Tata Technologies · forward-looking guidance across the available source record.
Guidance tracker
Management reiterated guidance for strong double-digit organic revenue growth for FY27 with services as primary growth engine. Growth is expected to accelerate in H2 as large strategic deal ramps reach steady state.
Despite Q2 wage increase headwinds, management expects QoQ margin expansion to continue through the year supported by operational discipline, execution, and delivery productivity improvements.
Warren Harris indicated aerospace vertical could trend toward $100 million target in the next 2-3 years, building on ~40% CAGR achieved over past 4-5 years, driven by Airbus supplier relationships and growing propulsion business in North America.
The $100 million strategic engagement with Tenico began execution in Q2, will ramp through the fiscal year toward end of calendar year, and is structured as a five-year deal with majority being new business.
Management expects strong rebound in Q4 driven by recent deal wins, EZACT contribution, and normalization of customer operations, including catchup from JLR cyber incident disruption.
Despite impact from new labor codes (one-time ₹140 crore provision in Q3), margins are expected to recover and expand above Q2's 16.4% as wage hike headwinds normalize.
Management explicitly confirmed the FY27 double-digit growth target is entirely organic, with EZACT contribution addressed separately from this baseline.
Aerospace business has doubled revenues for four consecutive years from a low base, with strong pipeline visibility and momentum expected to continue.