Tata Elxsi Q2FY26 Results Preview: revenue, margins may fall amid JLR cybersecurity impact
As the result season for the September 2025 quarter kicks-off officially from Thursday, October 9, Tata Elxsi is also set to announce its earnings for the period ended on September 30, 2025.
- Oct 9, 2025,
- Updated Oct 9, 2025 8:47 AM IST
As the result season for the September 2025 quarter (Q2FY26) kicks-off officially from Thursday, October 9, Tata Elxsi is also set to announce its earnings for the three-months and six-months ended on September 30, 2025. Brokerage firms continue to have mixed views on the earnings and stock, particularly considering the latest Jaguar Land Rover (JLR) cybersecurity hack.
Analysts tracking the stock, believe that the company may report a mild growth in revenue, Ebit and net profit on a quarter-on-quarter (QoQ) basis. However, the company may report a mild degrowth in revenue on a year-on-year (YoY) basis, revenue and may profit around 30-35 per cent on a yearly basis, with margins contracting up to 700 basis points (bps) on yearly comparison.
Nirmal Bang Institutional Equities expects Tata Elxsi to report a 2.4 per cent YoY degrowth in revenue at Rs 932.1 crore in Q2FY26. Ebitda is seen falling 22.2 per cent YoY to Rs 186.2 crore, while Ebit margin may improve sharply to 25.1 per cent. Net profits may come in at Rs 165.1 crore, down 28 per cent YoY for the quarter. However, QoQ growth is seen in all revenue, Ebit and net profit.
"We expect 0.5 per cent QoQ CC growth after 3.9 per cent QoQ CC decline in 1QFY26. Growth will come on the back of the media and communication vertical which was soft in 1Q. EBIT margin is expected to expand by 180 bps to 20 per cent as revenue picks up and the system integration and support services business," it Nirmal Bang said with a target price of Rs 5,537 and a 'sell' rating.
Shares of Tata Elxsi settled at Rs 5,459.75 on Wednesday, up 1.33 per cent for the day. The company commanded a total market capitalization of Rs 34,000 crore. The stock has tumbled nearly 32 per cent to Rs 8,025, hit a year ago.
Choice Institutional Equities is penciling in revenue of Rs 914.6 crore, down 4.2 per cent YoY while Ebit margins may drop 694 bps to 18.2 per cent for the second quarter ended on September 30, 2025. Net profit is likely to fall 35 per cent 149.2 crore for the reported period. Choice has a 'sell' rating on Tata Elxsi with a target price of Rs 4,190.
"We expect 0.5 per cent QoQ de-growth in dollar terms for Q2, supported by ramp-up in transportation and recovery in media & communications, partly offset by softness in HLS. The JLR cybersecurity incident is likely to have a temporary impact. Commentary on Tier-1/OEMs R&D spends, deal pipeline, HLS vertical and impact of JLR cybersecurity incident will be key things to watch out," it said.
HDFC Securities is expecting Tata Exlsi to report a revenue of Rs 913 crore, down 4.4 per cent YoY for the September 2025 quarter Ebit is seen at Rs 169 crore, down 29.2 per cent YoY, while Ebit margin is seen contracting 651 bps to 18.5 per cent for the quarter. Net profit may fall 32.4 per cent YoT to Rs 155 crore for the quarter.
"Against this backdrop of mixed sentiment, we maintain our cautiously optimistic outlook and remain selective, with a preference for Tata Elxsi in the mid-tier segment," HDFC Securities with an 'add' rating with a target price of Rs 5,765.
As the result season for the September 2025 quarter (Q2FY26) kicks-off officially from Thursday, October 9, Tata Elxsi is also set to announce its earnings for the three-months and six-months ended on September 30, 2025. Brokerage firms continue to have mixed views on the earnings and stock, particularly considering the latest Jaguar Land Rover (JLR) cybersecurity hack.
Analysts tracking the stock, believe that the company may report a mild growth in revenue, Ebit and net profit on a quarter-on-quarter (QoQ) basis. However, the company may report a mild degrowth in revenue on a year-on-year (YoY) basis, revenue and may profit around 30-35 per cent on a yearly basis, with margins contracting up to 700 basis points (bps) on yearly comparison.
Nirmal Bang Institutional Equities expects Tata Elxsi to report a 2.4 per cent YoY degrowth in revenue at Rs 932.1 crore in Q2FY26. Ebitda is seen falling 22.2 per cent YoY to Rs 186.2 crore, while Ebit margin may improve sharply to 25.1 per cent. Net profits may come in at Rs 165.1 crore, down 28 per cent YoY for the quarter. However, QoQ growth is seen in all revenue, Ebit and net profit.
"We expect 0.5 per cent QoQ CC growth after 3.9 per cent QoQ CC decline in 1QFY26. Growth will come on the back of the media and communication vertical which was soft in 1Q. EBIT margin is expected to expand by 180 bps to 20 per cent as revenue picks up and the system integration and support services business," it Nirmal Bang said with a target price of Rs 5,537 and a 'sell' rating.
Shares of Tata Elxsi settled at Rs 5,459.75 on Wednesday, up 1.33 per cent for the day. The company commanded a total market capitalization of Rs 34,000 crore. The stock has tumbled nearly 32 per cent to Rs 8,025, hit a year ago.
Choice Institutional Equities is penciling in revenue of Rs 914.6 crore, down 4.2 per cent YoY while Ebit margins may drop 694 bps to 18.2 per cent for the second quarter ended on September 30, 2025. Net profit is likely to fall 35 per cent 149.2 crore for the reported period. Choice has a 'sell' rating on Tata Elxsi with a target price of Rs 4,190.
"We expect 0.5 per cent QoQ de-growth in dollar terms for Q2, supported by ramp-up in transportation and recovery in media & communications, partly offset by softness in HLS. The JLR cybersecurity incident is likely to have a temporary impact. Commentary on Tier-1/OEMs R&D spends, deal pipeline, HLS vertical and impact of JLR cybersecurity incident will be key things to watch out," it said.
HDFC Securities is expecting Tata Exlsi to report a revenue of Rs 913 crore, down 4.4 per cent YoY for the September 2025 quarter Ebit is seen at Rs 169 crore, down 29.2 per cent YoY, while Ebit margin is seen contracting 651 bps to 18.5 per cent for the quarter. Net profit may fall 32.4 per cent YoT to Rs 155 crore for the quarter.
"Against this backdrop of mixed sentiment, we maintain our cautiously optimistic outlook and remain selective, with a preference for Tata Elxsi in the mid-tier segment," HDFC Securities with an 'add' rating with a target price of Rs 5,765.