Tata Technologies Limited (TATATECH) AI Stock Analysis

• Market Cap: ₹237.55B
• Dividend Yield: 1.26%
• Average Volume (3M): 76.22K
• Price to Earnings (P/E): 44.7
• Beta (1Y): 1.27
• Revenue Growth: 0.29%
• EPS Growth: 7.17%
• Country: IN
• Employees: 12,451
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 1.75
• Shares Outstanding: 405,764,340
• 10 Day Avg. Volume: 59,386
• 30 Day Avg. Volume: 76,218
• PEG Ratio: -114.92
• Price to Book (P/B): 7.79
• Price to Sales (P/S): 5.39
• P/FCF Ratio: 41.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹655.00
• Price Target Upside: 0.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 15.55
• Revenue Forecast (FY): ₹54.22B

• Rating: 70 Outperform
• Price Target: ₹644.00 ▼(-1.12% Downside)
• Action: Upgraded Date: 11/01/25
• Date: Action: Upgraded 11/01/25

Tata Technologies Limited's strong financial performance is the primary driver of its stock score, supported by solid revenue growth and profitability. However, the high P/E ratio and modest dividend yield suggest the stock may be overvalued, which, along with neutral technical indicators, tempers the overall score.

Positive Factors

Strong revenue growth

Sustained high revenue growth indicates expanding demand for Tata Technologies' engineering and digital services and larger program wins with OEMs. Over a multi-month horizon this supports reinvestment in capabilities, scale benefits in delivery centers, and durable top-line momentum tied to client program duration.

Robust margins

Consistently strong gross and net margins plus healthy EBIT/EBITDA margins show the company extracts value from high-skill engineering work. This margin profile supports sustained cash generation, pricing power on specialized services, and capacity to fund R&D or platform investments over the medium term.

Low leverage, strong equity base

A solid balance sheet with low leverage and strong equity provides financial flexibility to invest in growth, pursue large client programs, and withstand downturns. High ROE reflects efficient capital use, enabling durable ability to fund capex or strategic hiring without over-reliance on external debt.

Negative Factors

Rising total liabilities

An increase in total liabilities, despite low D/E overall, raises medium-term risk if liabilities grow faster than cash generation. It could signal higher payables, deferred obligations, or contingent exposures that would constrain financial flexibility and require close monitoring of funding needs and covenant headroom.

Operating cash flow volatility

Volatile operating cash flow in a project-driven engineering services model reduces predictability of free cash flow for capex, investments, or shareholder returns. Over several months this increases financing risk for large programs and complicates planning for hiring, platform investment, or smoothing dividends.

Slight decline in EBIT

A year-on-year dip in EBIT points to emerging operational efficiency pressures—higher costs, mix shifts, or pricing pressures. If persistent over the coming quarters it could erode the company's strong margin base and reduce cash available for strategic investments or to absorb project execution overruns.

Tata Technologies Limited Business Overview & Revenue Model

Company Description

Tata Technologies Limited operates as a product engineering and digital services company in the North America, Europe, and Asia Pacific. It operates in Service and Technology Solutions segments. The company offers IT consultancy, SAP implementation and maintenance, networking, and CAD/CAM engineering and design consultancy services; and education services, as well as resells third-party software applications. Its services include end to end electric vehicle, turnkey full vehicle development, product benchmarking, embedded engineering, hardware in the loop testing and validation, model-based systems engineering, digital transformation, aerospace engineering and MRO, electric vehicle modular platform, RightWeighting 5R, Pulse, digital manufacturing, digital customer experience, enterprise transformation SAP S/4 HANA, Factorymagix, AMP.IOT, centralized hybrid integration platform, power of 8, tata technologies rapid connected environment, and visimatic solutions. Tata Technologies Limited was formerly known as Tata Technologies (India) Limited and changed its name to Tata Technologies Limited in February 2001. The company was founded in 1981 and is headquartered in Pune, India. Tata Technologies Limited operates as a subsidiary of Tata Motors Limited.

How the Company Makes Money

Tata Technologies generates revenue through multiple streams, primarily by providing engineering and IT services to clients in the automotive and aerospace industries. The company earns fees from project-based work, consulting services, and long-term contracts for ongoing support. Additionally, TATATECH capitalizes on its strong relationships with major automotive manufacturers and OEMs (Original Equipment Manufacturers), which often leads to repeat business and long-term partnerships. The company also invests in developing proprietary digital tools and software solutions that can be licensed to clients, creating an additional revenue stream. Significant partnerships with industry leaders enhance TATATECH's market position and contribute to its overall earnings by expanding its service offerings and client base.

Tata Technologies Limited Financial Statement Overview

Summary

Tata Technologies Limited shows strong financial health with robust revenue growth, profitability, and a stable balance sheet. The company has a low debt-to-equity ratio and impressive return on equity. However, there are slight concerns about operational efficiency and liability management.

Income Statement

Tata Technologies Limited has demonstrated strong revenue growth over the years, with a notable increase from 2024 to 2025. The Gross Profit Margin and Net Profit Margin are robust, reflecting efficient cost management and profitability. EBIT and EBITDA margins are also strong, signifying operational efficiency. However, a slight decline in EBIT from the previous year suggests potential challenges in operational efficiency that need monitoring.

Balance Sheet

The company's balance sheet is solid, with a healthy Equity Ratio indicating strong capitalization and financial stability. The Debt-to-Equity Ratio is low, showing prudent financial leverage management. Return on Equity is impressive, reflecting efficient use of equity to generate profits. However, the increase in total liabilities warrants attention for potential risks.

Cash Flow

The cash flow statement indicates a positive trend in Free Cash Flow, showcasing the company's ability to generate cash after capital expenditures. The Operating Cash Flow to Net Income ratio is healthy, implying effective cash conversion from profits. However, fluctuations in operating cash flow over the years indicate some volatility in cash generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	51.44B	51.68B	51.17B	44.14B	35.30B	23.81B
Gross Profit	13.61B	13.89B	13.32B	11.27B	8.33B	4.82B
EBITDA	10.73B	10.58B	10.57B	9.09B	6.94B	4.25B
Net Income	6.85B	6.77B	6.79B	6.24B	4.37B	2.39B
Balance Sheet
Total Assets	0.00	66.64B	55.78B	52.17B	42.30B	35.73B
Cash, Cash Equivalents and Short-Term Investments	14.80B	15.61B	9.63B	10.29B	13.97B	12.80B
Total Debt	0.00	2.37B	2.57B	2.55B	2.61B	2.66B
Total Liabilities	-35.79B	30.85B	23.57B	22.28B	19.50B	14.31B
Stockholders Equity	35.79B	35.79B	32.21B	29.89B	22.80B	21.42B
Cash Flow
Free Cash Flow	0.00	6.68B	2.03B	3.36B	-1.02B	10.98B
Operating Cash Flow	0.00	6.99B	2.94B	4.01B	-387.10M	11.13B
Investing Cash Flow	0.00	-885.30M	3.94B	-4.87B	742.10M	-6.74B
Financing Cash Flow	0.00	-4.86B	-5.57B	-3.47B	-444.11M	-440.71M

Tata Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 651.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TATATECH, the sentiment is Negative. The current price of 651.3 is above the 20-day moving average (MA) of 612.00, above the 50-day MA of 636.89, and below the 200-day MA of 684.07, indicating a bearish trend. The MACD of -17.04 indicates Positive momentum. The RSI at 35.76 is Neutral, neither overbought nor oversold. The STOCH value of 28.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TATATECH.

Tata Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TATAELXSI	74 Outperform	₹281.10B	48.42	―	1.38%	-1.19%	-17.92%
CYIENT	73 Outperform	₹101.77B	18.56	―	2.62%	1.68%	-12.95%
TATATECH	70 Outperform	₹237.55B	44.70	―	1.26%	0.29%	7.17%
KPITTECH	66 Neutral	₹211.53B	29.18	―	0.69%	13.34%	5.98%
NEWGEN	65 Neutral	₹72.46B	23.63	―	0.59%	11.47%	12.41%
LTTS	62 Neutral	₹373.26B	29.65	―	1.19%	14.88%	-2.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Tata Technologies Limited Corporate Events

Tata Technologies Allots 1.78 Lakh Shares Under Long-Term Incentive Scheme

Tata Technologies Limited has allotted 177,622 equity shares of ₹2 each under its 2022 Share Based Long Term Incentive Scheme, following approval by the Nomination and Remuneration Committee on 28 February 2026. As a result, the company’s paid-up equity share capital has risen from ₹81,16,03,398 to ₹81,19,58,642, with the total number of shares increasing to 40,59,79,321.

The newly issued shares, which have already received in-principle listing approvals from both NSE and BSE, are fully paid and rank pari passu with existing equity shares in terms of dividend and other rights. This incremental issuance underscores Tata Technologies’ continued use of equity-based incentives to retain and motivate talent, while causing only a marginal dilution for existing shareholders within a pre-cleared regulatory framework.

Tata Technologies’ WATTSync Primed for India’s Battery Aadhaar and Global Passport Rules

Tata Technologies has announced that its battery intelligence platform WATTSync is fully prepared to support India’s forthcoming Battery Aadhaar ecosystem, designed to provide a unified, QR-code-enabled digital identity and traceability for battery packs. The platform is positioned to help manufacturers and stakeholders meet India’s 21-character Battery Pack Aadhaar Number requirements while remaining aligned with the European Union’s battery passport standards under EU Battery Regulation 2023/1542.

WATTSync enables end-to-end lifecycle traceability and compliance by generating and managing unique battery identities, integrating secure QR-based digital IDs, and connecting to central servers to satisfy emerging regulatory mandates. Built on a cloud-ready, microservices architecture, it also underpins advanced safety intelligence, predictive maintenance, and circular-economy data flows, strengthening Tata Technologies’ role in enabling sustainable mobility and reinforcing its positioning in global battery compliance and data-management frameworks.

Tata Technologies Grants 30,761 Performance Stock Options Under 2022 LTIP

Tata Technologies Limited has granted 30,761 performance-based employee stock options under its 2022 Share Based Long Term Incentive Scheme, following shareholder approval and in line with SEBI’s share-based employee benefit regulations. The options, exercisable into an equal number of equity shares at face value of ₹2 each, will vest after three years and must be exercised within one year of vesting, underscoring the company’s use of equity-linked incentives to retain and motivate key talent, align employee interests with long-term shareholder value, and support its strategic growth objectives in a competitive engineering and digital services market.

Tata Technologies Publishes Earnings Call Audio for December Quarter

Tata Technologies Limited has notified the stock exchanges that the audio recording of its earnings conference call held on January 16, 2026, to discuss the unaudited financial results for the quarter and nine months ended December 31, 2025, has been made available on the company’s website. The disclosure, made in line with SEBI listing regulations, enhances transparency for investors and other stakeholders by providing convenient access to management’s commentary and discussion on recent financial performance.

Tata Technologies posts steady Q3 FY26 growth, signals sharp acceleration ahead

Tata Technologies Limited reported unaudited financial results for the quarter ended December 31, 2025, highlighting its role as a global product engineering and digital services provider with a diversified portfolio and expanding delivery capacity. For the quarter, total operating revenues reached ₹13,657 million, up 3.2% sequentially, with services segment revenues rising 4.7% quarter-on-quarter to ₹10,602 million (US$118.6 million, up 2.6% QoQ). Operating EBITDA was ₹1,929 million, reflecting an EBITDA margin of 14.1%, while adjusted net income stood at ₹1,350 million with a net income margin of 9.9%; the company also reported last twelve months attrition of 15.8% and a workforce of 12,580. Management emphasized that despite seasonal softness and temporary headwinds, six strategic deal wins, strong vertical performance and ongoing investment in delivery capacity position the company for a sharp acceleration in the next quarter, with expectations of over 10% sequential revenue growth and a return to, and surpassing of, prior adjusted margin levels. Executives highlighted that portfolio diversification, reduced client concentration risk and the integration of the Es-Tec acquisition are transforming Tata Technologies’ growth engine, while a disciplined workforce strategy and investments in future-ready skills are intended to support sustainable growth and long-term value creation for customers and shareholders.

Tata Technologies Says No Undisclosed Events Behind Surge in Share Volume

Tata Technologies Limited has responded to a query from the National Stock Exchange of India regarding a significant increase in the trading volume and price movement of its shares, stating that there is no pending information or undisclosed material event that could materially impact its securities. The company attributed the recent volatility in its stock to prevailing market conditions and investor sentiment, and reiterated its commitment to transparent, timely disclosures in line with SEBI’s listing regulations, aiming to reassure investors and regulators about its compliance and governance standards.