Tata Technologies shares rise as net profit up 5%; should you buy, sell, or hold?

Tata Group's Tata Technologies shares were in the green on Tuesday, July 15, after the firm posted its earnings show for the quarter ended June 30, 2025.

Tata Technologies reported a net profit of Rs 170.28 crore for Q1 FY26, reflecting a year-on-year increase of nearly 5 percent from Rs 162 crore in the same quarter last year. However, on a sequential basis, net profit declined by around 10 percent from Rs 189 crore in Q4 FY25.

Revenue from operations fell 2 percent year-on-year to Rs 1,244 crore, compared to Rs 1,269 crore in Q1 FY25. Sequentially, revenue dipped over 3 percent from Rs 1,286 crore reported in the previous quarter.

Operating EBITDA for the quarter stood at over Rs 200 crore, with an EBITDA margin of 16.1 percent. The company’s workforce grew to 12,505 employees, while the voluntary attrition rate (LTM) was reported at 13.7 percent.

In constant currency terms, revenue dropped by over 5 percent year-on-year to $145.3 million in Q1 FY26 from $152.1 million a year ago.

At 9.17 am, shares of the firm were quoting Rs 726, higher by 1.3 percent on the NSE.

Should you buy, sell, or hold shares of Tata Technologies?

Goldman Sachs has maintained a 'sell' rating on Tata Technologies with a target price of Rs 560 per share. The brokerage noted that Q1 results were broadly in line with estimates, although revenue declined 4.6 percent quarter-on-quarter in constant currency terms. EBITDA margin missed expectations by 80 basis points, attributed to weaker performance in core services and negative operating leverage.

However, the management expects a sequential revenue recovery in Q2, driven by improved customer engagement and deal wins in June. Importantly, the company’s guidance for Q2 growth is not contingent on any resolution of tariff-related issues.

International brokerage JP Morgan also kept its 'underweight' rating intact, cutting its target price to Rs 570 per share, following the first quarter earnings show.

Follow our live blog to catch all the market updatesDisclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.