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Informist, Tuesday, Jan. 13, 2026

 

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--Tata Elxsi Oct-Dec net profit INR 1.09 bln
--Analysts saw Tata Elxsi Oct-Dec net profit at INR 1.57 bln
--Tata Elxsi Oct-Dec revenue INR 9.53 bln
--Analysts saw Tata Elxsi Oct-Dec revenue at INR 9.49 bln
--Tata Elxsi Oct-Dec net profit INR 1.09 bln vs INR 1.55 bln qtr ago
--Tata Elxsi Oct-Dec revenue INR 9.53 bln vs INR 9.18 bln qtr ago
--Tata Elxsi Oct-Dec net profit includes one-time cost of INR 956.9 mln
--Tata Elxsi Oct-Dec tax outgo INR 373.80 mln vs INR 598.99 mln qtr ago
--Tata Elxsi Apr-Dec net profit INR 4.08 bln vs INR 6.13 bln year ago
--Tata Elxsi Apr-Dec revenue INR 27.64 bln vs INR 28.21 bln year ago
--Tata Elxsi Oct-Dec software development, services revenue INR 9.3 bln
--Tata Elxsi Oct-Dec software development, services revenue up 4% on qtr
--Tata Elxsi Oct-Dec EBITDA INR 2.22 bln vs INR 1.93 bln qtr ago
--Tata Elxsi Oct-Dec EBITDA margin 23.3% vs 21.1% qtr ago
--Tata Elxsi Oct-Dec EBIT margin 20.9% vs 18.5% qtr ago
--Tata Elxsi Oct-Dec revenue up 3.2% QoQ in constant currency terms
--Tata Elxsi Oct-Dec revenue down 5.5% YoY in constant currency terms
--Tata Elxsi Oct-Dec transportation segment sales up 7.7% on qtr
--Tata Elxsi Oct-Dec media, communications segment sales down 0.3% on qtr
--Tata Elxsi Oct-Dec healthcare segment sales down 3.6% on qtr
--Tata Elxsi: Furloughs, delay in deals hit Q3 sales from media, health ops
--Tata Elxsi: Expect to report growth in media, health segments from Jan-Mar
--Tata Elxsi Oct-Dec attrition rate 15.6% vs 15.4% quarter ago
--Tata Elxsi employee headcount 11,594 on Dec 31 vs 11,951 on Sept 30

 

By Anand JC and Shakshi Jain

 

NEW DELHI – Design and technology services company Tata Elxsi Ltd. Tuesday reported a sharp sequential decline in its net profit for the December quarter due to a substantial one-time cost incurred on account of the new labour codes. It was the company's worst bottom line performance in over six years. For the reporting quarter, Tata Elxsi reported the highest revenue in the last five quarters.

 

Tata Elxsi's top line grew 3.9% sequentially and 1.5% on year to INR 9.54 billion in the December quarter. This was close to the INR 9.49 billion pegged by the consensus estimates. "Growth was led by our transportation business, with accelerated ramp-ups in SDV (software-defined vehicle) led OEM (original equipment manufacturer) deals won earlier in the year, and normalisation of workstreams and programs with a strategic OEM client that was impacted in the previous quarter," Chief executive Officer and Managing Director Manoj Raghavan said.

 

The company's net profit in the reporting quarter declined nearly 30% sequentially and over 45% on year to INR 1.09 billion. This was due to a one-time cost of INR 956.9 million, arising from an increase in provision for employee benefits, prompted by the new labour codes.  

 

 

Excluding the one-time item, Tata Elxsi said its profit for the December quarter was INR 1.79 billion, higher than the consensus estimate of INR 1.57 billion. The company reported earnings before interest, tax, depreciation, and amortisation of INR 2.22 billion, up 10% on year and 15% on quarter. Its EBITDA margin for the reporting quarter was 23.3%, up from 21.1% in the September quarter but down from 26.3% in the year-ago quarter. The EBITDA margin calculation excludes the one-time impact of the new labour codes. Tata Elxsi's EBIT margin for the December quarter stood at 20.9%, up from 18.5% in the September quarter but lower than 23.5% in the year-ago quarter. 

 

REVENUE MIX

Revenue from software development and services for the December quarter stood at INR 9.30 billion, up 1% on year and 4% on quarter. Revenue from system integration and support services for the reporting quarter was INR 231.35 million, up 13% on year but down 4% on quarter. The company's operating revenue grew 3.2% on quarter but fell 5.5% on year in the constant currency terms.

 

Within the software development and services segment, revenue from transportation operations grew 7.7% on quarter. Revenue from media and communications operations fell 0.3% on quarter and revenue from healthcare operations fell 3.6% on quarter.

 

Europe continued to dominate the company's revenue, with that market contributing to 42% of its revenue, up from 40% in the year ago quarter. Revenue from Americas improved 110 basis points on year to 32% in the reporting quarter while revenue from India fell sharply to 16.7%, down 270 bps on year. 

 

"Among regions, growth was led by Europe and US with broad-based growth across key accounts and verticals. While the Media and Communications, and the Healthcare and Life Sciences verticals were impacted by seasonal furloughs and some key deal awards that were delayed at the end of the quarter, I am confident of recovery and growth in both these verticals starting Q4 of the current financial year," Raghavan said.

 

Top five clients contributed 49.4% to the company's revenue in the reporting quarter, up from 44.8% in the year-ago quarter. "In the Healthcare business, our investment in Gen AI powered regulatory workflows is seeing market success, with a multi-million multi-year deal award to transform the regulatory workflow processes with a European MedTech leader that delivers significant improvement in cycle time and quality," Raghavan said.

 

Tata Elxsi reported a headcount of 11,594 staff as of Dec. 31, lower than 11,951 as of Sept. 30 and 12,878 as of 2024-end. Attrition at the company increased 20 bps on quarter and 320 bps on year to 15.6% in the reporting quarter.

 

The company disclosed its financials for the December quarter after the market closed. Tuesday, its shares closed 1.8% higher on the National Stock Exchange at INR 5,793.  End

 

Edited by Akul Nishant Akhoury

 

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