Tata Technologies will report its earnings for the quarter ended September on October 28.

What Happened: The Tata Group company informed the exchanges on Tuesday that a meeting of the board of directors of Tata Technologies is scheduled to be held on Monday, October 28, to declare the firm’s financial results for the September quarter.

What To Expect: Kotak Securities expects Tata Technologies to post a 3.1% quarter-on-quarter revenue growth for its services segment on a constant currency basis and a 2.4% sequential growth overall in Q2FY25.

The growth in the services segment is likely to be driven by the ramp-up of anchor clients and increased demand in the aerospace vertical, the brokerage said.

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The analysts also anticipate a modest 10 basis points quarter-on-quarter expansion in EBIT margins, supported by operational efficiencies, though partly offset by the impact of wage hikes.

The brokerage said it will take note of Tata Tech's focus on the medium-term outlook for spending by anchor clients and Tata Group entities, the ramp-up in Airbus engagements and the potential impact of reduced aircraft deliveries. The brokerage expects the company to report a revenue of ₹1,325.8 crore and a net profit of ₹171.7 crore.

ICICI Securities has built in a 1.6% sequential revenue growth for Tata Tech in constant currency terms, with 2% growth expected from the services business (which accounted for 78% of Q1FY25 revenue) and flat growth in the technology solutions segment (22% of revenue), partly due to volatility in the education business.

ICICI Securities expects a flat EBIT margin sequentially, mainly due to the onshore-focused nature of deals, and mentions that a wage hike is likely in October 2024. The brokerage firm expects the company to post a revenue of ₹1,293.9 crore with a net profit of ₹167.5 crore in the second quarter.

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