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 faced macroeconomic and geopolitical headwinds, impacting R&D spend, decision cycles, and deal closures, but resilience was shown in transportation and large deal execution.

• Transportation, over 50% of revenue, was flat in constant currency but grew 3.7% QoQ in actual currency; large deals in SDV and vehicle engineering are ramping up.

• Media and communication declined 5.5% QoQ in constant currency, but large consolidation deals and partnerships are expected to drive growth in upcoming quarters.

• Healthcare and life sciences declined 6.7% QoQ in constant currency, mainly due to tariff impacts on US medical device customers; recovery expected in H2.

Financial highlights

• Revenue from operations for Q1 SY 2026 was INR 892.1 crore (₹89,209.59 lakhs), down 1.8% QoQ and 3.7% YoY.

• EBITDA margin was 20.9%, PBD margin 21.1%, and PAT margin 15.5%.

• PAT for the quarter was ₹14,436.77 lakhs, down 16.3% QoQ and 21.6% YoY.

• EPS (basic and diluted) was ₹23.18, down from ₹27.68 in the previous quarter and ₹29.56 YoY.

• 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.

• Recovery in healthcare anticipated 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.