Tata Technologies Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 1,698.80 Cr (+28.37% YoY) and PAT growth of +3.59% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 14, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 1,698.80 Cr (+28.37% YoY) |
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| PAT (Q2) | Rs. 171.44 Cr (+3.59% YoY) |
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| EBITDA margin | 16.76% (+65 bps YoY) |
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| EPS (Q2) | Rs. 4.22 (+3.43% YoY) |
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| Market cap | Rs. 30,297.63 Cr |
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| CMP | Rs. 745.55 |
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Quarter Snapshot
Revenue grew 28.37% YoY to Rs.1,698.80 cr with EBITDA up 33.58% and margin up 65 bps YoY to 16.76%, but PAT grew only 3.59% as finance costs (+334% YoY), higher D&A and a 29.07% effective tax rate absorbed operating gains. Subsidiary contribution turned positive at +Rs.25.68 cr from −Rs.68.31 cr in Q1, indicating ES-Tec consolidation losses are narrowing. H1 operating cash flow of −Rs.316.00 cr and a Q2 margin 124 bps below the FY27 exit target of >18% frame the H2 delivery challenge.
Key Investment Insights
Key Positives
- Revenue grew 28.37% YoY to Rs.1,698.80 cr; Services segment revenue grew 33.85% YoY with PBIT margin at 30.12%
- EBITDA grew 33.58% YoY to Rs.284.69 cr, with margin up 65 bps YoY to 16.76%
- Subsidiary contribution turned positive at +Rs.25.68 cr in Q2 from −Rs.68.31 cr in Q1, indicating ES-Tec consolidation losses are narrowing
- Technology Solutions PBIT margin recovered 160 bps QoQ to 19.06%
- Employee cost-to-revenue ratio improved 67 bps YoY to 48.46%
- H1 revenue grew 30.99% YoY to Rs.3,363.43 cr with EBITDA margin up 42 bps to 16.70%
- ES-Tec earnout consideration reduced by Rs.28.98 cr and goodwill by Rs.18.63 cr on provisional purchase-price adjustment
Risk Factors
- H1 operating cash flow was −Rs.316.00 cr (CFO/PAT −0.90x) vs +Rs.38.03 cr in H1 FY26, driven by working capital absorption including a Rs.500.50 cr outflow swing in other current liabilities
- PAT grew 3.59% YoY vs revenue growth of 28.37%, a 25 pp gap driven by finance costs (+334% YoY), D&A (+75.69% YoY) and effective tax rate rising to 29.07%
- Q2 EBITDA margin of 16.76% is 124 bps below the FY27 exit target of >18%; H2 requires ~19.2% average margins
- Outsourcing and consultancy charges doubled YoY (+100.09%) to Rs.186.48 cr, the fastest-growing cost line
- Technology Solutions revenue declined 6.68% QoQ
- Finance costs of Rs.19.85 cr on US$60M ES-Tec acquisition debt will persist until repaid or refinanced