Tata Elxsi (TATAELXSI) Q1 25/26 earnings summary

Executive summary

• Operating revenue for Q1 SY 2026 was INR 892.1 crore, with an EBITDA margin of 20.9% and PBD margin of 21.1%.

• The quarter was challenging due to macroeconomic, geopolitical, and industry-specific issues impacting R&D spend and deal closures.

• Transportation, the largest vertical, showed resilience with flat to 3.7% QoQ growth in constant currency, aided by large deal wins.

• Media & Communication and Healthcare segments declined QoQ, but recovery is expected in H2 FY26.

• Focus remains on margin improvement and utilization as key businesses return to growth.

Financial highlights

• Revenue from operations was INR 892.1 crore for Q1 SY 2026, down 1.8% QoQ and 3.7% YoY.

• PAT at INR 144.4 crore, down 16.3% QoQ and 21.6% YoY; EBITDA margin at 20.9%.

• EPS (Basic & Diluted) at INR 23.18, down 16.3% QoQ and 21.6% YoY.

• Media and communication revenue declined 5.5% QoQ; healthcare and life sciences declined 6.7% QoQ in constant currency.

• System integration and support segment saw a sharp decline QoQ due to the absence of a one-time large deal from the previous quarter.

Outlook and guidance

• Transportation and media & communications expected to return to growth in Q2 SY 2026 and beyond, with improved utilization.

• Medium-term aspiration to return to 29-30% EBITDA margin as revenue recovers.

• Healthcare segment recovery projected in H2 FY26.

• No formal revenue or profit guidance provided for FY 2026.

• Full ramp-up of large media deal expected by H2 FY 2026.