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Tata Elxsi Q1 FY26 results: Net profit down 22%, revenue falls 4%
Net profit was also lower sequentially, down from ₹172.42 crore reported in the third quarter (Q4FY25).
Revenue from operations declined to ₹892.10 crore in Q1FY26, compared to ₹926.46 crore in the same quarter last year. On a quarter-on-quarter basis, revenue was lower than ₹908.34 crore posted in Q4 FY25.
"This 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," Manoj Raghavan, chief executive officer and managing director of Tata Elxsi, said.
The company reported sequential growth of 3.7 per cent in its transportation segment, which contributes over half of its total revenue. Raghavan attributed the growth to the initial ramp-up of deals signed in previous quarters, including with Mercedes-Benz, Suzuki, and a European OEM.
'Our transportation business recovered to report a 3.7 per cent growth QoQ in actual currency… We see continued recovery and growth through the rest of the year,' Raghavan said.
He added that the media and communications business declined 5.5 per cent and healthcare fell 6.7 per cent sequentially, due to transition costs and reduced spending by some US clients. Tata Elxsi expects growth to resume in both segments from the second quarter, supported by ongoing deal ramp-ups and a healthy pipeline, he added.
Shares of Tata Elxsi closed at ₹6,139.65 apiece at the BSE on Thursday.
Tata Elxsi Q1 highlights
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