Tata Elxsi

Tata Elxsi reported September quarter results that were largely in-line with expectations, showing constant currency revenue growth after two quarters of decline. EBIT margins expanded by 30 basis points compared to the June quarter. The Media vertical led growth at 3.7% quarter-over-quarter, while Transportation declined 0.5% and Healthcare fell 4.6%. Employee headcount decreased 1.5% from last quarter and 6.6% year-over-year. Despite the sequential recovery, major brokerages maintained negative ratings. Avendus kept a 'Sell' rating with ₹4,690 price target, trimming revenue estimates by 2% for current and next financial years. Kotak maintained 'Sell' at ₹4,000, forecasting 5.4% constant currency revenue decline for FY26. JPMorgan retained 'Underweight' at ₹4,000, noting revenue beat expectations but margins fell short. Motilal Oswal kept 'Sell' at ₹4,400, citing steep valuations at 52 times forward earnings. Among 18 analysts covering the stock, 15 have 'sell' ratings, two have 'buy', and one has 'sell'. Shares closed 2.2% higher at ₹5,580, but remain down over 40% from record highs and 18% year-to-date.

Tata Elxsi is building a multi-year growth pipeline through three key initiatives: AI-first offerings, software-defined vehicle partnerships with Suzuki, and healthcare innovation collaborations with Bayer. The company is positioning itself across technology sectors through these strategic partnerships and AI-focused solutions.

Tata Elxsi reported net profit of 1.55 billion rupees compared to 1.44 billion rupees in the previous quarter. The company's revenue increased to 9.18 billion rupees from 8.92 billion rupees quarter-on-quarter.