Tata Tech shares rise 3% after €75 million acquisition of Germany’s ES-Tec Group

Tata Technologies Ltd’s shares surged 2.7% to their intraday high of Rs 721 on the BSE on Monday, September 15, after the company announced it will acquire ES-Tec Group of Germany for a total cash consideration of €75 million The deal was announced over the weekend.

The acquisition is expected to be accretive to Tata Technologies’ earnings per share from the first full year after completion. The transaction is likely to close by December 31, 2025. The payment will be spread over the next two years and will include performance-linked payouts.

According to the company, the deal strengthens its engineering, research and development (ER&D) capabilities, particularly in next-generation mobility technologies. It also expands its presence in Germany, giving it access to a strong talent pool in systems engineering.

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The acquisition is expected to bring opportunities for cross-selling, leveraging complementary client bases and tapping into original equipment manufacturer (OEM) accounts. ES-Tec’s established presence in Germany—one of the world’s most advanced automotive innovation hubs—provides Tata Technologies with a strategic platform to scale its ER&D operations, and access top-tier engineering talent, the company said in an exchange filing.

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“ES-Tec’s technical depth, customer centricity and regional strength align perfectly with our strategic vision to be the first partner choice for global OEMs navigating the shift towards intelligent, connected and sustainable mobility,” Warren Harris, MD & CEO of Tata Technologies, said.

ES-Tec provides high-end automotive engineering services with expertise in advanced driver-assistance systems (ADAS), connected driving and digital engineering.

Q1 snapshot

The company reported a 5% year-on-year (YoY) growth in its Q1FY26 consolidated net profit to Rs 170 crore as compared to Rs 162 crore posted in the year-ago period. The given net profit is attributable to the company’s owners.

The revenue from operations declined 2% YoY at Rs 1,244 crore versus Rs 1,269 crore in the year-ago period.

The company’s profit after tax (PAT) fell 10% sequentially from Rs 189 crore reported in the January-March quarter, while the topline declined nearly 3% to Rs 188.87 crore reported by the company in Q4FY25.

Shares of Tata Technologies ended flat on Friday at Rs 702.85. The stock is down 21% so far in 2025, 50% off its record high of Rs 1,400, but still above its IPO price of Rs 500.

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