Mumbai — Tata Technologies reported a 5.2% sequential decline in net profit for the quarter ended September 2026, as rising revenue failed to offset pressure on operating margins.
The engineering and technology services company posted a net profit of 1.71 billion rupees ($20.5 million) for the second quarter of fiscal 2027, down from 1.81 billion rupees in the April-June quarter, according to a stock exchange filing.
Revenue from operations rose 2% quarter-over-quarter to 16.99 billion rupees from 16.65 billion rupees, supported by continued demand for the company’s engineering and technology services.
However, operating profitability weakened during the quarter. Earnings before interest and taxes (EBIT) declined 1.2% to 2.19 billion rupees from 2.22 billion rupees in the preceding quarter.
The company’s EBIT margin narrowed to 12.9%, compared with 13.3% in the previous quarter, reflecting continued pressure on profitability.
Despite the sequential decline in earnings, Tata Technologies Chief Executive Officer and Managing Director Warren Harris expressed confidence in the company’s growth prospects for the remainder of the fiscal year.
“I am pleased with our strong performance in Q2, with revenues growing 28 per cent year-on-year, reinforcing our positive outlook for FY27. We remain confident in delivering strong double-digit growth for the full year, supported by robust demand, ongoing program ramp-ups, and healthy pipeline conversion,” Harris said.
He highlighted the company’s expanding capabilities in automotive engineering, aerospace and artificial intelligence as key drivers of its long-term growth strategy.
“Through our leadership in product realisation, growing full-vehicle development capabilities, expanding Aerospace presence, and AI-native transformation, we believe Tata Technologies is becoming a highly differentiated engineering and technology partner, well-positioned for sustainable long-term growth,” Harris said.
The company expects continued customer demand, the expansion of existing projects and the conversion of new business opportunities to support double-digit revenue growth for fiscal 2027. (Source: IANS)
