Conference Call with Tata Technologies Ltd. Management and Analysts on Q4FY26 & Full Year Performance and Outlook. Listen to the full earnings transcript.
IT Software Products company Tata Technologies announced Q4FY26 & FY26 results Q4FY26 Financial Highlights: Total Operating Revenue stood at Rs 15,722 million, reflecting a growth of 15.1% QoQ and 22.3% YoY. Services Segment Revenue was Rs 12,196 million, an increase of 15.0% QoQ and 19.1% YoY. Technology Solutions Segment Revenue stood at Rs 3,526 million, up 15.4% QoQ and 34.8% YoY. Operating EBITDA was Rs 2,521 million, showing a growth of 30.7% QoQ and 8.0% YoY. Operating EBITDA Margin stood at 16.0%, expanding by 190 bps QoQ. Net Income for the quarter was Rs 1,625 million, an increase of 20.3% QoQ, though it declined by 14.0% YoY. Net Income Margin for Q4FY26 was 10.3%, up 45 bps compared to Q3FY26. Diluted Earnings Per Share (EPS) for Q4FY26 was Rs 4.00, up 20.4% QoQ but down 13.9% YoY. FY26 Financial Highlights: Total Revenue from operations for FY26 was Rs 55,056 million, representing a YoY growth of 6.5% compared to Rs 51,685 million in FY25. Services Segment Revenue for FY26 reached Rs 42,563 million, up 5.7% YoY. Technology Solutions Segment Revenue for FY26 was Rs 12,493 million, up 9.5% YoY. Annual Operating EBITDA stood at Rs 8,530 million, a decline of 8.7% YoY. Annual Net Income was Rs 6,332 million, representing a 6.5% YoY decrease from Rs 6,770 million in FY25. Annual Diluted EPS for FY26 was Rs 15.60 compared to Rs 16.66 in FY25. Business Highlights Segment-wise Performance: Services Segment: Contributed 78% of the total operating revenue in Q4FY26. Within this segment, the revenue mix was 81% from Auto and 19% from Non-Auto clients. Technology Solutions Segment: Contributed 22% of the total operating revenue during the quarter. Revenue Mix: In Q4FY26, Onshore revenue accounted for 67%, while Offshore revenue (delivered from India and Romania) accounted for 33% of the total Services revenue. Strategic Wins and Developments: Secured a multi-year, multi-million-USD full vehicle engineering program with a leading Japanese automotive OEM, marking a scaled entry into the Japanese market. Selected by a European luxury automotive OEM to own their enterprise PLM Service Transformation and operations across all product domains. Partnered with a North American commercial vehicle OEM to provide end-to-end services across PLM, Testing & QA, MES, and program management. Selected for a long-term Comfort Electronics development and integration engagement by a European automotive OEM spanning multiple vehicle platforms. Entered into a multi-year engagement with a Tier 1 automotive supplier for a superscale Global Engineering Centre (GEC) mandate. Operational and Liquidity Metrics: The total headcount at the end of Q4FY26 was 12,646 employees. Voluntary attrition for the last twelve months (LTM) was 16.2%. Free Cash Flow (FCF) for Q4FY26 was Rs 2,349 million compared to Rs 1,908 million in Q3FY26. Day Sales Outstanding (DSO) improved to 95 days in Q4FY26 from 111 days in Q3FY26. Warren Harris, Chief Executive Officer & Managing Director, said: “I am pleased that the momentum built in Q3 carried through to Q4, delivering 12% revenue growth in cc and a 190 bps margin expansion. This marks a clear inflection for the business, with growth broad?based rather than concentrated in any single customer or program. Strong execution against guidance, improving order book visibility, and rising wins in full?vehicle programs – which serve as a strategic wedge to deepen lifecycle engagement and enable systematic expansion across adjacent services – reinforce our confidence in FY27, where we continue to expect double?digit organic growth with sustainable margin expansion.” Uttam Gujrati, Chief Financial Officer, said: “We delivered an outstanding quarter, marked by strong revenue growth, meaningful margin expansion, and robust free cash flow generation, underscoring excellent execution across the organization. Margins expanded on the back of operating leverage and sustained focus on efficiency. As we enter the new fiscal year, we do so with strong momentum and remain firmly focused on operational rigor to drive durable growth and profitability.” Result PDF