Axis Capital conference and investor meetings Sep 11
Management met fund managers in one-on-one and group sessions at Axis Capital's Consumer & Tech Conference in Mumbai on September 11, 2026. The company said no unpublished price-sensitive information was shared.
TL;DR: Tata Technologies has rebounded about 58% from its March 2026 low, helped by a strong Q4 (revenue up 22%, profit up 8%), and domestic mutual funds fully absorbed the former CEO's ₹165 crore stake sale. Risks remain: FY26 profit fell 19%, Goldman keeps a 'Sell' rating over weak exposure to software and CASE work, Agratas-related revenue more than halved, and the new China link adds regulatory risk. Near-term results are improving, but whether growth holds depends on shifting the business mix. The November 19 Investor Day is the key event to watch for a software-led growth plan.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,258 | 1,269 | 1,289 | 1,301 | 1,269 | 1,296 | 1,317 | 1,286 | 1,244 | 1,323 | 1,366 | 1,572 | 1,665 |
| Expenses | 1,007 | 1,055 | 1,053 | 1,061 | 1,038 | 1,061 | 1,083 | 1,052 | 1,044 | 1,116 | 1,173 | 1,320 | 1,397 |
| Operating Profit | 250 | 214 | 237 | 240 | 231 | 236 | 234 | 233 | 200 | 208 | 193 | 252 | 267 |
| OPM % | 20% | 17% | 18% | 18% | 18% | 18% | 18% | 18% | 16% | 16% | 14% | 16% | 16% |
| Other Income | 31 | 30 | 31 | 24 | 23 | 16 | 28 | 61 | 68 | 54 | -125 | 94 | 46 |
| Interest | 5 | 5 | 5 | 4 | 5 | 5 | 6 | 5 | 5 | 5 | 9 | 16 | 15 |
| Depreciation | 24 | 26 | 27 | 29 | 30 | 30 | 30 | 31 | 31 | 31 | 36 | 47 | 47 |
| PBT | 253 | 213 | 235 | 231 | 220 | 217 | 226 | 258 | 233 | 226 | 23 | 283 | 252 |
| Tax % | 24% | 25% | 28% | 32% | 26% | 28% | 25% | 27% | 27% | 27% | 71% | 28% | 28% |
| Net Profit | 192 | 160 | 170 | 157 | 162 | 157 | 169 | 189 | 170 | 166 | 7 | 204 | 181 |
| EPS in Rs | 4.72 | 3.95 | 4.2 | 3.88 | 3.99 | 3.88 | 4.16 | 4.66 | 4.2 | 4.08 | 0.16 | 5.03 | 4.45 |
Profit & Loss
| Particulars | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|
| Sales | 2,942 | 2,852 | 2,381 | 3,530 | 4,414 | 5,117 | 5,168 | 5,506 | 5,926 |
| Expenses | 2,437 | 2,382 | 1,995 | 2,884 | 3,593 | 4,176 | 4,234 | 4,653 | 5,006 |
| Operating Profit | 505 | 470 | 386 | 646 | 821 | 941 | 934 | 853 | 920 |
| OPM % | 17% | 16% | 16% | 18% | 19% | 18% | 18% | 15% | 16% |
| Other Income | 36 | 36 | 39 | 49 | 88 | 116 | 128 | 91 | 69 |
| Interest | 1 | 16 | 18 | 22 | 18 | 19 | 20 | 34 | 45 |
| Depreciation | 69 | 99 | 92 | 86 | 95 | 106 | 121 | 145 | 160 |
| PBT | 471 | 392 | 315 | 587 | 796 | 932 | 921 | 765 | 784 |
| Tax % | 25% | 36% | 24% | 26% | 22% | 27% | 27% | 29% | — |
| Net Profit | 353 | 252 | 239 | 437 | 624 | 679 | 677 | 547 | 557 |
| EPS in Rs | — | — | — | — | 15.38 | 16.75 | 16.69 | 13.46 | 13.72 |
| Div. Payout % | 18% | 66% | 0% | 0% | 0% | 60% | 70% | 87% | — |
Balance Sheet
| Particulars | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|
| Equity Capital | 42 | 42 | 42 | 42 | 81 | 81 | 81 | 81 |
| Reserves | 1,715 | 1,811 | 2,100 | 2,238 | 2,908 | 3,140 | 3,498 | 3,842 |
| Borrowings | 0 | 258 | 266 | 261 | 255 | 257 | 237 | 938 |
| Other Liabilities | 512 | 462 | 1,164 | 1,676 | 1,957 | 2,100 | 2,848 | 3,999 |
| Total Liabilities | 2,269 | 2,573 | 3,573 | 4,218 | 5,201 | 5,578 | 6,664 | 8,860 |
| Fixed Assets | 819 | 1,119 | 1,090 | 1,068 | 1,095 | 1,151 | 1,130 | 2,055 |
| CWIP | 25 | 0 | 0 | 0 | 3 | 0 | 0 | 15 |
| Investments | 39 | 36 | 497 | 528 | 30 | 150 | 616 | 823 |
| Other Assets | 1,386 | 1,417 | 1,986 | 2,622 | 4,074 | 4,277 | 4,918 | 5,966 |
| Total Assets | 2,269 | 2,573 | 3,573 | 4,218 | 5,201 | 5,578 | 6,664 | 8,860 |
Cash Flow
| Particulars | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|
| Operating | 369 | 267 | 1,113 | -39 | 401 | 294 | 699 | 776 |
| Investing | -19 | -3 | -664 | 70 | -440 | 400 | -65 | -776 |
| Financing | -221 | -261 | -44 | -44 | -347 | -557 | -486 | 16 |
| Net Cash Flow | 129 | 4 | 405 | -13 | -385 | 137 | 148 | 15 |
| Free Cash Flow | 320 | 214 | 1,099 | -102 | 336 | 204 | 669 | 743 |
| CFO/OP | 108 | 85 | 317 | 14 | 78 | 63 | 108 | 112 |
Ratios
| Particulars | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|
| Debtor Days | 71 | 93 | 91 | 79 | 91 | 82 | 71 | 79 |
| Inventory Days | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Days Payable | 312 | — | — | — | — | — | — | — |
| Cash Conversion Cycle | -241 | 93 | 91 | 79 | 91 | 82 | 71 | 79 |
| Working Capital Days | 55 | 61 | -12 | -12 | 66 | 56 | 34 | 33 |
| ROCE % | — | 22% | 15% | 25% | 28% | 28% | 26% | 21% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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65 extracted metrics + investor summaries across FY19–FY27.
Documents
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Company Information
Incorporated in 1994, Tata Technologies Limited is a global engineering services company offering Product Development and Digital Solutions.[1]
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