Tata Technologies reported a robust 22.2% constant currency revenue growth for Q2 FY27, reaching Rs 1,699 crore. The company secured a major $138 million deal with a European luxury automaker, highlighting its strength in full-vehicle engineering. Despite minor headwinds in the German market and salary-related cost pressures, management remains confident in achieving double-digit growth for FY27.
Tata Technologies Reports Strong Q2 Growth and Major Deal Win
Revenue for Q2 FY27 rose by 22.2% in constant currency to US$178 million, while net profit (PAT) increased to Rs 171 crore.
Reader Takeaway: Robust large-deal wins and double-digit growth outlook provide upside, though German market softness remains a key pressure point.
What just happened
Tata Technologies reported its Q2 FY27 financial performance, highlighting a 26.2% year-on-year growth in services revenue, which now accounts for approximately 80% of total revenue. A standout achievement was the securing of a US$138 million full-vehicle engineering program with a European luxury automotive OEM, scheduled over 2.5 years. The company maintained a 16.1% EBITDA margin despite the impact of annual salary increments initiated during the quarter.
Why this matters
The company’s ability to win large, complex, long-term programs validates its strategy of focusing on AI-native delivery and full-vehicle development. This success helps diversify its client base and reduces reliance on anchor clients, while its growing aerospace segment acts as an emerging second engine for long-term revenue stability.
What changes now
Management has reiterated its commitment to delivering double-digit consolidated growth for FY27. While margins faced a 100-basis-point impact from wage hikes, the leadership anticipates operational efficiencies will drive margin improvements in the second half of the fiscal year.
Risks to watch
Investors should monitor the temporary softness in the German business, where client restructuring has caused some demand volatility. Additionally, the technology solutions segment experienced a 6.6% sequential revenue decline, and the education business is facing short-term delays related to infrastructure readiness.
Context metrics
Total headcount reached 12,895, representing a 2.5% sequential increase, with voluntary attrition showing improvement at 15.6%. Five large deals were signed during the quarter, indicating a healthy pipeline for the remainder of the year.