TATATECH

Q1 FY26 Earnings Call: Revenue impacted by external factors

es' Q1 FY26 performance was below expectations due to external factors, with revenue declining 3.2% sequentially to ₹1,244 crore and EBITDA margin contracting by 210 basis points. The Services business, representing 77% of total revenue, declined 5.9% QoQ in INR terms due to delays in ramp-ups of large deals and elongated decision-making cycles, particularly in the North American market. The Technology Solutions business grew 7.3% QoQ, driven by a recovery in the education vertical, while the Aerospace segment delivered a standout 13% sequential revenue increase.