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Tata TechnologiesNSE:TATATECH +0.32%44 Return-on-Tangible-Equity is 37.99% as of Mar. 2026, which is 43% above its 10-year median of 26.60. GuruFocus rates NSE:TATATECH with a GF Score™ of 44/100. The stock has 9 warning signs investors should review. Among 2,477 Software companies, Tata Technologies ranks better than 68.99% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Tata Technologies's annualized net income for the quarter that ended in Mar. 2026 was ₹8,167 Mil. Tata Technologies's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹21,500 Mil. Therefore, Tata Technologies's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 37.99%.
The historical rank and industry rank for Tata Technologies's Return-on-Tangible-Equity or its related term are showing as below:
NSE:TATATECH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 19.47 Med: 26.6 Max: 33.65
Current: 21.83
During the past 7 years, Tata Technologies's highest Return-on-Tangible-Equity was 33.65%. The lowest was 19.47%. And the median was 26.60%.
NSE:TATATECH's Return-on-Tangible-Equity is ranked better than 68.99% of 2477
companies
in the Software industry
Industry Median: 8.83
vs NSE:TATATECH: 21.83
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Tata Technologies Return-on-Tangible-Equity Related Terms
Tata Technologies Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Tata Technologies's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:TATATECH vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Tata Technologies's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tata Technologies Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Tata Technologies's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Tata Technologies's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 37.99% mean?
Tata Technologies (NSE:TATATECH) has a Return-on-Tangible-Equity of 37.99% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Tata Technologies and its competitors. This is 43% above median its historical median of 26.60. Over the past decade, Tata Technologies' Return-on-Tangible-Equity has ranged from 19.47 to 33.65. According to the industry distribution chart, Tata Technologies ranks #768 out of 2477 companies in the Software industry, placing it in the top 31%.
Is Tata Technologies' Return-on-Tangible-Equity too high?
Tata Technologies' current Return-on-Tangible-Equity of 37.99% is 43% above median its 10-year median of 26.60. Over the past 10 years, this metric has ranged from a low of 19.47 to a high of 33.65. The Software industry median Return-on-Tangible-Equity is 8.83. Tata Technologies' value of 37.99% is 330.2% above this industry median. Based on the distribution chart, Tata Technologies ranks #768 out of 2477 companies in the Software industry, which is above the industry midpoint. Overall, Tata Technologies has a GF Score™ of 44/100, reflecting its overall financial health beyond just this single metric.
How does Tata Technologies' Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Tata Technologies ranks #768 out of 2477 companies for Return-on-Tangible-Equity. This puts Tata Technologies in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.83. Tata Technologies' value of 37.99% is 330.2% above this benchmark. Historically, Tata Technologies' own Return-on-Tangible-Equity has ranged from 19.47 to 33.65 over the past decade. While the company's 10-year median is 26.60 vs. the industry median of 8.83, Tata Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Software company?
The median Return-on-Tangible-Equity among Software companies is 8.83, based on 2,477 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Technologies's current Return-on-Tangible-Equity of 37.99% is 330.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Tata Technologies and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Technologies's current Return-on-Tangible-Equity is 37.99%, which is 43% above median its own 10-year median of 26.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Technologies stock overvalued right now?
Tata Technologies (NSE:TATATECH) has a current Return-on-Tangible-Equity of 37.99%. The current Return-on-Tangible-Equity is 37.99%, which is 43% above median its 10-year median of 26.60 and 330.2% above the Software industry median of 8.83. Tata Technologies' overall GF Score™ is 44/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Tata Technologies (NSE:TATATECH), the current Return-on-Tangible-Equity is 37.99% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Tata Technologies Ltd is an engineering services company offering product development and digital solutions, including turnkey solutions, to original equipment manufacturers (OEMs) and their tier-1 suppliers. It has deep domain expertise in the automotive industry and leverages this expertise to serve its clients in adjacent industries. The company's reportable segments are; Services, and Technology Solutions. A majority of its revenue is generated from the Services segment which includes providing outsourced engineering and designing services and digital transformation services to manufacturing clients. It generates revenue from India, North America, Europe, the United Kingdom, and other regions.
44GF Score
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