Thank you very much. We will now begin the question -and- answer session. We will take our first question from the line of Chandramouli Muthiah from Goldman Sachs. Please go ahead.

Hi, good evening and thank you for taking my questions. My first question is just around the contract which you mentioned. There was some lumpiness and delays in education -related business from the previous quarters. I just want to understand what would be the approximate case of that contract.

I am sorry, your voice is breaking. It is sounding muffled.

My first question is just around the education business. You mentioned that there were delays in education business contract actualization in the past two quarters which has benefited this quarter. I just want to understand what is the sizing of that deal which has benefited this quarter?

In terms of the situation that has played out in education, earlier in the calendar year, there were some delays in terms of getting access to some of the innovation centers that we were equipping with the next -generation capabilities and training curriculum that support our education value proposition. Those centers have now come online and so we have been able to play some level of catch -up in Q2. We also have continued to reinforce our order book. I referenced one deal that we closed in Maharashtra in Q2, but there have been other deals that we have closed. So, we expect continued momentum in tec hnology solutions and specifically in education in the coming quarters.

Just to follow up, I just want to understand, we have seen close to 11% QoQ growth in technology solutions. If it is most of that growth, let us say in terms of quantifying it, all of that growth is due to the lumpiness benefit? I think education and technology solutions is positive in the third quarter and the second quarter. I just wanted to follow up on if any quantification you are able to provide around the lumpiness of this deal?

The improvement was both in products and in education. The first quarter of our fiscal year is typically a soft quarter for products and so we have seen improvement in that. In the second half of the year, as a number of maintenance contracts continue to get refreshed and renewed, the second half of the year is a good seasonal period for our products business. Again, we expect continued growth in education, and we also expect to enjoy the seasonal benefit of the improvement in the second half of the year that typically underpins what happens in products.

Got it. That is helpful. Second question is just around your prepared remarks. We have, I think, done much better this quarter in terms of QoQ growth than the previous two where there were potentially macro headwinds that were delaying decision making at some of our core customers. You did mention that you are cautiously optimistic on the back half. Maybe 3Q will be seasonally weak, but you are hopeful that things pick up in 4Q. I just want to understand, based on some of the recent deal wins, do you think 4Q can be equally as good as this quarter in terms of QoQ growth you have been able to deliver in the core business? Any additional color you are able to provide on what is giving you confidence around potentially better 4Q in this part of the recovery in the cycle?

Just again to provide confidence, in Quarter 1 and at the beginning of the fiscal year, I have commented that we expected strong momentum in this year based upon the conversations that we were having in the fourth quarter of last year. Last year was somewh at unsettled because of the election in the US and some of the EV incentives in Europe running off. So, early part of the calendar year, we had some very, very good discussions with our customers about new products and the contribution that we can make to that. We saw some of that get somewhat undermined by the tariff announcements at the beginning of Q1 that not only impacted the North American manufacturing sector, but also impacted those customers in automotive, aerospace, and industrial heavy machinery that l ooked to sell into the United States because everybody was impacted, I think, in either direct terms or indirect terms through their supply chains. So, what we anticipated in Q1, it started to play out in Q2 because the uncertainty that was there after the tariff announcement is starting to clear and most of our customers are now getting aligned with the new normal in terms of the tariff environment specifically. So, many of those investment decisions that we were looking to intersect with at the beginning of the fiscal year have now come through in Q2, and that is what has largely driven the improvement that we have seen. We expect that to continue. Our customers and the markets that we serve are largely product-led. In all of the sectors, there has been some impact as far as investment – related to some of the geopolitical and the macroeconomic issues. Whilst not everybody will agree with the changes that have been enacted, at least we have got clarity now. Our customers, as a result of that, are returning to making investments in the next -generation products that stimulate the demand that we support. So, we are expecting a continued improvement from the perspective of the needs that our customers are looking to place with us.

Thank you very much and all the best.

We will take our next question from the line of Manik Taneja from Axis Capital. Please go ahead.

Hi. Thank you for the opportunity. I just wanted to get alternative inputs on a couple of things. You are saying that third quarter should probably be soft. Q4 is when you expect a sharp rebound. Just to understand if that comment essentially is on an org anic basis, or even you will probably close this acquisition and thereby that is supporting the revenue growth momentum? That is question number one. The second thing is if you could give us some qualitative sense in terms of our automotive vertical performance between anchor customers and external customers, how they may have done in the second quarter, and how should we be thinking about the prospects between these two segments on a go -forward basis?

Thank you for the question. I think our comments in terms of our opening remarks relate to our organic performance. As has been referenced a couple of times, Q3 is seasonally soft given the festivals and the holidays in different parts of the world. We, like everybody else, are going to be impacted by that. Our commentary is related to seasonal issues and specifically one or two customer situations that we are looking to quantify at this point in time. As far as automotive is concerned, one of the things that was very pleasing in Q2 was that we were able to d rive growth across the three industry verticals. Even though the aerospace and industrial heavy machinery verticals delivered double-digit sequential growth, we were also able to squeeze out growth in automotive. That is really the first time for a number of quarters. We really think that all goes well in terms of the industry and by association, the prospects for Tata Technologies.

Sure. Would it be possible for you to give us some sense on your double-digit aspiration that you had through a better part of this year, do you still think that is a possibility for FY26 or probably given the way we have performed and given your expectations for the third quarter, that expectation may not turn out to be true?

Our aspirations of double -digit growth will always be there. I think at this point in time, our objective and our target will be to ensure that the order book and the momentum that we take into the next fiscal year will provide a platform for double-digit growth in FY27. I think at this stage, I certainly do not want to quantify specifically what we will look to drive in terms of growth in this fiscal.

Sure. The last one is on the BMW joint venture. You achieved the 1K headcount mark much ahead of the initial plan by December. Are you essentially willing to share some more milestones or the progress that you expect on that joint venture over the next couple of years?

What I will say is both in quantitative terms and also in qualitative terms, the JV continues to exceed the expectations of both Tata Technologies and BMW. We have exceeded the headcount targets through the teams that we are managing in the three hubs, in Pune, in Bangalore, and in Chennai. That momentum we expect to continue. I think the brand has really been established now in the Indian context. That is allowing us the opportunity to attract and retain some of the brightest automotive talent in the industry. I think what is also encouraging is the fact that the type of work that is being undertaken by the JV is of a very high level of complexity and sophistication. The feedback from BMW and the teams in Munich specifically is that they are very, very pleased with the work that is being undertaken. I think that augurs well, not only for growth, but the type of responsibility that the JV will increasingly be given.

Sure. Thank you. All the best for the future.

Next question is from the line of Abhishek Kumar from JM Financial. Please go ahead.

Hi. Good evening. Warren, you mentioned in your initial opening remarks that Q3 headwind is because of delays in JLR, IT systems still being restored, etc., Just wanted to understand what is the visibility we have at this stage of these challenges getting resolved during the quarter, and what would be the potential impact from JLR alone in Q3? And a related question is that when we say headwind in Q3, are we referring to some decline in sequential growth or just lower growth for Q3?

I think as far as JLR is concerned, let me just qualify the comments that I made at the beginning. We are very much involved with supporting the phased restoration of the IT infrastructure at JLR, and I am very, very proud of the work that our teams have undertaken to support the ability of JLR to bring back up their production facilities and their core enterprise IT systems. We are working with JLR to ensure that all of our teams that are strategically important to JLR are in a position to continue the contribution that we have now made for many, many years. But the comments that I made is that JLR themselves are still going through, as they bring up their systems, what their short -term priorities are. And whilst they are going through that exercise, I think it is prudent for us to signal that there could be, and I want to stress could be, some impact in the next couple of months. But the visibility on that is something that will only play out in the next two to three weeks. So, right now, I am not in a position to quantify. All that I will say is that we are working hand in glove with the JLR teams. We are doing everything that we possibly can to support their phased deployment of their IT systems, and we are going to do everything that we can to ensure that they are in a position to restore their operations to where it was before the attack.

Yes, and so potentially Q3 can be a negative quarter from services perspective, negative growth quarter?

Again, at this point in time, I am not going to size what the impact of JLR is going to be because I simply do not know. And I think outside of that, we are going to continue to reinforce our support towards growth. And so, we are doing everything that we can to ensure that we build upon the momentum that we have established in Q2.

Sure. My second question is on your acquisition, ES-TEC, looks like a very exciting asset, they are growing very fast. So, what are the kind of synergies we see? Is the buyer of their services versus what we would typically sell to in Volkswagen similar or do we have to leverage on their relationship to bui ld more relationships? And also, Savitha mentioned it is margin accretive. Any color on their margins, because what we have seen is onsite centric, niche firms like this generally are margin dilutive for IT services firms?

Yes, I think what attracted us to the organization were two things. One was the capability that they have at the top end of the automotive V-cycle. They do an awful lot of work in the area of systems architecture, functional and specification definition. And they do a lot of work in and around test and validation. And to your point, that is very high end and very niche and complex work. And they have not only been able to protect themselves during the recent downturn and continue growth, but they have also been able to reinforce their strategic position as far as the VW ecosystem is concerned. Because of that special position, they have a great deal of influence at the top end of the VW group. And certainly, we are expecting that influence and the trust and confidence that VW has in them to influence our ability to be able to sell the broader Tata Technologies portfolio to VW. And one of the things that we are working very hard on right now is to identify what lines of service we should prioritize as part of that pursuit of synergies. As far as margins and growth are concerned, we expect ES -TEC to continue the momentum that they have established. We are not disclosing the specific margins that they support. But we do not expect any impact upon the unit economics of that asset as a result of the transaction.

Sure. Thank you and all the best. Thank you.

Yes. Hi, this is Puneet. I wanted to ask a few questions regarding the aerospace division, which we look forward to knowing what exactly is the core we plan to explore in the aerospace division, like, is it more about the passenger vehicle segment or any other segment where we eye to venture into?

Well, if you look at aerospace, there are a number of domain areas that we are developing capability in. We are developing capability in aero structures and interiors. We are developing capability in propulsion systems. We are developing capability in MRO systems. And we are also leveraging our experience from automotive and industrial heavy machinery to help aerospace customers deploy digital solutions to address one of the big challenges of the industry, which is manufacturing throughput. And so, we are investing in those areas and we are seeing double -digit growth across all of those domains. We have not only built a relationship that we are very proud of at Airbus, but we are growing within the Airbus supply chain. And we are also investing very heavily in North America, specifically with the propulsion system manufacturers. So, there is an area that has demonstrated growth whilst automotive and industrial aerospace has been somewhat flat. And we expect that to continue. We are confident because of the growth that is projected for aerospace. But we are also confident because India specifically and the Tata Group will play a very big part in the aerospace industry in the future. And we intend to take full advantage of the opportunity that that represents.

Thank you very much. I will go to my next question. In the coming years, once the tariff and everything is settled down, how do you see the aerospace affecting or making its mix in our revenue structure ahead?

I think that the OEMs will have to factor their sourcing decisions and their supply chain decisions against the impact of tariffs. But I think if you were to canvas opinion from the big players, Airbus and Boeing and their associated supply chains, I think while tariffs are important, building as many aircraft as the demand requires at the moment is an even greater priority. And so, our view, and I think this is the view of the industry, is that accessing capability will be more important tha n the implications of some of the recent tariff regulations that have been rolled out.

Okay. Thank you very much. I am done.

We will take our next question from the line of Rohit Jain from Tata Capital Partners. Please go ahead.

Yes. Hi. Thanks. My first question is on attrition. Attrition levels have moved up noticeably from last quarter to this quarter and are at multi -quarter highs. So, what are your thoughts there? And the second question is on margin. You highlighted that there is going to be margin impact in the coming quarters because of wage hike. Can you help quantify that? Thank you.

I will have Geena, our CHRO talk about attrition.

Yes. So, there has been a slight uptick in attrition from 13.8% that we had in Q1 to 15.1% now. But this attrition is broadly in line with the trends that we are seeing in the industry. A little bit of this is on account of the engineering area and we see some uptick in the attrition in this area. And this is mainly because we are losing some talent to the GCCs and the OEMs. So, that is the only comment I have on this.

Okay. And on the margin?

In terms of margins, we are looking to balance the capacity that we believe that our growth expectations in the second half of this year and next year will require with the ongoing pursuit of ever improving and optimizing of the profitability of the company. And that balance is something that we will continue to strive to effect.

Given that you have wage hike in the next quarter, can you quantify the impact of wage hike without looking at other factors?

All I will say is that we rolled out wage increments or salary increments for about 88% of our employee base. And we are, as we always do, applying the various operational levers that will allow us to mitigate the impact of those changes. And so, as we do every year, we will look to offset operationally the cost and the impact of the expenses that are related to the increments that we are committing ourselves to.

And so, just to harp on this, given that next quarter is going to be a weaker quarter because of the factors that you have highlighted and the fact that we have wage hike also in that quarter, is it fair to assume that next quarter the margins could be lower than the actual reported margins this quarter, is that the right takeaway?

As Vijay said at the beginning, we do not provide specific guidance on revenue or margins. I am not going to quantify it for you. All that I will say is that we rolled out salary increments. That will represent an incremental expense in the third quarter. And we will apply the traditional levers to do what we can to offset that.

Fair enough. Thank you. Thanks a lot.

Thank you. As there are no further questions, I would now like to hand the conference over to Mr. Vijay Lohia for closing comments. Over to you, sir.

Thank you all for joining us on today’s call. We hope we have addressed most of your questions. If you have any additional questions, please feel free to reach out to the investor relations team and we will be happy to assist you. Wishing you all the best and goodbye from all of us here. Thank you very much.

Thank you, members of the management. On behalf of Tata Technologies, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.