Tata Elxsi Dividend 2025: Tata Group-backed 36-year-old Tata Elxis, which trades as a midcap tech stock of the conglomerate, skyrocketed by more than 10% on April 21. This performance comes despite Tata Elxsi missing its estimates for Q4FY25 results. Investors showed strong appetite for Tata Elxsi after the stock announced its highest ever dividend of Rs 75 per share. Is there more room to buy Tata Elxsi?
Tata Elxsi Share Price:
After its Q4 results, Tata Elxis share price zoomed by 10.2% on Monday, April 21, with an intraday high of Rs 5399.05 apiece on BSE with market cap of Rs 33,288.06 crore. The stock closed near its day's high to Rs 5344.55 apiece, up by Rs 444.80 or 9.08% after market hours.
Tata Elxis was among the top gainers of BSE and NSE on Monday.
Tata Elxsi Dividend:
The tech player announced its highest ever dividend of Rs 75 per share, with a face value of Rs 10 each for fiscal FY25. The upcoming dividend is subject to tax, which shall be paid on or after the seventh day from the conclusion of the 36th Annual General Meeting, subject to the approval of the shareholders of the Company.
Tata Elxsi has delivered about 23 dividends since July 2003, as per Trendlyne data. In the past 12 months, the company's dividend payout stood at Rs 70 per share. In 2023, the company paid dividend of Rs 60.60 per share.
The upcoming Rs 75 dividend per share is the highest ever by Tata Elxsi. Its current dividend yield is about 1.31%.
Tata Elxsi Q4 Results:
During the fourth quarter of FY25, the Tata company reported operating revenue of Rs 908.3 crore, while the overall FY25 revenue stood at Rs 3,729 crore. EBITDA in Q4 stood at Rs 207.7 crore, with EBITDA margins at 22.9%. Profit after tax came in at Rs 172.4 crore, with a PAT margin of 18.1%.
Manoj Raghavan, CEO and Managing Director, of Tata Elxsi said, "Our automotive business witnessed challenges in the quarter as some OEMs and suppliers paused new program starts in the face of geopolitical, business and market uncertainties. We also saw delays in rampups planned for ongoing deals won in the previous quarters, which we expect to resume starting Q1'26. I am delighted to report a 50 M Euro multi-year SDV and software engineering deal with a European Automotive leader, that will ramp up starting April 2025."
Raghavan added, "Our media and communications business saw some customer-specific issues in the quarter due to mergers and business restructuring, while the overall industry continues to exercise caution in R&D spend and innovation. I am pleased to report a strategic multi-year product engineering consolidation deal of over 100 M USD with a marquee operator in media and communications, the largest single deal in our company's history. We also won a strategic 10 M USD consolidation deal with a global broadcaster for their streaming video platform engineering."
The CEO added, "We enter the new financial year with the foundation for stability and long-term growth laid by the large deal wins, the continued confidence of our customers across the world, a strong deal pipeline and our differentiated design-led proposition for innovation and product engineering."
BUY/SELL/HOLD Tata Elxsi Share Price:
Choice Broking highlighted that in Q4FY25, TELX's Transportation segment saw a 9.7% QoQ (CC) revenue decline due to OEM and supplier pauses amid market uncertainties. However, a EUR 50Mn multi-year SDV and software engineering deal signals growth from Q2FY26. Healthcare grew 3.5% QoQ, adding 13 marquee clients in FY25 and expanding digital and AI-led engineering efforts, with strong FY26 prospects. Media & Comm. faced a 6.3% QoQ decline, but secured over USD 110Mn in strategic deals, ensuring future stability and growth via scaled engagements with major global clients.
Although the company has secured several strong deals wins, Choice Broking's note added, "We anticipate geopolitical tensions and tariffs may hinder the conversion of deal wins into revenue, especially in the automotive sector, which accounts for over 50% of the top line. Customer-specific issues like M&A and restructuring may also impact revenue, as seen in the Media & Communications sector in Q4FY25 accounting for 30% of the top line."
On the valuation, Choice Broking said, "TELX's performance lagged expectations, with broad-based weakness across key segments. Despite strong deal wins, delays in deal ramp-ups are expected to affect overall growth. While management anticipates improved revenue growth in FY26 over FY25, we believe persistent headwinds may limit upside, with recovery timing remaining uncertain. Consequently, we cut our estimates by 5-7%, downgrade to 'SELL', and reduce our target price to INR 4,190 implying a lower PE multiple of 28x (earlier 30x, due to a weaker outlook & greater exposure to US compared to peers) based on FY27E EPS outlook of INR 149.6."
About Tata Elxsi:
Tata Elxsi is amongst the world's leading providers of design and technology services across industries including Automotive, Broadcast, Communications, Healthcare and Transportation.
As per the CEO, Tata Elxsi is very well positioned to capture the increasing global demand for software and product engineering, backed by award-winning design digital capabilities, operational and delivery excellence, scaled India presence, and a deep talent pool that is future-ready.
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