Tata Technologies shares in focus after Q1 profit rises 5% YoY to Rs 170 crore; revenue slips 2%
ADVERTISEMENT Revenue from operations declined 2% YoY to Rs 1,244 crore, compared with Rs 1,269 crore in Q1FY25.
Sequentially, profit after tax (PAT) dropped 10% from Rs 189 crore in Q4FY25, while revenue fell nearly 3% from Rs 1,288.7 crore in the previous quarter.
Operating EBITDA for the quarter stood at Rs 200 crore, with an EBITDA margin of 16.1%. EBIT for the period came in at Rs 182 crore. The net profit margin improved to 13.7% from 12.8% a year ago.Revenue from the services segment in Q1FY26 was Rs 964 crore. In dollar terms, total operating revenue was $145.3 million, while services segment revenue stood at $112.5 million.
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ADVERTISEMENT Commenting on the company's earnings, CEO & MD Warren Harris said that client confidence strengthened steadily even as the quarter began on a cautious note. This was a testimony to the company's long-term commitments to product innovation and digital transformation, he added."This renewed belief in building the future supported strong deal momentum, resulting in six strategic wins. As we look ahead, we remain optimistic about a sequential recovery in Q2 and a stronger second half of FY26. Our deal pipeline today is more robust than a year ago, and the early momentum we're seeing provides greater visibility and conviction in improved conversion through the year," Harris said.
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As per Trendlyne, the average target price for Tata Technologies is Rs 686, implying a marginal downside of around 4% from current levels. Among the 14 analysts tracking the stock, the consensus rating is 'Sell'.
ADVERTISEMENT Also Read: Brokerages initiate coverage on Delhivery, 7 other stocks; up to 33% upside seen
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