Motilal Oswal Recommends 'Sell' on Tata Technologies, Sets Target at INR 550

• Tata Technologies (TTL) reported Q3FY26 revenue of USD 153 million, a 2.3% QoQ increase in constant currency, exceeding estimates.
• Services segment revenue grew 3.8% QoQ in constant currency to USD 118.6 million.
• EBIT margin declined by 190 basis points QoQ to 11.5%, aligning with Motilal Oswal's forecast.
• Adjusted PAT fell 18% QoQ and 19% YoY to INR 1,350 million, missing estimates.
• Motilal Oswal views TTL's valuation of 33x 12-month Forward P/E as premium relative to its growth and peers, reiterating a 'Sell' rating with a target price of INR 550.

Why It Matters: Motilal Oswal advises selling Tata Technologies shares, citing high valuations and setting a target price of INR 550.