Shares of Tata Technologies Ltd. gained 2.02% to ₹716.25 on Monday, September 15, after the Tata Group company announced the acquisition of Germany-based ES-Tec Group for €75 million (approx. ₹675 crore).
The acquisition, expected to close by December 31, 2026, will be paid in cash over two years and includes performance-based payouts. Tata Tech said the deal will be earnings-accretive from the first full year post completion, with ES-Tec projected to add 8% to the topline.
ES-Tec specializes in high-end automotive engineering services, particularly in ADAS, connected driving, and digital engineering. Tata Tech believes the move strengthens its ER&D capabilities and enhances its presence in Germany, providing access to advanced talent pools.
CEO Warren Harris said the acquisition aligns with the company’s goal of becoming the “partner of choice” for global OEMs navigating intelligent, connected, and sustainable mobility.
Despite the strategic rationale, JPMorgan has maintained an ‘underweight’ rating on Tata Tech, citing expected revenue decline of 4.6% and margin contraction of 100 bps by FY26. The brokerage set a price target of ₹570, pointing to stretched valuations at a 37x forward PE.
At the current price, Tata Tech’s market cap stands at ₹2.91 lakh crore. The stock is down 21% in 2025, nearly 50% off its all-time high of ₹1,400, though it remains well above its IPO price of ₹500.
