Tata Technologies shares jump 11% after strong revenue growth fuels Q4 earnings; what analysts say

Tata Technologies' share price jumped 11% to its intraday high level during the early trading hours on Tuesday, May 5, after the company recorded strong revenue growth in the March quarter results, which in turn supports the profits for the period.

Shares of Tata Tech surged 10% to its intraday high of ₹657 on Tuesday’s market session, compared to ₹591.05 at the previous stock market close, according to NSE data.

The company’s consolidated financial statements showed that the net profit after tax (PAT) advanced by 8.1% to ₹204.17 crore, compared to ₹188.87 crore in the same period a year ago.

Tata Technologies' revenue from core operations witnessed a 22.29% growth to ₹1,572.22 crore in the fourth quarter of the fiscal year ended 2025-26, compared year-on-year with ₹1,285.65 crore in the same period a year ago.

The IT-enabled services company posted a 15.1% sequential rise to its fourth quarter levels, compared to ₹1,365.73 crore in the same period a year earlier.

What analysts say

Experts from the global investment giant, JP Morgan, said that the revenue growth in the March quarter was the “strongest” in the IT/ERD earnings season due to the deal ramp-ups for the company and Jaguar Land Rover (JLR) returning to a normal run-rate.

Looking ahead, JP Morgan analysts also predicted that the FY2027 revenues in constant currency are set to witness double-digit growth to the tune of 10%, despite the potential headwinds from the West Asia conflict.

“FY27 org CC revenue growth guide at double digits (10%) should be easily achievable given strong exit rate (5%), which makes ask rate low at 1.5% CQGR,” said the analysts.

Analysts from Goldman Sachs said that Tata Tech’s margins are expected to expand largely based on better employee utilisation, employee pyramid adjustments and AI-related operating efficiencies.

“Short-term blip in BMW profit contribution is down to year end cost allocation & is unlikely to pause underlying sequential profit growth,” said Goldman Sachs experts.

The company also recommended a dividend issue for the financial year ended 2025-26 in its quarterly meeting held on May 4.

Tata Tech dividend issue

Tata Technologies board of directors considered and recommended a combination of a final dividend and special dividend, aggregating to ₹11.70 per equity share with a face value of ₹2 apiece.

“Recommend a final dividend of ₹8.35 and one-time special dividend of ₹3.35, aggregating to ₹11.70 per equity share of ₹2 each of the company for the financial year ended March 31, 2026, subject to tax,” the company informed the stock exchanges.

This shows that every eligible shareholder will receive a dividend payment of ₹11.70 per equity share for every stock they own in Tata Technologies, up to 24 hours ahead of the pre-determined record date of the corporate action.

If approved, the board will announce the record date after the upcoming AGM, and the payment will be cleared within 30 days of the meeting.