Tata Technologies expects 'very strong' FY26 despite global uncertainties

CEO Warren Harris said global automakers are resuming investment decisions despite geopolitical uncertainty, boosting confidence of double-digit growth for Tata Technologies in the next fiscal year

With international automakers deciding to go ahead with their investments despite uncertain global geopolitical and economic environment, Tata Technologies Ltd is looking forward to a "very strong year" in the next fiscal from an aggregate growth perspective, according to its CEO and MD Warren Harris.

The company - a global product engineering and digital services firm, which had last year acquired Germany-based ES-Tech group, also expects the acquired entity to add to its overall growth trajectory, Harris told PTI in an interview.

"The automotive business specifically is a product-driven business, and because of the uncertainty in the last 18 months to two years, a lot of our customers, not just in North America, but also in Europe, have been sitting on their hands because they have not been sure about which propulsion system they should invest in, where they should be building product and how they should be managing their supply chains," he said.

At least now, Harris said,"Whether we like the current environment or not, we've got certainty. What we are seeing is customers, against that uncertainty, make decisions which prompt an investment, and that's what we're looking to. That's what we are intersecting with, and that's what's inspiring the confidence that we've got about Q4 and the next fiscal year."  He was responding to a query on the growth outlook in the midst of tariff wars and geopolitical uncertainty.

For FY26, he said,"We will look to drive sequential double-digit growth (from) Q3 to Q4 and then we expect double digit growth organically next year."  In the third quarter ended December 31, 2025 the company had posted a consolidated revenue from operations at Rs 1,365.73 crore as against Rs 1,317.38 crore in the year-ago period.

Referring to the company's 75 million euros (over Rs 775 crore) acquisition of Germany-based ES-Tech GmbH and its subsidiaries last year, Harris said,"...that will represent about USD 40 million of additional business for us and we expect that business to grow...In addition to the organic double-digit growth, that business will be included in our numbers."  Noting that the company expects volume to translate into significant margin improvement, he said,"We are looking at a very good year next year, both top line and and bottom line."  When asked about possible hiring to meet growth expectations, Harris said,"As we move into the year (next fiscal), we don't need any more resources, but as we move through the year and as the anticipated growth continues, then we will need to start to add headcount."  Despite the company investing very heavily in AI, he said,"We do not need to do any retrenchments in a material way, and we will drive incremental growth next year but it will be in a way that will complement the investments we are making in AI and digital."  The company has been investing very heavily and reskilling its teams to ensure that the capability matches the demand in the market, Harris said, adding "we have been relatively lean in terms of things like overhead and bench".

On the expectations from the upcoming Union Budget, he said the government has been very supportive of the manufacturing sector and specifically the automotive industry and the company would like to see the government continue the support they provided for those sectors.

"It is really accelerating, not just the size of the manufacturing sector, and specifically the automotive sector, but also the maturity of the industries here in India," Harris noted.