Tata Elxsi, the midcap stock under Tata Group's tech basket, is in focus on Thursday ahead of its quarterly report for FY26. The 36-year-old IT player will declare its financial results for the period of June 30, 2025, where its revenue and EBIT margins are predicted to fall. Ahead of Q1FY26 earnings on July 10, Tata Elxsi's share price traded on a bearish note.
Tata Elxsi Share Price:
At the time of writing, during Thursday's trading session, TCS stock dropped by 0.6% to trade at Rs 6113.60 apiece on BSE, with market cap of Rs 38,087.09 crore. The stock touched an intraday high and low of Rs 6154 apiece and Rs 6105 apiece respectively.
YTD, the midcap tech stock dropped by at least 9.5% on BSE.
Tata Elxsi Q1 Results Preview:
According to Kotak Institutional Equities, Tata Elxsi is expected to report another weak quarter with 2.6% c/c qoq revenue decline, primarily led by mid-tohigh single digit decline in media & communications vertical and modest decline in transportation. Transportation would be impacted by general weak spend environment and moderating spends at top client. Gradual ramp-up in large engagement drives sharp decline in media & communications vertical.
Also, the tech player's EBIT margins are predicted to fall by 10 bps qoq due to large deal transition costs and top line performance.
Key Focus Areas In Tata Elxsi's Q1 Results:
Kotak's analysts suggested investors to focus on ---- (1) overall demand outlook in SDS segment and FY2026 growth aspirations; (2) commentary on engagements with JLR and other clients in transportation; (3) outlook on R&D spends by automotive clients in the wake of multiple business uncertainties; (4) outlook of media & communications vertical; (5) investments to enhance GTM capabilities; and (6) progress on scale-up of adjacencies in each of the three focus verticals.
For the full financial year 2024-25, Tata Elxsi posted revenue of Rs 3,729 crore, up by over 5% YoY. In constant currency, the revenue growth stood at 3.1% YoY. Additionally, FY25 net profit came in at Rs 784.9 crore, down by 0.9% YoY. EBITDA growth was at 26.1%.
On segment-wise, in FY25, the company's transportation growth was at 11.8% YoY in CC terms, aided by large deals and sustained traction in Software Defined Vehicles. Whole its healthcare declined by 9.4% YoY in CC terms, ends the year with a strong exit in Q4'25. Additionally, media and Communications dropped by 5.5% YoY in CC terms, amidst a challenging industry environment.
About Tata Elxsi Ltd:
Tata Elxsi is among the world's leading providers of design and technology services across industries including automotive, broadcast, communications, healthcare, and transportation. Headquartered in Bangalore and part of the Tata group, Tata Elxsi works with leading OEMs and suppliers in the automotive and transportation industries for R&D, design, and product engineering services from architecture to launch and beyond.
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