Tata Technologies reported strong financial performance for the second quarter of fiscal year 2027, with revenues from operations increasing by 22.2% year-on-year to $178 million in constant currency. The company maintained a resilient operating EBITDA margin of 16.1% and expressed confidence in delivering strong double-digit growth for the full year. Key growth drivers included increased demand in the automotive and aerospace sectors, alongside strategic program ramp-ups.
Strong Q2 Performance Driven by Key Sectors
Tata Technologies announced its financial results for the second quarter of fiscal year 2027, highlighting robust growth and operational resilience. Revenues from operations surged by 22.2% year-on-year in constant currency, reaching $178 million. This growth was underpinned by a solid performance in the services segment, which grew 4.3% sequentially to $142 million, contributing approximately 80% of the total revenue.
Resilient Margins and Strategic Investments
Despite absorbing annual salary increments, which represented a headwind of over 100 basis points, the company’s operating EBITDA margins remained steady at 16.1%. This resilience is attributed to disciplined execution and the strength of its operating model. Tata Technologies also continued to invest in future growth, adding approximately 300 associates to support strategic program ramp-ups and enhance key capabilities. Employee attrition saw a sequential reduction of 70 basis points to 15.6%.
Industry Shift and Growth Outlook
The company highlighted a structural shift in product development, particularly in the automotive industry, with OEMs increasingly outsourcing engineering and product development. Tata Technologies’ strategy focuses on becoming a strategic product realization partner, capable of managing complex engineering outcomes. A significant win during the quarter was a $138 million full vehicle engineering program with a leading European luxury automotive OEM, spanning two vehicle programs.
Looking ahead, Tata Technologies remains confident in achieving strong double-digit growth for the full fiscal year, supported by healthy demand, ongoing program ramp-ups, and a robust pipeline conversion. Aerospace is emerging as a significant second growth engine for the company, with demand remaining strong.
Financial Highlights
Total revenue from operations increased 2.1% sequentially to INR 1,699 crores. Operating EBITDA margin remained steady at 16.1%, with EBITDA growing 2.2% quarter-on-quarter and 31.5% year-on-year to INR 273 crores. The company’s net cash position stood at approximately INR 330 crores at the end of Q2.
Operational Metrics
Total headcount increased by 316 employees (2.5%) sequentially to 12,895 associates. Voluntary attrition improved to 15.6%. The company is focusing on building a future-ready workforce with enhanced capabilities in areas such as embedded software, software-defined vehicles, AI, cybersecurity, and digital engineering.
Source: BSE
