Shares of Tata Technologies fell 2% in early trade on June 4 on the back of a block deal that hit the counter, wherein private equity firm TPG likely pared stake in the company. Around 86 lakh shares of Tata Tech, equivalent to 2.1% of the total equity changed hands on the exchanges.
The parties involved in the transaction could not be immediately ascertained. Still, CNBC-TV18 had previously reported of the US-based TPG looking to pare up to a 2.1% stake in Tata Technologies through a block deal. As per the report, TPG was eyeing to offload its stake at an average of ₹744.5 per share, taking on a discount of up to 3% from Tuesday’s closing price.
TPG Rise Climate held a 6.01% stake in Tata Technologies as of the company’s latest March quarter.
The block deal also fired up trading volumes in the counter as one crore shares of Tata Tech changed hands on the exchanges thus far. This represents a meteoric rise in trading volumes when compared with the one-month daily traded average of 26 lakh shares.
At 10.06 am, shares of Tata Tech were quoting ₹757 on the NSE. Tata Tech shares have underperformed the broader market in the last one year, shedding a quarter of its value during the tenure.
The pressure on the stock also stems from its faltering earnings performance amidst a tough macroeconomic scenario for the information technology sector. As for the March quarter, Tata Tech reported a 12% sequential jump in its net profit at ₹189 crore, even though revenue fell 2.4% to ₹1,286 crore.
Meanwhile, the management as well as brokerages sounded caution over headwinds through FY26. In a conversation with CNBC-TV18, Tata Technologies’ Managing Director and CEO, Warren Harris, said the company’s performance in FY26 will largely hinge on broader macroeconomic trends and the level of clarity that emerges over time.
“At the start of the year, we were aiming for double-digit growth in FY26, but we’re mindful of the macro headwinds. Our focus now is on protecting margins,” Harris noted.
Brokerage firm Kotak Institutional Equities which holds a ‘sell’ rating on Tata Technologies, cited a subdued demand environment and slowing revenue growth from key clients as reasons for its cautious stance.
Kotak has also revised its earnings per share estimates for FY26–28 down by 4–7% after Tata Tech’s Q4 results, citing weaker-than-expected performance in the services segment. Furthermore, the management also pointed to recent tariff announcements, which have added to the uncertainty for global original equipment manufacturers (OEMs), causing delays in client decision-making, deal signings, and ramp-ups. It anticipates a sluggish start to FY26, with growth expected to pick up only in the latter half of the year.
