Tata Elxsi (TATAELXSI) Q2 24/25 earnings summary

Executive summary

• Revenue from operations reached INR 955.1 crores, up 3.1% QoQ and 8.3% YoY, led by transportation and emerging markets.

• EBITDA margin expanded by 70 bps to 27.9%, and PAT grew 24.6% QoQ to INR 229.4 crores, aided by R&D incentives and tax credits.

• Transportation business led growth, highlighted by a $50M multi-year deal with a global OEM; India and Japan/emerging markets posted robust YoY revenue increases.

• Media & Communication saw the world's first RDK Broadband implementation for Qualcomm, while Healthcare added marquee customers despite deal renewal delays.

• Entering Q3 with a healthy deal pipeline, continued transportation momentum, and expected recovery in key verticals.

Financial highlights

• Revenue from operations: INR 955.1 Cr (+8.3% YoY, +3.1% QoQ); total income: INR 1,019.4 Cr (+11.7% YoY).

• EBITDA: INR 266.4 Cr (+1.1% YoY, +5.6% QoQ), margin at 27.9%.

• PAT: INR 229.4 Cr (+14.7% YoY, +24.6% QoQ), margin at 22.5%.

• EPS (Basic/Diluted): 36.84/36.83 (+14.7% YoY, +24.6% QoQ).

• Other income doubled QoQ, driven by UK R&D credit and tax refund interest.

Outlook and guidance

• Management remains confident of continued growth in H2, supported by a healthy deal pipeline and large deal wins, especially in transportation.

• Targeting double-digit constant currency growth for the full year, though acknowledging the challenge due to industry slowness and deal closures taking longer.

• Margins are expected to remain within the communicated band, with potential for improvement in H2.

• Strategic focus on Japan, emerging markets, and India expected to further drive growth.

• The company continues to operate as a going concern, with no indication of intent to liquidate or cease operations.