Tata Technologies

Tata Technologies plans to hire more local nationals in the United States as the company responds to immigration policy changes under Donald Trump's administration. The US plans to charge businesses higher fees for H-1B visas, which are widely used by tech companies. CEO Warren Harris stated the company will recruit more local nationals in response to visa legislation changes. Tata Technologies provides engineering services to automotive, aerospace and heavy machinery companies across two dozen countries, with over 12,000 employees globally. North America represents about 20% of the company's $587.97 million revenue in 2024-2025. The company already employs over 70% local nationals in China, Sweden, the UK and US. Harris remains optimistic about the US market, expecting growth in 6-9 months as customers adapt to the new tariff regime. The company also plans targeted acquisitions following its $87.47 million purchase of German firm ES-Tec Group and reported a 5% rise in quarterly profit.

Tata Technologies delivered sequential revenue growth of 6.4% to Rs. 1,323 crores in Q2 FY26, with services business growing 5.1% to Rs. 1,013 crores. The company reported normalized EBITDA margin of 16.4% after adjusting for cyber incident-related expenses of over Rs. 10 crores. Aerospace and Industrial Heavy Machinery segments delivered 14% sequential revenue growth in US dollar terms, while automotive vertical recorded 0.5% sequential increase. The company closed three large deals during the quarter, including engagements with a Tier 1 automotive supplier, a Scandinavian OEM for heads-up display development, and the first direct deal with a German OEM. Tata Technologies signed a definitive agreement to acquire ES-TEC, which provides access to Volkswagen as a key customer and adds over 300 engineers with expertise in ADAS, Connected Driving, and Embedded Software. The BMW joint venture scaled to over 1,000 employees. Management expects some moderation in Q3 due to seasonal factors and temporary headwinds including JLR's IT system restoration, followed by recovery in Q4. DSO increased to 109 days from 87 days in the previous quarter, while net cash position stood at $123 million. Total headcount remained stable at 12,402 employees with attrition rate at 15.1%.

Tata Tech expects recovery in Q4 FY26 driven by recent contracts and rising demand. The company anticipates slower growth and margin pressure in Q3 FY26 due to salary increases and temporary customer challenges. Tata Tech does not provide detailed revenue or earnings forecasts.