Tata Tech shares plunge 6% post Q4 results; here’s why

Shares of Tata Technologies declined over 6% on Tuesday even after the Tata Group firm reported healthy financial performance in March quarter and also declared final dividend for the financial year 2024-25. The counter witnessed surge in selling activity amid report that private equity firm TPG Rise Climate sold 1.6 crore shares, representing a 3.95% equity stake in Tata Tech, via block deal. The deal value is estimated to be around ₹1,094 crore at a stock price of ₹683 apiece.

Early today, Tata Technologies shares opened 2.96% lower at ₹685 on the BSE, after ending 1.83% higher in the previous session. In the first two hours of trade so far, the Tata group stock declined as much as 6.2% to hit a low of ₹662.75, while its market capitalisation slipped to ₹27,100 crore. The counter saw strong volume as 62.55 crore shares changed hands over the counter as compared to two-week average of 1.86 lakh stocks.

Earlier this month, Tata Tech shares slipped to its 52-week low of ₹595.05 on April 7, 2025, falling 47.5% from its 52-week high of ₹1,135 touched on September 20, 2024. The midcap stock has delivered negative return of over 37% in the last one year, while it has lost 33% in six months, and nearly 3% in a month. In the calendar year 2025, the technology stock has fallen 25%.

Tata Tech Q4 profit jumps 20%

In a post-market release on April 28, Tata Tech reported 20.12% year-on-year (YoY) jump in its consolidated profit after tax (PAT) at ₹189 crore as compared to ₹157 crore in the year-ago period.

However, the revenue from operations declined 1.2% to ₹1,286 crore for Q4FY25, from ₹1,301 crore in the same quarter of the previous financial year.

For the full financial year FY25, global product engineering and digital services firm logged a consolidated profit of ₹676.95 crore, which was marginally down from ₹679.37 crore reported in the previous fiscal. Similarly, the total income stood at ₹5,292.58 crore, compared to ₹5,232.75 crore in FY24.

The board of the company also proposed a final dividend of ₹8.35, along with a one-time special dividend of ₹3.35, totaling ₹11.70 per equity share for the financial year ending March 31, 2025. This will result in an estimated cash outflow of around ₹474.63 crore.

JM Financial maintains ‘BUY’ call post Q4

Post Q4 results, JM Financial maintained ‘BUY’ call on Tata Tech with a target price of ₹850 per share. The brokerage has lowered growth expectations due to uncertain macro, challenging demand environment and caution among auto clients. “Our YoY cc growth expectations have been lowered by 174-112 bps over FY26-27E. As a result, our revenue expectations for FY26FY27E have been lowered by 2.0%-2.9%.”

“Our PAT estimate for FY26 has been revised higher by 1.6%. Higher margin estimates and higher contribution from BMW JV lead to increase in PAT estimates despite slower growth. FY27 PAT estimates have been revised lower by 3%,” the brokerage said in a report.

Tata Tech has indicated continued caution among auto clients, but outlook in aerospace remains strong, as it expands footprint beyond Airbus to its supply-chain providers. The joint venture with BMW is progressing ahead of expectations, which could help in making further in-roads in other German OEMs, as they look to offshore more – a prospect looking increasingly probable, JM Financial said in its report. It would also help in navigating twin challenges of Chinese competition and U.S. tariffs.

Overall, the brokerage expects sequential growth to progressively improve through the quarters. In tech solutions, the company believes growth to gradually recover (likely Q2) and build momentum through the second half of the current fiscal. Margin outlook remains stable. 

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