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Informist, Thursday, Jul. 10, 2025

By Arya S. Biju and Avishek Rakshit

MUMBAI – Even as Tata Elxsi Ltd. has been focussing on expanding its media and communications portfolio and is keen on getting deals in the defence and aerospace segments, the design and technology services company is expecting its mainstay transportation solutions business to lead growth in the coming quarters, the company's management said in a post-earnings analyst call Thursday. The company is seeing continued deal momentum from original equipment manufacturers in the automotive segment, especially in Europe and Japan, the management said.

However, the company has witnessed a slowdown in demand from original equipment manufacturers in the US. The company faced some disruptions in this region, including project cancellations, the management said. "We are not getting a clear idea as to when we will be able to restart some of those discussions with the US OEMs (original equipment manufacturers). I think we are seeing a good recovery happening across the market," the management said. 

Deal ramp-ups started accelerating in the June quarter, the management said, adding that it expects this trend to continue in the upcoming quarters. "Our US market is still a little bit slow, but in other markets we see much better visibility, deal closures, as well as ramp-ups happening," the management said. Further, the company said it was witnessing traction in software-defined vehicle-related deals. 

Revenue from the transportation business remained flat on quarter in constant currency terms, while revenue from its media and communication business declined 5.5%. This decline in media and communication sales was largely due to transition investments for the large deals won in the March quarter, Tata Elxsi said in post-earnings press release. It expects revenue growth in the media and communication segment to recover in the coming months on the back of large deal ramp-ups and a healthy deal pipeline. 

Revenue from the healthcare and lifesciences segment fell 6.7% sequentially in constant currency during the quarter, led by the impact of tariffs on medical device engineering programmes and two key customers in the US pausing project ramp-ups, the management said. It expects a recovery in the segment from the second half of 2025-26 (Apr-Mar).

Tata Elxsi announced its June quarter earnings after market hours, Thursday. The company reported a net profit of INR 1.44 billion for the quarter, down over 16% on quarter. Revenue from operations for the reporting quarter was INR 8.92 billion, down around 2% sequentially. Shares of the company closed 0.2% lower at INR 6,137.50 on the National Stock Exchange.  End 

Edited by Akul Nishant Akhoury

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