Earnings Review
Tata Elxsi breaks falling streak in Q4, PAT surges 28% YoY
This story was originally published at 20:17 IST on 21 April 2026
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--Tata Elxsi Jan-Mar net profit INR 2.20 bln
--Analysts saw Tata Elxsi Jan-Mar net profit at INR 1.85 bln
--Tata Elxsi Jan-Mar revenue INR 9.94 bln
--Analysts saw Tata Elxsi Jan-Mar revenue at INR 9.93 bln
--Tata Elxsi Jan-Mar net profit INR 2.20 bln vs INR 1.09 bln quarter ago
--Tata Elxsi Jan-Mar revenue INR 9.94 bln vs INR 9.53 bln quarter ago
--Tata Elxsi to pay INR 75 per share dividend
--Tata Elxsi FY26 net profit INR 6.28 bln vs INR 7.85 bln year ago
--Tata Elxsi FY26 revenue INR 37.57 bln vs INR 37.29 bln year ago
--Tata Elxsi Jan-Mar software development, services revenue INR 9.68 bln
--Tata Elxsi Jan-Mar EBITDA INR 2.45 bln, EBITDA margin 24.6%
--Tata Elxsi Jan-Mar revenue up 0.9% on qtr in constant currency
--Tata Elxsi Jan-Mar revenue up 1% on year in constant currency
--Tata Elxsi Jan-Mar transportation segment sales up 3.6% on qtr
--Tata Elxsi Q4 media, communications segment sales up 9.5% on qtr
--Tata Elxsi Jan-Mar healthcare segment sales down 10.5% on qtr
--Tata Elxsi employee headcount 11,540 on Mar 31 vs 11,594 on Dec 31
--Tata Elxsi Jan-Mar attrition 15.8% vs 15.6% quarter ago
--Tata Elxsi Jan-Mar EBIT margin 22.3% vs 20.9% qtr ago
By Avishek Rakshit
KOLKATA – Higher income from software development and services backed by lower tax outgo in the March quarter resulted in design and technology services company Tata Elxsi Ltd. end its five-quarter streak of reporting on-year decline in profits. For the reporting quarter, the company also reported the highest on-year revenue growth in the last nine quarters.
Tata Elxsi's top line grew over 9% on year and over 4% on quarter to INR 9.94 billion in the March quarter which was in line with the Street's estimate of INR 9.93 billion. The net profit increased nearly 28% on year and over 102% on quarter to INR 2.20 billion which was ahead of the Street's projection of INR 1.85 billion. However, the top-line growth was also on account of the weakening rupee. In constant currency terms, Tata Elxsi's March quarter revenue was up only 1% on year and 0.9% on quarter.
"Our media and communications business, which accounted for 32.7% of revenue during the quarter, registered a strong growth 5.6% QoQ (quarter-on-quarter) in constant currency terms over the previous quarter," Manoj Raghavan, chief executive officer and managing director at Tata Elxsi, said in a statement. "This growth was led by continued deal ramp-ups, a strategic deal for AdTech and a Tier 1 US Telco win."
During the quarter, Tata Elxsi also won a multi-year large deal from a leading device original equipment manufacturer for its portfolio of video and broadband products.
"In our transportation business, while our revenues in Q4'26 (Jan-Mar) consolidated after a strong 7.3% QoQ (on quarter) constant currency in Q3'26 (Oct-Dec), we are delighted with two strategic wins – one in APAC (Asia Pacific) region from a new-age OEM, and another from the US from a next-generation mobility services company," Raghavan said in the statement.
The Tata group company reported an earnings before interest, tax, depreciation, and amortisation of INR 2.45 billion with an EBITDA margin of 24.6%. The EBIT margin during the March quarter was 22.3% as against 20.9% in the year-ago quarter.
In the March quarter, Tata Elxsi launched an offshore development centre for Japanese medical technology company Terumo to accelerate innovation and development of cardiac and vascular medical devices. This centre brings together multi-disciplinary teams across design, engineering and software, enhanced by the latest artificial intelligence technologies, Tata Elxsi said.
During the year ended March, the company reported a top-line growth of less than 1% at INR 37.57 billion but the net profit declined around 20% on year at INR 6.28 billion.
In an investors' presentation to bourses, the company said its employee headcount remained steady at 11,540 employees as of Mar. 31 as against 11,594 employees as of Dec. 31. The attrition in the March quarter rose marginally to 15.8% as against 15.6% in the December quarter.
The company's revenue from software development and services rose 10.38% on year to INR 9.68 billion in the March quarter but the top line from system integration and support services fell 17% on year to INR 255.62 million. Sales from the transportation segment were up 3.6% on quarter and that from the media and communications were up 9.5% on quarter. Sales from the healthcare vertical, however, was down by 10.5% on quarter, according to the investors' presentation.
Tata Elxsi declared a dividend of INR 75 per share for 2025-26 (Apr-Mar). Tuesday, shares of Tata Elxsi closed 3% higher at INR 4,650.70 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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