Devarajan recounts the full turnaround in his book, Designed to Win: The Story of Tata Elxsi.
In Designed To Win, S Devarajan recounts the revival of Tata Elxsi from the edge of collapse
The multibagger stock fell 5% to Rs 5,501.90 on Wednesday against the previous close of Rs 5796.15. Market cap of the firm slipped to Rs 34,274 crore
Tata Elxsi’s Q3 earnings have once again tested investor confidence. The company reported a sharp 29.6% sequential fall in net profit to ₹109 crore, even as revenues rose 4% to ₹953 crore. Operationally, EBIT improved 17.7% to ₹199 crore, with margins rising to 21% from 18.5%, offering some relief. However, markets remain cautious, with the stock slipping 2.7% after results. Experts point out that Tata Elxsi’s globally diversified business makes it vulnerable to ongoing tariff wars and uncertain client spending across the US and Europe. While margins have improved, analysts believe this could be temporary. With demand visibility still weak, Tata Elxsi may face further pressure in the coming quarters.
MOFSL said valuations of Tata Elxsi remain steep at 43 times 12-month forward earnings, which it finds difficult to justify given the lack of sustainable cross-vertical growth visibility.
Stocks including ICICI Lombard GIC, Tata Elxsi, NLC India, Karnataka Bank, Kotak Mahindra Bank, Just Dial, Interarch Building and more will be in the spotlight on Wednesday, January 14.
The multibagger stock slipped 1.37% to Rs 5771.40 today against the previous close of Rs 5851.55. Market cap of the firm stood at Rs 35,944 crore
The stock hit an upper circuit of 10% to Rs 5877.45 on Wednesday. Market cap of the firm rose to Rs 36,613 crore.
Nirmal Bang expects the Indian IT sector's third-quarter results to reflect muted revenue growth, with Tier-I companies likely to report flat constant currency growth
Choice Broking said near-term demand visibility stayed weak in Q3, with automotive and aerospace segments showing early signs of stabilisation.
The Tata Group emerged as one of the biggest wealth destroyers for investors in 2025, an unusual outcome for a conglomerate long associated with steady value creation. The damage was led by Tata Consultancy Services, which alone erased nearly ₹3 lakh crore in market capitalisation as the IT sector grappled with slowing growth, AI-led disruption and global trade uncertainty. Several other Tata stocks - including Trent, Tata Elxsi, Voltas and Tata Technologies - declined 20-40%, further denting investor portfolios. Even Tata Motors, a past outperformer, failed to deliver meaningful gains. While Tata Steel offered some relief with a strong rally on rising metal prices, it was not enough to offset broader losses. The year highlighted how sectoral headwinds and valuation pressures can turn even marquee groups into wealth destroyers.
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