15-Oct-2026 08:04:22
GOLDMAN SACS on Tata Tech : Sell, TP Rs 560
• Reported an in-line 2Q with +1.9% qoq cc revenue growth. Revenue / EBITDA were -1% / -3% vs GSe. • Going forward, management expects sequential growth to continue through year driven by new business wins (secured US$138mn deal from leading luxury European OEM). • Tata expects this deal to start ramping up in H2 FY27. • Despite 3Q27E being a seasonally weak quarter, TATE expects to see sequential margin improvement from the 16.1% EBITDA margin level delivered in 2Q27. • Management noted VW's recent challenges are causing momentum at recently acquired ES-Tec (c10% of revenue) to represent a drag on growth and profitability in near term • Management reiterated organic revenue growth guidance for double digits in FY27
TATA TECHNOLOGIES LIMITED