Tata Technologies Eyes Growth Recovery by Q2 FY26 Amid Tariff Concerns

CEO Warren Harris says clarity on US trade pacts will revive product investments​

New Delhi, May 18 – Tata Technologies Ltd, a global player in product engineering and digital services, expects to return to healthy growth by the second quarter of FY26, following a challenging year marked by market uncertainty and geopolitical disruptions. CEO and Managing Director Warren Harris shared this outlook while addressing the impact of recent global trade developments.

Harris said the company entered the new financial year on an optimistic note, buoyed by improving customer sentiment and revived project discussions. However, optimism was short-lived as a fresh wave of uncertainty was triggered by US President Donald Trump's surprise tariff announcement.

“Almost within the first week of the new fiscal year, the new US president announced the tariff shock, which has really prompted everybody once again to revisit their plans,” Harris noted.

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Despite the short-term turbulence, Harris remained confident that the situation would stabilize. He anticipated that bilateral trade agreements between the US and its partners would soon be reached, allowing customers to resume delayed product investment decisions.

“We think we will see a return to healthy growth as early as the second quarter. The first quarter is going to be impacted by the announcement and the fact that negotiations will continue between the US and its different partners,” he added.

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Market Softness and Regulatory Uncertainty​

Over the past 12 months, Tata Technologies has contended with broader market softness. Harris explained that many clients were hesitant to invest due to uncertainty over the US elections and the lack of clarity on preferred propulsion systems in Europe.

In Q4 FY25, the company faced additional headwinds stemming from tariff concerns and sluggish regulatory progress in the European market.

“We were up against a lot of customers that were delaying decision-making and were in some respects not ramping up in the way that we wanted,” he said.

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Strong Order Book Bolsters Confidence​

Despite recent setbacks, Tata Technologies continues to draw strength from a robust order book. Harris cited key wins from the previous fiscal year, including a major deal with BMW, a USD 50 million contract, and several others valued above USD 20 million.

“Our order book is relatively healthy and that was one of the reasons we were confident coming into this fiscal year,” Harris said.

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Looking ahead, the company expects trade negotiations in the US to yield breakthroughs in May and June, paving the way for renewed customer investments.

“We do really believe that given the order book that we have got, and the fact that our customers have to start investing in new products soon, we anticipate that Q2 will certainly be better than the first quarter and we will see growth from there,” Harris concluded.

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Tata Technologies remains cautiously optimistic as it navigates ongoing global trade dynamics, with hopes pinned on quick resolution of uncertainties and the revival of product development pipelines.