Tata Technologies Limited (TATATECH) AI Stock Analysis

• Market Cap: ₹264.89B
• Dividend Yield: 1.26%
• Average Volume (3M): 76.22K
• Price to Earnings (P/E): 38.2
• 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): 4.10
• Shares Outstanding: 405,743,600
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ₹761.00 ▲(16.84% Upside)

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

Revenue Growth

Consistent revenue growth indicates strong demand for Tata Technologies' services and products, enhancing its market position and future earnings potential.

Balance Sheet Health

A strong balance sheet with low debt-to-equity ratio provides financial stability and flexibility for strategic investments and growth initiatives.

Cash Generation Ability

Strong free cash flow generation enhances Tata Technologies' ability to fund operations, invest in growth opportunities, and return capital to shareholders.

Negative Factors

Operational Efficiency Concerns

Declining EBIT indicates potential inefficiencies in operations, which could impact profitability if not addressed through cost management or process improvements.

Liability Management

Rising liabilities could pose risks to financial stability, necessitating careful management to prevent strain on cash flows and financial flexibility.

Cash Flow Volatility

Volatile cash flows can affect the company's ability to consistently fund operations and investments, potentially impacting long-term strategic planning.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Negative
• 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 below the 20-day moving average (MA) of 653.77, below the 50-day MA of 667.43, and below the 200-day MA of 689.78, indicating a bearish trend. The MACD of -2.15 indicates Negative momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 55.18 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	₹354.31B	52.83	―	1.38%	-1.19%	-17.92%
CYIENT	73 Outperform	₹129.11B	22.30	―	2.62%	1.68%	-12.95%
TATATECH	70 Outperform	₹264.89B	38.20	―	1.26%	0.29%	7.17%
KPITTECH	69 Neutral	₹324.27B	41.61	―	0.69%	13.34%	5.98%
LTTS	62 Neutral	₹461.48B	36.09	―	1.19%	14.88%	-2.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NEWGEN	61 Neutral	₹114.17B	34.21	―	0.59%	11.47%	12.41%

Tata Technologies Limited Corporate Events

Tata Technologies Completes Strategic Acquisition of ES-Tec GmbH

Tata Technologies has successfully completed the acquisition of ES-Tec GmbH and its subsidiaries, ahead of the planned timeline, for €75 million. This strategic move enhances Tata Technologies’ position in the automotive industry by integrating over 300 German engineers with expertise in ADAS and connected platforms, strengthening its capability to deliver complex engineering solutions. The acquisition provides Tata Technologies with direct access to European OEM programs, particularly with major players like BMW and Volkswagen, further solidifying its role in vehicle research and electrification programs.

Tata Technologies Releases Earnings Call Recording for Q2 2025

Tata Technologies Limited announced the availability of an audio recording of its earnings conference call, which discussed the unaudited financial results for the quarter and half year ended September 30, 2025. This release is part of the company’s commitment to transparency and compliance with SEBI regulations, providing stakeholders with insights into its financial performance and strategic direction.