Tata Tech Expands in Germany with ES-Tec Deal

Tata Technologies shares jumped 2.7 percent to an intra-day high of Rs 721 on the BSE on Monday after the news of its takeover of German auto engineering company ES-Tec Group at seventy-five million euros.

The cash transaction, announced over the weekend, is slated to complete by December 31, 2025, with the payment made in two years and linked to performance milestones.

Tata Technologies announced that the acquisition will be earnings accretive from the very first year after completion. The acquisition is to strengthen its engineering, research and development (ER&D) capabilities, especially in next-generation mobility solutions like advanced driver-assistance systems (ADAS), connected driving, and digital engineering.

Key highlights:

• Tata Technologies will acquire German automotive engineering firm ES-Tec Group for seventy-five million euros in a cash deal set to close by December 31, 2025
• The acquisition will boost Tata Technologies' ER&D capabilities in next-gen mobility solutions like ADAS, connected driving, and digital engineering
• Following the announcement, Tata Tech shares rose 2.7 percent to an intraday high of Rs 721 on the BSE

“ES-Tec's technical expertise, customer focus and regional presence are exactly in line with our strategic aspiration to be the first choice partner to global OEMs in going through the transformation to intelligent, connected and sustainable mobility," said Warren Harris, Tata Technologies' Managing Director and Chief Executive Officer.

The takeover also provides Tata Technologies a more solid presence in Germany—one of the global leaders in automotive innovation—giving it access to a deep pool of talent and major original equipment manufacturer (OEM) accounts.

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Tata Technologies, meanwhile, posted a 5 percent year-on-year consolidated net profit growth for Q1FY26 at Rs 170 crore despite a 2 percent year-on-year decline in revenue to Rs 1,244 crore.

While the recent run-up has seen the stock down just 21 percent so far this year and about 50 percent short of its all-time high of Rs 1,400, it still trades higher than its initial public offering price of Rs 500.