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Informist, Thursday, Oct. 9, 2025

 

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--Tata Elxsi Jul-Sept net profit INR 1.55 bln 
--Analysts saw Tata Elxsi Jul-Sept net profit at INR 1.55 bln 
--Tata Elxsi Jul-Sept revenue INR 9.67 bln 
--Analysts saw Tata Elxsi Jul-Sept revenue at INR 9.17 bln 
--Tata Elxsi Jul-Sept net profit INR 1.55 bln vs INR 1.44 bln quarter ago 
--Tata Elxsi Jul-Sept revenue INR 9.67 bln vs INR 9.31 bln quarter ago 
--Tata Elxsi Apr-Sept net profit INR 2.99 bln vs INR 4.14 bln year ago 
--Tata Elxsi Apr-Sept revenue INR 18.10 bln vs INR 18.82 bln year ago 
--Tata Elxsi Jul-Sept software development, services revenue INR 8.94 bln 
--Tata Elxsi Apr-Sept revenue from ops INR 18.10 bln vs INR 18.82 bln yr ago 
--Tata Elxsi Apr-Sept total income from ops INR 18.98 bln vs INR 19.78 bln 
--Tata Elxsi Jul-Sept EBITDA INR 1.93 bln, EBITDA margin 21.1% 
--Tata Elxsi Jul-Sept EBITDA INR 1.93 bln vs INR 1.87 bln qtr ago 
--Tata Elxsi Jul-Sept EBITDA margin 21.1% vs 20.9% qtr ago 
--Tata Elxsi Jul-Sept EBIT INR 1.70 bln vs INR 1.62 bln qtr ago 
--Tata Elxsi Jul-Sept EBIT margin 18.5% vs 18.2% qtr ago 
--Tata Elxsi Jul-Sept attrition rate 15.4% vs 15.0% quarter ago 
--Tata Elxsi employee headcount 11,951 as on Sept 30 vs 12,127 as on Jun 30 
--Tata Elxsi Jul-Sept revenue growth 1.0% QoQ in constant currency terms 
--Tata Elxsi Jul-Sept revenue decline 8.3% YoY in constant currency terms 
--Tata Elxsi Jul-Sept transportation sales down 0.5% QoQ in constant currency 
--Tata Elxsi Jul-Sept transportation sales down 9.9% YoY in constant currency 
--Tata Elxsi Q2 media, communications sales up 3.7% QoQ in constant currency 
--Tata Elxsi Q2 media, communications sales down 7.6% YoY in constant currency 
--Tata Elxsi Q2 health, lifesciences sales down 4.6% QoQ constant currency 
--Tata Elxsi Q2 health, lifesciences sales down 7.2% YoY constant currency

 

MUMBAI – Design and technology services company Tata Elxsi Ltd. reported robust earnings for the September quarter with both the top line and the bottom line improving on a sequential basis. This comes after three quarters of a sequential fall in both metrics. The recovery in earnings was led primarily by a revival in the company's largest segment, software development and services. 

 

The Tata Group company's bottom line for the quarter rose a little over 7% sequentially to INR 1.55 billion. This was in line with the Street's view of a net profit of INR 1.55 billion. Its revenue from operations for the quarter rose nearly 3% sequentially to INR 9.18 billion, beating analysts' estimate of INR 9.17 billion by a slight margin. Its total income from operations for the quarter was INR 9.67 billion, up nearly 4% on quarter. However, on a year-on-year basis, the company's net profit fell over 32% and its revenue from operations fell nearly 4%.

 

In constant currency terms, the company's revenue for the September quarter grew 1.0% on quarter, in contrast to the 3.9% sequential fall seen in the previous quarter. However, on a year-on-year basis, its revenue in constant currency terms declined over 8%.

 

Revenue from the company's largest segment, software development services, grew 2.5% on quarter to INR 8.94 billion. During the previous quarter, revenue from this segment had fallen nearly 1% on a sequential basis. Revenue from its systems integration and support services operations grew nearly 24% on quarter to INR 242.8 million, in stark contrast to the 36?ll recorded in the June quarter.

 

"We have delivered strong operational excellence and resilient growth across customers, regions, and industry verticals in a challenging quarter, and have created a strong foundation for sustainable growth," Manoj Raghavan, chief executive officer and managing director, said in a post-earnings press release. The company expects this momentum to continue in the second half of the current financial year, even as it continues to invest in differentiated artificial intelligence-first offerings and services, building an AI-ready talent pipeline and strong operational excellence for bottom-line growth and margin improvement, Raghavan added.

 

Tata Elxsi's total expenses for the reporting quarter grew 2.5% on quarter and over 4% on year to INR 7.52 billion. This was mainly on the back of a near 2% and 4% sequential growth, respectively, in the company's employee benefit expense and other expenses. During the September quarter, the company's expenses related to employee benefits was INR 5.39 billion. Its other expenses were INR 1.14 billion. The company's cost of materials consumed grew nearly 9% on quarter to INR 724 million while its expenses related to depreciation and amortisation fell over 3% to INR 234 million. The company's tax expenses grew over 15% on quarter to INR 599 million.  

The Bengaluru-based technology firm's earnings before interest, tax, depreciation, and amortisation for the September quarter rose over 3% on quarter to INR 1.93 billion. Its earnings before interest and tax for the quarter was INR 1.70 billion, up nearly 5% on quarter. The company's EBITDA margin for the reporting quarter improved to 21.1%, from 20.9% in the trailing quarter. Its EBIT margin for the reporting quarter rose 30 basis points on quarter to 18.5%.

 

In the September quarter, revenue from the transportation business, which accounts for over 53% of the company's total sales, grew around 1% on a sequential basis, "building on the momentum of large deal wins and global OEM SDV (original equipment manufacturers' software-defined vehicles) programs," Tata Elxsi said. However, in constant currency terms, revenue from this segment fell nearly 1% on quarter and around 10% on year.

 

Revenue from the company's media and communication business, which accounts for more than 31% of its total sales, grew 6.8% on quarter, supported by a ramping up of large deals and new deal wins across regions, according to the press release. In constant currency terms, revenue from the segment grew nearly 4% on quarter but fell around 8% on year. Revenue from the company's healthcare and lifesciences segment declined over 2% on quarter. In constant currency terms, revenue from the segment fell 5% on quarter and over 7% on year.

 

Revenue from the company's operations in India contributed to 19% of its total sales for the September quarter, down from 19.8% in the June quarter. Sales contribution from operations in Europe declined to 38.7% from 39.5% in the trailing quarter. In contrast, sales contribution from the Americas improved to 31.6% from 30.1%.

 

For the six months ended September, the company reported a net profit of INR 2.99 billion, down nearly 28% from INR 4.14 billion a year ago. Its revenue from operations for Apr-Sept was INR 18.10 billion, down around 4% from INR 18.82 billion a year ago.

 

As of Sep. 30, Tata Elxsi's headcount was 11,951, down from 12,127 at the end of the trailing quarter. Its attrition rate increased to 15.4% from 15% in the June quarter and 12.5% a year ago.

 

The company disclosed its earnings after market hours Thursday. Its shares ended over 2% higher at INR 5,573 on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

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