Analysts divided on Tata Technologies despite Q4 profit jump

The shares of Tata Technologies Ltd were trading at ₹707.50 up by ₹14.30 or 2.06 per cent on the NSE today at 11.35 am.

Leading brokerages have issued mixed ratings on Tata Technologies following its Q4FY25 results. Goldman Sachs maintained a “Sell” rating with a target price of ₹550, citing that while Q4 results were in-line, the profit beat was primarily driven by higher other income from foreign exchange gains, investment returns, and interest income.

JP Morgan kept its “Underweight” stance with a target price of ₹630, describing the quarter as “mixed” with revenue missing expectations but margins aligning with forecasts. The firm noted that revenue declined 3.3 per cent quarter-on-quarter (q-o-q) on a constant currency basis, falling 350-380 basis points below consensus and JP Morgan estimates.

Management indicated a soft start to FY26 but highlighted positive client conversations in Q4 regarding potential pickup in automotive ER&D spending beginning in Q1 FY26. On a positive note, JP Morgan reported that the BMW joint venture is ramping up ahead of schedule.

Tata Technologies reported Q4 dollar revenue of $148.3 million, down 4.8 per cent q-o-q and 5.3 per cent y-o-y, missing expectations of $150.3 million. However, net profit rose to ₹188.9 crore against analyst expectations of ₹168.4 crore. The stock currently trades at a P/E of 36.9x FY26E EPS with a current market price of ₹693.