1. Opening Hook
Q3 is always “seasonally weak,” cybersecurity incidents are always “one-offs,” and margin pain is always “temporary.”
Tata Technologies’ Q3 call had the full greatest-hits album — but with one twist: management sounded unusually confident.
Despite festivals, billing disruptions, wage hikes, and a month of lost revenue at a large client, the company still grew. More importantly, it didn’t panic-cut costs. Instead, it hoarded talent and promised a blockbuster Q4.
The headline claim? >10% sequential growth in Q4 and margins above Q2 levels, all while calling FY27 double-digit growth “organic.”
Either Tata Technologies has cracked the recovery code before peers — or optimism has once again beaten spreadsheets.
Read on. The interesting bits are buried deeper.
2. At a Glance
- Revenue up 3.2% QoQ – In a “worst quarter of the year,” no less.
- Services revenue +4.7% QoQ – The real engine quietly did the heavy lifting.
- EBITDA margin at 14.1% – Salary hikes showed up right on cue.
- Aerospace +19% QoQ – From side hustle to serious growth lever.
- Products +30% QoQ – Year-end budgets doing their annual magic.
- Net profit down QoQ – Exceptional items did exceptional damage.
3. Management’s Key Commentary
“We
delivered growth even in our softest quarter.”
(Translation: Please clap, this wasn’t easy.) 😏
“The cybersecurity disruption is now fully behind us.”
(One month vanished, but let’s never speak of it again.)
“We chose to retain delivery capacity instead of optimizing margins.”
(Margins can wait; bench strength can’t.)
“We expect sequential revenue growth in excess of 10% in Q4.”
(Yes, we know Q4 needs to carry the year.) 😮
“This is not aspirational guidance; it is pipeline-backed.”
(Trust the Excel sheets you can’t see.)
“Aerospace revenues have doubled for four consecutive years.”
(From small base, but still impressive.) 🚀
“FY27 double-digit growth will be organic.”
(And ES-Tec will be the cherry on top.)
4. Numbers Decoded
| Metric | Q3FY26 | QoQ Trend | What It Really Means |
|---|---|---|---|
| Revenue | ₹1,366 Cr | +3.2% | Growth survived disruption |
| Services | ₹1,060 Cr | +4.7% | Core business steady |
| EBITDA Margin | 14.1% | ↓ | Wages hit, no surprise |
| Net Profit | ₹135 Cr | ↓ | Labour codes + ES-Tec costs |
| DSO | 111 days | ↑ | Products & Education dragged |
| Net Cash | $58 Mn | ↓ | Acquisition + provisions |
