Tata Technologies reported a 3.2% sequential revenue increase in Q3 FY26, driven by a 4.7% growth in Services. The company anticipates over 10% sequential revenue growth in Q4 and double-digit growth in FY27. Despite some headwinds, the company is optimistic about future performance, bolstered by key client relationships, strategic acquisitions, and expansion in the aerospace sector.
Q3 FY26 Financial Highlights
Tata Technologies reported positive financial results for the third quarter of fiscal year 2026:
- Sequential revenue growth of 3.2%, reaching ₹1,366 crores.
- Services business revenue increased by 4.7% sequentially.
- Aerospace and IHM verticals delivered 10% QoQ revenue growth in USD terms.
- Products business grew 30% sequentially within the Technology Solutions segment.
Key Growth Drivers
Several factors contributed to the company’s performance in Q3 FY26:
- Sustained demand in Aerospace and IHM verticals.
- Successful closure of six large deals across automotive, industrial, software-led engineering, and education.
- Strategic full vehicle program secured with a global automotive OEM.
Strategic Developments
Tata Technologies has focused on strengthening its capabilities and expanding its market presence:
- Acquisition of ES-Tec, enhancing capabilities in Embedded and Software-Defined Vehicle engineering.
- Joint venture with BMW continues to scale, now exceeding 1,500 engineers, with a 37% sequential increase in profit share.
- Expanded presence in the aerospace sector, with eight engineers certified as Design Organisation Approval Technical Approvers for Airbus.
Future Outlook
Tata Technologies anticipates strong growth in the coming quarters:
- Expects sequential revenue growth in excess of 10% in Q4.
- Targets double-digit growth in FY27.
- Aerospace business expected to reach close to $40 million in FY26.
Operational Metrics
- Total headcount reached 12,580 associates.
- Trailing 12-month attrition rate increased slightly to 15.8%.
Commentary on Automotive Business
Tata Technologies expects the automotive sector to recover and contribute to future growth, citing improvements in the overall market environment and the strategic partnerships with key customers like JLR and Tata Motors. The company is also focusing on embedded systems and software to mitigate risks associated with specific programs.
Source: BSE
