Tata Tech Q4 Review: A Muted Quarter Offset Partially By Traction In BMW JV, ICICI Securities Maintains 'Sell'

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ICICI Securities Report

Tata Technologies Ltd. has reported a sharp QoQ revenue decline of 4.7% USD in Q4 FY25, similar to revenue contraction reported by Cyient-DET (-3% QoQ) and Tata Elxsi (-5.5%), due to:

1. Sharp drop in technology solutions segment -15.6%,

2. slump in auto segment -2.7%.

A few positives include:

1. Ebit margin expansion of 20bps QoQ,

2. BMW joint venture led PAT margin expansion of 190bps QoQ,

3. positive traction in aerospace segment: - up 8% QoQ.

For FY25, it reported a decline of 1.2% USD, with underperformance prevailing since the VinFast ramp-down. Though aerospace, battery engineering and BMW JV segments are panning out well, we expect a slow recovery from challenges in automotive segment and projectbased nature of Tata Technologies’ technology solutions segment. Maintain Sell at Mar’26E target price of Rs 510 based on one-year forward PE of 25 times.

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