Tata Technologies CEO Expects Strong FY26 Growth Amid Customer Investment Revival
Tata Technologies CEO Warren Harris anticipates a "very strong year" in FY26 with double-digit organic growth as automotive customers resume investments after 18 months of uncertainty. The company reported Q3 revenue of Rs 1,365.73 crore, up 3.67% year-on-year, while the recent ES-Tech acquisition is expected to contribute USD 40 million in additional business. Harris noted that customers are now making investment decisions despite global uncertainty, driving confidence for sequential double-digit growth from Q3 to Q4 and continued expansion in the next fiscal year.
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Tata Technologies is gearing up for substantial growth in FY26 as international automotive customers resume investments after a prolonged period of uncertainty. CEO and MD Warren Harris expressed confidence about the company's prospects, citing renewed customer decision-making despite challenging global conditions.
Strong Growth Trajectory Expected
The global product engineering and digital services firm anticipates robust performance ahead, with Harris projecting sequential double-digit growth from Q3 to Q4, followed by organic double-digit growth in FY26. This optimism stems from automotive customers finally moving forward with investment decisions after months of hesitation.
| Financial Metric | Q3 FY25 | Q3 FY24 | Growth |
|---|---|---|---|
| Revenue from Operations | Rs 1,365.73 crore | Rs 1,317.38 crore | 3.67% |
Customer Investment Revival
Harris explained that automotive customers across North America and Europe had been "sitting on their hands" for the past 18 months to two years due to uncertainty about propulsion systems, product development locations, and supply chain management. However, the current environment has provided the certainty needed for customers to make investment decisions.
"Whether we like the current environment or not, we've got certainty. What we are seeing is customers, against that uncertainty, make decisions which prompt an investment," Harris noted, highlighting how this shift is driving confidence for Q4 and the next fiscal year.
ES-Tech Acquisition Impact
The company's 75 million euros acquisition of Germany-based ES-Tech GmbH and its subsidiaries is expected to contribute significantly to growth momentum. Harris outlined the acquisition's financial contribution:
| Acquisition Details | Value |
|---|---|
| Acquisition Cost | 75 million euros (over Rs 775 crore) |
| Expected Additional Business | USD 40 million |
| Growth Expectation | Continued expansion beyond initial contribution |
Operational Strategy and Workforce Planning
Regarding human resources, Harris indicated that the company currently has sufficient resources to begin the fiscal year but expects to add headcount as anticipated growth materializes. Despite heavy investments in AI technology, the company does not plan material retrenchments and will drive incremental growth complementing its AI and digital investments.
The CEO emphasized that Tata Technologies has been investing heavily in reskilling teams to match market demand while maintaining lean operations in terms of overhead and bench strength.
Government Support and Industry Outlook
Looking toward the upcoming Union Budget, Harris expressed appreciation for government support of the manufacturing and automotive sectors. He hopes for continued backing that has been "accelerating not just the size of the manufacturing sector, and specifically the automotive sector, but also the maturity of the industries here in India."
The company expects volume growth to translate into significant margin improvement, positioning for strong performance in both top-line and bottom-line metrics in the coming fiscal year.
Historical Stock Returns for Tata Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.83% | +1.69% | -0.88% | -8.11% | -17.69% | -49.92% |
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