Tata Technologies Ltd, a global product engineering and digital services firm, anticipates a return to healthy growth by the second quarter of FY26, driven by pent-up demand and anticipated trade agreements. CEO and Managing Director Warren Harris expressed optimism despite US tariff uncertainties, stating that the company expects clarity in trade negotiations to fuel recovery.
Market Challenges and Recovery Outlook
Harris acknowledged that softness in the market over the past 12 months had impacted investment decisions, particularly due to uncertainty surrounding the US elections and regulatory shifts in Europe. However, he noted that customers were beginning to regain confidence, leading to encouraging discussions on new product investments.
“We anticipate that as soon as there is clarity, given the build-up of demand for new product investments, we will see a return to healthy growth as early as the second quarter,” Harris stated.
Impact of US Tariff Policies
The recent tariff shock announced by the new US administration has prompted businesses to reassess their investment strategies. Harris emphasized that while the first quarter of FY26 may be impacted, the company expects trade agreements to stabilize the market, paving the way for growth in Q2.
Strong Order Book and Future Prospects
Despite economic headwinds, Tata Technologies maintains a healthy order book, including major deals with BMW and other global clients. Harris highlighted that customers will need to resume product investments soon, reinforcing the company’s positive outlook for the second half of FY26.
As Tata Technologies navigates global uncertainties, its leadership remains confident in sustained growth, backed by strategic investments and evolving market conditions.
