Tata Technologies

“Services continue to demonstrate strong momentum, providing resilience to our overall performance. Resultantly, we remain confident in reiterating our double-digit consolidated revenue growth outlook for the full year.”

“Based on our first-half performance, continued program ramp-ups, and healthy pipeline conversion, we remain confident in maintaining strong double-digit growth for FY27.”

“Against this backdrop, we expect to deliver sequential margin improvement through disciplined execution and productivity initiatives.”

“Accordingly, we reiterate our expectation of delivering double-digit consolidated growth for the full year while continue to drive sustainable margin improvements”

“We are working very, very hard to support them through what is difficult market conditions, but this in no way tempers our confidence in strong double-digit growth this year, and our ability to be able to expand margins in the second half of the year.”

“During the quarter, we invested in a new office facility in Pune to consolidate our operations and create capacity for future growth. This has led to an increase in D&A and lease-related interest cost.”

“We also secured an engagement with a leading North American commercial vehicle manufacturer to lead the end- to-end development of a new vehicle platform and support the associated digital SDV infrastructure.”

“The $138 million is for a luxury European automotive OEM. As we speak, beginning the ramp-up of that program, that will make a contribution towards our second half and will also inform the order book for next year and the year after that.”

“We are anticipating that we'll be able to share a couple of wins with you before the end of the calendar year, and that looks set to continue into Q4 and beyond.”

“In terms of timelines, this particular deal will run for about two- and-a-half years, but we also expect variant opportunities to extend beyond the initial scope that we've secured.”

“These deals that we're winning now are strategic commitments that we are making, and the customer is making to us. And so, we fully expect the investment that we're making in infrastructure, people, and technology to extend beyond the first award that we've been successful with.”

“BMW has publicly announced plans to reduce headcount in Germany while continuing to invest in and scale our joint venture in India.”

“Several large engineering engagements and full vehicle programs secured over recent quarters are now ramping, and we expect a more meaningful contribution from these programs during the second half of the year.”

“While automotive remains our primary growth engine, aerospace is emerging as an important second growth engine for our company.”

“Growth was broad-based, with automotive growing 7.6% QoQ, excluding ES-Tec, while non-automotive grew 7.5% sequentially in US dollar terms.”

“Technology Solutions grew 9.2% year-over-year in constant currency while declining 6.6% sequentially to INR 343 crores.”

“We believe OEMs will increasingly focus on what defines their brands while outsourcing more engineering and product development activity.”

“Demand across the aerospace sector remains strong while the industry continues to face challenges in engineering capacity, production throughput, and manufacturing efficiency.”

“We think that everything else is going to be outsourced and we think that the primary winners of that structural change in the industry will be those companies like ourselves that can own outcomes.”

“And so, we think that the Big Three in Detroit will -- despite the position of the current administration, we think that investment will really start to scale in alternative propulsion systems and tech as it pertains to SDV.”

“And I think what we're starting to see now with the tapering of EV adoption is a lot of opportunity that is being positioned in and around taking BEV platforms and introducing and packaging ICE propulsion systems in various forms into that same platform.”

“Despite absorbing annual salary increments, representing more than a 100-basis-point headwind, operating EBITDA margins remained resilient at 16.1%, reflecting continued execution discipline and the strength of our operating model.”

“I think, in terms of margins, we were very pleased with the progress in Q2, that largely because we rolled out salary increments and we were able to squeeze out -- it was only a 10-basis-point improvement”

“As we scale better, this cost will further go down and will be replaced by the permanent employees that we have.”

“As revenues scale and operational leverage strengthens, we expect these investments to be increasingly absorbed within the business, supporting profitability over the medium term.”

“At the end of Q2, our net cash position stood at approximately INR 330 crores compared to INR 880 crores at the end of Q1.”

“Our DSO stood at 102 days at the end of Q2 compared with 97 days in the previous quarter. Our billed DSO came in at 63 days compared with 65 days in Q1, an improvement, while the unbilled DSO were at 39 days compared to 32 days.”

“While we saw a modest sequential increase in the unbilled DSO, collections remained healthy, and the movement in unbilled was largely timing-related, with no change in the underlying quality of our receivables.”

“Tata Motors CV are about to complete the acquisition of Iveco. We will see, I believe, opportunity that we hope to be able to contribute to the success of that particular transaction.”

“The sequential reduction was primarily driven by the dividend payout of nearly INR 475 crores during the quarter.”

“Other income dropped 35% year-on-year to INR 31 crores, driven by non-cash items like foreign exchange gain/losses.”

“Demand at ES-Tec remains subdued, particularly from its largest customer in Germany. While we anticipate some additional softness in Q3, we expect conditions to stabilize in 2027”

“We are also managing through a period of temporary demand softness in parts of our Germany business as customers undertake restructuring and cost-optimization measures.”

“The challenge that we will have to grapple with is obviously capability, infrastructure, and increasingly the investment in the AI platforms that will continue to defend our competitive moat.”

“Revenues from operations grew 22.2% Y-o-Y in constant currency to USD178 million, while operating EBITDA remained steady at 16.1% despite absorbing the impact of annual salary increments during the quarter.”

“Services revenue increased 4.3% Q-o-Q in constant currency to INR 1,356 crores, reflecting continued growth in our services business and ramp-up of strategic programs.”

“EBITDA grew 2.2% quarter-on-quarter and 31.5% year-on-year compared with the same quarter last year to INR 273 crores.”

“Our total headcount stood at 12,895 associates at the end of the quarter, representing a net increase of 316 employees or 2.5% sequentially.”

“At the same time, attrition reduced by 70 basis points sequentially to 15.6%, reflecting the progress we are making in employee experience, career development, and engagement.”