Tata Technologies Q2: Revenue Rises 28%, Profit Grows 4%

Tata Technologies (

) reported a mixed Q2 FY27 performance, with strong revenue growth but a comparatively modest increase in net profit. The results reflect improving business momentum, but Goldman Sachs and JM Financial remain cautious about the stock’s valuation and the sustainability of future growth. Key Q2 FY27 Highlights * Revenue from operations rose 28% year-on-year to ₹1,699 crore. * Net profit increased 4% to ₹171 crore, compared with ₹166 crore a year earlier. * Services revenue grew 34% to ₹1,356 crore. * Operating EBITDA increased 32% to ₹273 crore. * EBITDA margin expanded 40 basis points year-on-year to 16.1%. * Services revenue grew 4.3% quarter-on-quarter in constant-currency terms to $142 million. Why Are Brokerages Still Bearish? Goldman Sachs maintained its Sell rating, although it raised its target price to ₹560 from ₹540. It noted that Q2 performance was broadly in line with expectations and highlighted the expected revenue ramp-up from a $138 million deal with a European luxury automaker in the second half of FY27. JM Financial retained its Reduce rating with a ₹735 target price, citing concerns around German automotive demand, the technology segment and the margin trajectory. It also believes expectations from large deals are already reflected in the stock’s valuation. My View Tata Technologies is showing encouraging revenue momentum, supported by its services business and large-deal pipeline. However, the gap between revenue growth and profit growth deserves attention. The next phase depends on converting new contracts into sustainable revenue while protecting margins. Investors should track automotive-sector demand, execution of large programmes, constant-currency growth and profitability. Strong quarterly growth is positive, but the investment case also depends on how much future growth is already priced into the stock.