Tata Technologies Sinks 44% Below IPO Price In Two Years; SEBI RA Flags Weak Growth, Bearish Charts
Synopsis
The company is facing slowing sales, shrinking margins, and flat profits, with the analyst warning the stock’s downtrend could persist unless the company revamps its growth strategy.
Tata Technologies’ blockbuster 2023 IPO, the first big Tata Group listing in nearly 20 years, had investors rushing in on brand trust and market buzz. But two years later, the excitement has worn off, with the stock now trading about 44.66% below its listing price.
SEBI-registered analyst Mayank Singh Chandel said the company is grappling with falling sales, thinner profit margins, and slower growth than in earlier years.
Q1 Financials Spark Concern
In the first quarter, Tata Technologies posted revenue of ₹1,244 crore, down 3.2% from the previous quarter and 4.6% after adjusting for currency. EBITDA margin slipped to 16.1%, a drop of 2.1 points due to tougher market conditions.
Profit before tax came in at ₹233 crore, down 10% from Q4 but up 6% year-on-year. Net profit fell 9.8% sequentially to ₹170 crore, though it was still 5.1% higher than a year ago.
How Does Tata Tech Stack Up Against Peers?
Chandel compared the performance to KPIT Technologies, another auto tech player that has grown profits by roughly 40% in the past five years.
In contrast, Tata Technologies’ profits have stayed mostly flat, which he said shows the company may need to rethink its approach to drive faster growth.
Technical Charts Signal Caution
On the charts, Chandel noted the stock tried to break past its previous swing high in May 2025 but failed, and has since slipped back into a downward trend.
With the chart still looking bearish, he said Tata Technologies must focus on turning around its business performance and delivering stronger growth to win back investor confidence.
What Is The Retail Mood?
On Stocktwits, retail sentiment was ‘neutral’ amid ‘low’ message volume.
Tata Technologies’ stock has declined 25.4% so far in 2025.
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