Revenue from operations also fell 3.7% to Rs 892 crore from Rs 926 crore, impacted by macroeconomic headwinds and client-specific challenges.
Sequentially, profit declined 16% from Rs 172 crore in Q4FY25, while revenue dipped nearly 2% from Rs 908 crore.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at Rs 187 crore, down 26% from Rs 252 crore a year ago. Profit before tax (PBT) also fell 22% year-on-year to Rs 196 crore.
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Key Deals in Q1
Tata Elxsi secured a multi-million-dollar design and digital deal with a US-based global technology firm to support a major data and insights program for next-generation AI and product feature development.It was also selected as a strategic partner for medical device testing, certification, and regulatory compliance for a cardiovascular product portfolio. The company contributed through design consultation, tech architecture, advisory services, and integration of technology and content.Also Read: Vodafone Idea slides 57% in a year; analysts warn of further downside below Rs 6.30
Management Commentary
Commenting on the results, MD and CEO Manoj Raghavan said that the quarter was challenging across key markets, with macroeconomic uncertainties, industry and customer specific issues impacting R&D spend and decision making cycles across geographies. “The company has demonstrated resilience in protecting business in our largest vertical, executing on large deal wins across key verticals to create sustained revenue streams, and expanding our relationships with our customers,” Raghavan.
The earnings season kicked-off today with the announcement of TCS results which beat Street’s estimates. The Indian IT bellwether reported a 6% growth in its Q1FY26 consolidated net profit at Rs 12,760 crore versus Rs 12,040 crore in the year ago period.
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Tata Elxsi share price target
According to Trendlyne, the average target price for Tata Elxsi stands at Rs 4,846 — indicating a potential downside of 21% from current levels. Of the 15 analysts tracking the stock, the consensus rating is ‘Sell’.
Tata Elxsi stock performance
Tata Elxsi shares closed 0.16% lower at Rs 6,139.6 on Thursday, while the Sensex declined 0.41%. The stock is up 29% in the past three months but has declined 9% year-to-date and 23% over the past three years. Its market capitalisation currently stands at Rs 38,240 crore.
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