Tata Technologies Anticipates Robust Growth in Upcoming Fiscal Year
Despite ongoing global geopolitical tensions and economic uncertainties, Tata Technologies Ltd is poised for a very strong year in the next fiscal period from an aggregate growth perspective, according to its CEO and Managing Director Warren Harris. The company, a global leader in product engineering and digital services, is benefiting from international automakers moving forward with their investment plans after a period of hesitation.
Automotive Sector Investment Revival
Harris explained that the automotive business is inherently product-driven, and for the past 18 to 24 months, many customers in North America and Europe have been sitting on their hands due to uncertainty. This indecision revolved around which propulsion systems to invest in, where to build products, and how to manage supply chains effectively.
At least now, whether we like the current environment or not, we've got certainty, Harris stated. He emphasized that customers are now making decisive investment choices against this backdrop of uncertainty, which is driving the company's confidence for the fourth quarter and the upcoming fiscal year.
Growth Projections and Financial Performance
For the fiscal year 2026, Tata Technologies aims to achieve sequential double-digit growth from the third quarter to the fourth quarter. Furthermore, the company expects to deliver organic double-digit growth in the next year. In the third quarter ending December 31, 2025, the company reported consolidated revenue from operations at Rs 1,365.73 crore, compared to Rs 1,317.38 crore in the same period the previous year.
Strategic Acquisition and Expansion
Last year, Tata Technologies acquired Germany-based ES-Tech GmbH and its subsidiaries for 75 million euros (over Rs 775 crore). Harris highlighted that this acquisition is expected to contribute approximately USD 40 million in additional business and will support the overall growth trajectory. This inorganic growth will complement the organic double-digit growth targets, enhancing both top-line and bottom-line performance.
We are looking at a very good year next year, both top line and bottom line, Harris noted, indicating that increased volume is anticipated to translate into significant margin improvements.
Workforce and Technological Investments
Regarding hiring plans to meet growth expectations, Harris mentioned that as the company moves into the next fiscal year, no additional resources are immediately required. However, as anticipated growth continues throughout the year, Tata Technologies will need to start adding headcount incrementally.
Despite heavy investments in artificial intelligence (AI) and digital technologies, Harris assured that the company does not foresee any material retrenchments. Instead, these investments will complement incremental growth, with the company focusing on reskilling teams to align capabilities with market demands. Harris added that the organization has maintained a relatively lean structure in terms of overhead and bench resources.
Government Support and Industry Maturity
On the expectations from the upcoming Union Budget, Harris expressed appreciation for the government's supportive stance towards the manufacturing sector, particularly the automotive industry. He hopes this support will continue, as it is accelerating not only the size of the manufacturing and automotive sectors but also enhancing the maturity of these industries within India.
Harris concluded by reiterating the company's optimistic outlook, driven by renewed customer investments and strategic initiatives, positioning Tata Technologies for sustained growth in the challenging global landscape.
