Shares of Tata Technologies soared over 11% on Tuesday after the firm announced fourth quarter results ((Q4FY26) for the previous fiscal and dividend on Monday.
Tata Technologies share price advanced 11.6% intraday to Rs 659.8 apiece. The scrip was trading 9.47% higher by 10:06 a.m. The benchmark NSE Nifty 50 was down 0.51%.
The company announced its January-March quarter results on Monday, May 4, reporting a surge in net profit to Rs 204 crore, compared to Rs 6.6 crore in the preceding October-December quarter. The Tata Motors subsidiary's massive surge in net profit on a sequential basis came after the IT services company narrowed the impact of one-time labour cost to Rs 56 crore, from Rs 140 crore in the December quarter of FY26. Revenue from operations in the fourth quarter of FY26 rose 15% to Rs 1,572 crore, compared to Rs 1,366 crore in the preceding December quarter.
The board also declared a final dividend of Rs 8.35 per share and a special dividend of Rs 3.35 per share for the fiscal ending March 31, 2026. The dividend will disbursed within 30 days of the company's annual general meeting.
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Should You Buy Or Sell?
Sharing review of Tata Technologies Q4 show, Goldman Sachs hiked the target price on the stock to Rs 470, marking a 4.4% upside from the previous target of Rs 450. The brokerage, in its recent note maintained a 'Sell' call on the stock, while highlighting that Q4 results were in-line with estimates.
On outlook for the current fiscal, the note said that pent up new vehicle development programs which were stalled in FY26 due to tariff related uncertainties should come back in FY27, estimating a double digit organic growth. Margin expansion is expected largely from better employee utilisation, employee pyramid adjustments and Al related operating efficiencies. Meanwhile, large new EV product development write downs at Stellantis, GM, Ford, Renault are unlikely to cause any meaningful pressures, Goldman Sachs said.
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