Tata Tech shares soar over 7% after Q4 results, but Motilal Oswal sees 15% downside; here’s why

Shares of Tata Technologies rallied as much 7.5% to the day’s high of Rs 635 on the BSE on Tuesday after it reported a consolidated net profit of Rs 204 crore for the March quarter, up 8% from Rs 189 crore in the same period last year. The profit is attributable to the company’s shareholders.

Revenue from operations for Q4 came in at Rs 1,572 crore, marking a 22% increase from Rs 1,286 crore in the year-ago quarter.

On a sequential basis, total operating revenue rose 15% to Rs 1,572 crore. Revenue from the services segment stood at Rs 1,220 crore, also up 15% quarter-on-quarter (QoQ). In dollar terms, services revenue was $132.6 million, reflecting an 11.9% sequential increase in constant currency.

Operating EBITDA for the quarter was Rs 252 crore, up 31% QoQ, while the EBITDA margin improved to 16% from 14.1% in the previous quarter. Adjusted net income stood at Rs 163 crore, up 20% sequentially, with net income margin at 10.3%, higher by 45 basis points on a QOQ basis.

Profit after tax surged 2,975% sequentially from Rs 6.64 crore reported in the previous quarter. Revenue also increased 15% from Rs 1,366 crore in the previous quarter.

What are experts saying?
Motilal Oswal maintains ‘Sell’ on Tata Tech share price with TP of Rs 500, a 15% downside. The brokerage said that while 4QFY26 saw a strong rebound and deal momentum has improved, revenue growth remains in the early stages of recovery and is dependent on execution over the next few quarters. Margin expansion is likely to be gradual and back-ended. We remain watchful of deal ramp-ups, FVP conversions and sustainability of demand before turning constructive. Auto spending is yet to see a clear inflection and recovery remains at an early stage, and management execution over the next couple of quarters will be key.
Commenting on performance, Chief Executive Officer and Managing Director Warren Harris said the momentum seen in Q3 continued into Q4, resulting in 12% revenue growth in constant currency and a 190 basis point expansion in margins.He noted that growth was broad-based rather than driven by a single client or program. He added that strong execution, better order book visibility, and increasing wins in full-vehicle programs support the company’s outlook for FY27, where it expects double-digit organic growth along with sustained margin expansion.

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