Tata Elxsi Profit Crashes 45% on Weak Q3; Revenue Growth Stalls
Overview
Tata Elxsi reported a sharp 45.2% year-on-year drop in net profit to ₹108 crore for the third quarter of FY26. Revenue growth was marginal, inching up just 1.52% to ₹953 crore. The company cited operational excellence and a strong US OEM deal in its transportation business, but media and healthcare sectors faced headwinds from furloughs and delayed awards. Nine-month profits declined 33%.
Stocks Mentioned
Profit Plummets Amidst Muted Revenue Growth
Tata Elxsi Ltd. posted a stark 45.2% year-on-year decline in net profit for the third quarter of fiscal year 2026. Net profit fell to ₹108 crore, down from ₹199 crore in the same period last fiscal.
The company’s revenue from operations saw only modest growth, rising 1.52% to ₹953 crore compared to ₹939 crore in the corresponding quarter of FY25. Despite the profit slide, EBITDA improved by 220 basis points quarter-on-quarter to ₹222.2 crore, attributed to operational efficiency and better utilization.
Nine-Month Performance Shows Decline
For the first nine months of FY26, Tata Elxsi’s net profit decreased by 33% to ₹408 crore, a significant drop from ₹612 crore in the prior year. Revenue also experienced a 2% contraction, standing at ₹2,763 crore for the nine-month period, down from ₹2,820 crore in FY25.
Business Drivers and Sectoral Headwinds
Growth was primarily driven by the transportation segment, bolstered by software-defined vehicle (SDV) ramp-ups and securing deals with original equipment manufacturers (OEMs). The company announced a new program with a US-based off-highway OEM for a complex operator information and control system.
However, the Media and Communications and Healthcare and Life Sciences verticals faced pressure. Seasonal furloughs and delays in crucial deal awards towards the quarter's end impacted performance in these segments.
