Tata Elxsi Q1 Results: Net profit slips 21.6% YoY to ₹144 crore; CEO says quarter was challenging across key markets

On a sequential basis, the numbers slipped 16.3% as the company reported a net profit of ₹172.42 crore in the March 2025 quarter (Q4 FY25).

Its revenue from operations came in at ₹892.09 crore, down 3.7% from ₹926.45 crore logged in the year-ago period. In the March 2025 quarter, the company reported revenue of ₹908.34 crore. This translates to a decline of 1.78% on a QoQ basis.

Other Income came in at ₹38.5 crore, up 19.9% YoY but down 10.7% QoQ. Total Income slipped 2.2% QoQ to ₹930.6 crore. On a YoY basis, the figure declined 2.9%.

EBITDA, or earnings before interest, taxes, depreciation, and amortisation, also known as operating profit, came in at ₹186.7 crore, down 10.1% QoQ and 26% YoY. EBIT slipped 11.2% QoQ to ₹162.4 crore. On a YoY basis, EBIT fell 27.9%.

EBITDA margin slipped to 20.9% in Q1 FY26 as against 22.9% in the previous quarter, and 27.2% in the June quarter of the fiscal year 2025.

Basic and diluted earnings per share (EPS) came in at ₹23.18 for the quarter under review, down 16.3% QoQ, and 21.6% YoY.

Tata Elxsi Q1 Results: What management said

Manoj Raghavan, CEO and MD, said, "This quarter was challenging across key markets, with macroeconomic uncertainties and industry- and customer-specific issues impacting R&D spend and decision-making cycles across geographies. The company has demonstrated resiliency in protecting business in our largest vertical, executing on large deal wins across key verticals to create sustained revenue streams, and expanding our relationships with our customers."

The MD added that the company's transportation business, which represents over 50% of its overall revenues, recovered smartly to report a 3.7% growth QoQ in actual currency and flat in constant currency terms.

"We are starting to realise the positive impact of large deals won last quarter, including SDV-related deals with Mercedes-Benz and a European OEM, and Suzuki a quarter prior. We see continued recovery and growth of our transportation business, backed by the deals we have won, a healthy pipeline of large deals and new customer logos."

SDV stands for software-defined vehicle.

The MD said its Media and Communication Business (MCV) reported a decline of 5.5% QoQ in constant currency. "While the overall business environment in this industry continues to be subdued, the drop is largely due to transition investments for the large deals we won last quarter," Raghavan said.

"We expect to bring back growth in Q2 and beyond, on the back of these large deal ramp-ups and a healthy deal pipeline. Our Healthcare and Lifesciences business declined 6.7% QoQ in constant currency, primarily affected by tariff-related impacts on medical device engineering programmes and spending with two key customers in the US. We expect recovery in this region in the second half of FY26," the MD added.