Tata Technologies Limited (NSE:TATATECH) Analysts Are Cutting Their Estimates: Here's What You Need To Know

It's been a good week for Tata Technologies Limited (NSE:TATATECH) shareholders, because the company has just released its latest annual results, and the shares gained 3.2% to ₹706. Tata Technologies reported in line with analyst predictions, delivering revenues of ₹52b and statutory earnings per share of ₹16.66, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the eleven analysts covering Tata Technologies are now predicting revenues of ₹54.3b in 2026. If met, this would reflect a credible 5.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 9.2% to ₹18.22. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹58.4b and earnings per share (EPS) of ₹19.65 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

See our latest analysis for Tata Technologies

It'll come as no surprise then, to learn that the analysts have cut their price target 11% to ₹654. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Tata Technologies at ₹1,050 per share, while the most bearish prices it at ₹500. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Tata Technologies' revenue growth is expected to slow, with the forecast 5.0% annualised growth rate until the end of 2026 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that Tata Technologies is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Tata Technologies. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Tata Technologies' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Tata Technologies going out to 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.