Tata Technologies reported its earnings after market hours on Wednesday. Tata Technologies reported a 3.59 per cent year-on-year (YoY) rise in consolidated net profit to Rs 171.44 crore for the quarter ended September 30, 2026 (Q2 FY27) compared with Rs 165.50 crore in the corresponding quarter last year.
The company's total operating revenue increased 28.4 per cent YoY to Rs 1,698.8 crore during the second quarter. Services segment revenue grew 33.9 per cent YoY to Rs 1,355.7 crore.
Brokerage MOFSL said EBIT margin was 12.9% (down 40bp QoQ) below its estimate of 13.5%. Adjusted PAT dipped 5.1% QoQ, but rose 3.6% YoY to Rs 171.4 crore (below MOFSL's estimates of Rs 200.4 crore).
The brokerage maintained its sell rating with a target price of Rs 630 based on 26x FY28E EPS.
"At 32 times FY28E P/E, we believe the current valuation already reflects the strong double-digit growth guidance and continued margin expansion. While execution has been better over the last three quarters, TTL trades at a 90% premium to KPIT (17x FY28E P/E) and 31% premium to Tata Elxsi (24x FY28E
P/E). We therefore believe the premium valuation leaves limited room for error," said MOFSL.
Brokerage JM Financial maintained its reduce rating on the Tata stock.
"We are revising FY28–29E EPS, marginally incorporating Q2FY27 results. We maintain target multiple of 32x FY28E EPS, revise TP to Rs 735 (from Rs 730) with valuations at ~35x one-year forward consensus EPS; maintain REDUCE," said JM Financial.
The earnings came below the estimates of JM Financial.
Tata Tech reported Q2FY27 – services growth was inline while margins were lower. Overall revenue growth stood at 1.9% cc QoQ, below JM Financial estimates of 2.7%, primarily due to soft performance in the Technology Solutions segment.
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