Tata Technologies , a global engineering and product development digital services company, has announced its financial results for the second quarter of fiscal year 2026, demonstrating solid performance and growth.

Financial Highlights

For the quarter ended September 30, 2025, Tata Technologies reported:

Segment Performance

The company operates through two main segments:

1. Services: Generated revenue of ₹1,012.82 crore
2. Technology Solutions: Contributed ₹310.51 crore to the total revenue

Half-Year Performance

For the half-year period ended September 30, 2025:

• Consolidated revenue reached ₹2,567.62 crore
• Profit after tax stood at ₹335.78 crore

Dividend Payout

During the half-year, Tata Technologies paid dividends totaling ₹11.70 per share, resulting in a cash outflow of ₹474.63 crore. This included:

• A final dividend of ₹8.35 per share
• A one-time special dividend of ₹3.35 per share

Strategic Developments

Acquisition Plans

On September 13, 2025, Tata Technologies, through its wholly-owned subsidiary Tata Technologies Pte Ltd, Singapore, entered into a definitive agreement to acquire 100% equity shares of Es-Tee GmbH, Germany, and its subsidiaries. The deal, valued at up to €75 million, is expected to close by December 31, 2025, subject to regulatory clearances.

Corporate Restructuring

Following Tata Motors' demerger approval, Tata Motors Passenger Vehicles Ltd (TMPVL) is set to become the holding company of Tata Technologies, effective October 1, 2025.

Management Commentary

Warren Harris, Chief Executive Officer and Managing Director, stated, "Our Q2 results reflect the continued strength of our business model and the growing demand for our engineering and digital services. The planned acquisition of Es-Tee GmbH aligns with our strategy to enhance our capabilities in high-end automotive engineering services, particularly in ADAS, Connected Driving, and Digital Engineering."

Tata Technologies' robust performance in Q2 FY26, coupled with strategic initiatives, positions the company well for future growth in the global engineering and digital services market.

Note: All financial figures are in accordance with Indian Accounting Standards (Ind AS).

Tata Technologies , a leading global engineering and product development digital services company, saw its shares rise 2.7% to Rs 721.00 following the announcement of a strategic acquisition in Germany. The company has agreed to acquire ES-Tec Group, a German engineering services provider, for €75 million in an all-cash deal.

Acquisition Details

• Deal Value: €75 million (approximately Rs 675.00 crore)
• Closing Date: Expected by December 31, 2025
• Payment Structure: Spread over two years, including performance-linked components

Strategic Rationale

The acquisition of ES-Tec Group is aimed at bolstering Tata Technologies' engineering and R&D capabilities in next-generation mobility technologies. Key areas of focus include:

1. Advanced driver-assistance systems (ADAS)
2. Connected driving technologies
3. Digital engineering solutions

This strategic move is expected to enhance Tata Technologies' presence in the German market, providing access to:

• A pool of skilled automotive engineering talent
• Established relationships with Original Equipment Manufacturers (OEMs)

Financial Impact

Tata Technologies anticipates that the acquisition will be earnings accretive from the first full year after completion, signaling potential positive impacts on the company's financial performance.

Recent Financial Performance

In its latest quarterly results, Tata Technologies reported:

Stock Performance

Despite the positive news, Tata Technologies' stock has faced challenges in the broader market:

• Year-to-date decline: 21% in 2025
• Current price: Rs 721.00
• Distance from record high: 50% below the peak of Rs 1,400.00

The acquisition announcement has provided a temporary boost to the stock, but it remains to be seen how this strategic move will impact long-term investor sentiment and company performance.

As Tata Technologies continues to expand its global footprint and technological capabilities, industry observers will be watching closely to see how this acquisition translates into growth and value creation for the company and its shareholders.