Tata Technologies (TATATECH) Q4 25/26 earnings summary

Executive summary

• Q4 FY26 marked a strong inflection point with 15.1% QoQ and 22.3% YoY revenue growth, driven by broad-based client demand, strategic wins across geographies, and significant margin expansion, with EBITDA margin up 190bps QoQ and EBIT margin up 140bps QoQ.

• Growth was broad-based across automotive, aerospace, industrial heavy machinery, and technology solutions, with renewed momentum from non-anchor customers and new multi-year program wins.

• Strategic investments in AI and delivery capacity during downturns are now yielding improved economics and operational leverage.

• Board approved audited standalone and consolidated financial results for Q4 and FY26, with auditors issuing an unmodified opinion.

• Order book visibility improved, supporting double-digit organic growth and sustainable margin expansion in FY27.

Financial highlights

• Q4 services revenue grew 15% QoQ and 11.9% in constant currency to INR 1,220 crore; total revenue up 15.1% reported and 12.4% in constant currency to INR 1,572 crore.

• Operating EBITDA was ₹2,521 million (16.0% margin), up 30.7% QoQ; EBIT at ₹2,204 million (14.0% margin), up 27.8% QoQ.

• Net income for Q4 was INR 163 crore, with profit before tax up 21.6% sequentially to INR 272 crore (excluding a one-time exceptional gain from provision reversal).

• Consolidated revenue from operations for FY26 was ₹5,505.57 crore, up from ₹5,168.45 crore in FY25; consolidated net profit for FY26 was ₹546.59 crore.

• Free cash flow for FY26 was INR 742 crore, with an EBITDA to FCF conversion of 87%.

• Final dividend of INR 8.35/share and special dividend of INR 3.35/share proposed, totaling INR 11.7/share for FY26.

Outlook and guidance

• Double-digit organic revenue growth expected for FY27 in constant currency, with operating margin run rate targeted to exceed 18% by year-end.

• Growth expected to be consistent across quarters, with a potentially stronger second half.

• Guidance is based on current order book and pipeline, not requiring further demand improvement.

• Dividend payout of ₹11.70 per share proposed, with a cash outflow of approximately ₹475 crore if approved.