Synopsis:
Tata Technologies Limited’s Q1 FY26 revenue declined YoY and QoQ, while profit rose 5% YoY but fell QoQ. JPMorgan revised the target to ₹570, maintaining the “Underweight” rating.
This Tata Group Stock, engaged in engineering and product development digital services, primarily catering to the automotive, aerospace, and industrial machinery sectors globally, jumped 4 percent after the company reported June quarterly results with a 5.09 percent YOY increase in net profit.
With a market capitalization of Rs. 29,378.51 crores, the share of Tata Technologies Limited has reached an intraday high of Rs. 742 per equity share, rising nearly 3.52 percent from its previous day’s close price of Rs. 716.75. Since then, the stock has retreated and is currently trading at Rs. 724.20 per equity share.
Q1 FY26 Result Walkthrough
Coming into the quarterly results of Tata Technologies Limited, the company’s consolidated revenue from operations decreased by 1.94 percent YOY, from Rs. 1,268.97 crore in Q1 FY25 to Rs. 1,244.29 crore in Q1 FY26, and dropped by 3.22 percent QoQ from Rs. 1,285.65 crore in Q4 FY25.
Tata Technologies Limited generated 78 percent of its revenue from the services segment and 22 percent from the technology solutions segment in Q1 FY26. In Q1 FY26, Tata Technologies Limited’s consolidated net profit increased by 5.09 percent YOY, reaching Rs. 170.28 crore compared to Rs. 162.03 crore during the same period last year. As compared to Q4 FY25, the net profit has decreased by 9.84 percent, from Rs. 188.87 crore. The basic earnings per share increased by 5.01 percent and stood at Rs. 4.19 as against Rs. 3.99 recorded in the same quarter in the previous year, 2025.
Financial Highlights: Tata Technologies Limited’s revenue has increased from Rs. 5,117 crore in FY24 to Rs. 5,168 crore in FY25, which is a growth of 1 percent. The net profit has decreased by 0.29 percent, from Rs. 679 crore in FY24 to Rs. 677 crore in FY25. Tata Technologies Limited’s revenue and net profit have grown at a CAGR of 12.63 percent and 21.85 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 25.8 percent and 19.9 percent, respectively. Tata Technologies Limited has an earnings per share (EPS) of Rs. 16.9, and its debt-to-equity ratio is 0.07x.
Target: JPMorgan, a prominent brokerage firm, has recommended an “Underweight” call on Tata Technologies Limited, revising the target price to Rs. 570 from Rs. 580, which indicates a downside potential of 21.29 percent.
JPMorgan revised its target price for Tata Technologies Limited, citing concerns over profitability. While the company reported better-than-expected revenue in Q1, JPMorgan noted that margins fell short, reflecting operational pressures.
It observed a gradual improvement in deal closures and project ramp-ups from April to June, but emphasized that the recovery in R&D spending is still in early stages. JPMorgan stated it would wait for similar positive trends from peers in Auto Engineering R&D to confirm if the demand recovery is broad-based.
Overview: Tata Technologies Limited was founded in 1989 and is an Indian multinational technology company specializing in product engineering and digital transformation services for global automotive, aerospace, and industrial machinery manufacturers. The company is a subsidiary of Tata Motors and is headquartered in Pune, India, with regional headquarters in the US and operations in more than 27 countries.
Written By – Nikhil Naik
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