1. Opening Hook
After two quarters of corporate yoga—stretching, balancing, and deep breathing—Tata Tech finally stood upright. The engineers reclaimed their swagger, the CFO stopped whispering “macros are bad,” and the CEO brought out his British calm to remind everyone that resilienceisn’tjust a PowerPoint slide. Between cyberattacks, wage hikes, and JLR’s tech meltdown, the quarter looked like a bad Formula E pit stop—but somehow, the car finished strong.
Now, before you think it’s all torque and no traction, the fun begins when you see how Germany, batteries, and AI have joined the party. Buckle up—this ride gets smoother (and slightly sarcastic) as it goes.
2. At a Glance
- Revenue up 6.4% QoQ:Apparently, Excel sheets also believe in comebacks.
- Services biz +5.1%:Engineers finally put down their coffee and picked up projects.
- EBITDA margin 15.7%:Cyberattacks may steal data, but not determination.
- Adjusted margin 16.4%:The “real” number after cleaning cyber dust.
- PAT ₹165 crore (↓3% QoQ):Profit took a Diwali break early.
- Net cash $123 million:Still richer than half the startups on LinkedIn.
- Attrition 15.1%:Engineers flirting with GCCs again. 😏
3. Management’s Key Commentary
“This quarter marks a return to sequential growth and reaffirmation of resilience.”(Translation: We were tired of reporting ‘flat’ like a broken oscilloscope.)
“Aerospace and Industrial Heavy Machinery grew 14%.”(Translation: Planes and cranes kept flying while cars kept yawning.)
“Automotive vertical regained momentum with 0.5% growth.”(Translation: Blink and you’ll miss it, but technically it’s ‘positive’.)
“EBITDA improved post cyber incident expenses.”(Translation: Hackers took a bite, but not the whole sandwich.)
“We signed an agreement to acquire ES-TEC in Germany.”(Translation: Finally, a German partner who won’t ghost us after due diligence.)
“Digital Key feature lets phones act as smart car keys.”(Translation: Lose your phone, lose your car, lose your mind.)
“Attrition rose modestly to 15.1%.”(Translation: GCCs are raiding our talent pool again, but we’re still smiling.)
“JLR’s IT systems are being restored carefully.”(Translation: We’re helping the cousin who broke his own laptop.)
“We’re cautiously optimistic about Q4 rebound.”(Translation: Q3 will test our patience, Q4 will test your valuation model.)
4. Numbers Decoded
| Metric | Q2 FY26 | YoY / QoQ Change | One-Line Analysis |
|---|---|---|---|
| Revenue | ₹1,323 Cr | +6.4% QoQ / +4.5% CC | Growth is back on the CAD file. |
| Services Revenue | ₹1,013 Cr | +5.1% QoQ | 77% of business, finally moving. |
| Tech Solutions | ₹310 Cr | +10.6% QoQ | Education + delayed projects saved the day. |
| EBITDA Margin (Reported) | 15.7% | Flat-ish | Cyber expense hurt, engineers healed. |
| EBITDA Margin (Adjusted) | 16.4% | +30bps QoQ | Quiet improvement hidden in footnotes. |
| PAT | ₹165 Cr | -3% QoQ / +5% H1 YoY | Profit curve mimics a sine wave. |
| DSO | 109 days | ↑ from 87 days | Clients treating invoices like love letters—never replying. 💌 |
| Net Cash | $123 Mn | ↓ from $159 Mn | Still zero debt, so peace of mind = intact. |
| Headcount | 12,402 | Flat QoQ | Hiring pause, training boom. |
| Attrition | 15.1% | +130 bps | HR’s stress graph matches the attrition chart. |
TL;DR: Tata Tech rebooted faster than JLR’s servers.
5. Analyst Questions
Q (Goldman Sachs):Education business rebounded—how big was the deal?A (Warren):“Some delay in innovation centers, now back online.”(Translation: Government paperwork moved, miracles happened.)
Q (Axis Capital):“Will Q4 match this growth?”A:“Clarity on tariffs means customers are back to spending.”(Translation: Trump tariffs hurt feelings, not forecasts.)
Q (JM Financial):“Impact from JLR IT outage?”A:“We’re helping them restore systems—too early to size the pain.”(Translation: Please don’t make us say ‘downside risk’ aloud.)
Q (Win Investments):“Aerospace focus?”A:“Structures, interiors, propulsion—basically everything that flies.”(Translation: From nuts to NASA, we’re in.)
Q (Tata Capital):“Margins post wage hike?”A:“88% got raises; we’ll offset through levers.”(Translation: Hello overtime, goodbye coffee machines.)
6. Guidance & Outlook
Management expectsQ3 to be seasonally soft, thanks to wage hikes,
