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.
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.
PL Capital said its interaction with the Chief Financial Officer of Tata Elxsi reaffirmed that while the automotive segment was stabilising, the broader business continued to face pressure.
Tata Elxsi's revival hinges on a sustained pick-up in OEM spend and the ramp-up of large deals over the next 6-8 quarters.
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.
For KPIT Technologies, MOFSL identifies it as a pure-play automotive ER&D partner focused on enabling SDV adoption for major OEMs. Tata Technologies faces different challenges, leading MOFSL to assign it a "Sell rating.
An analyst from YES Securities said that TCS is poised for a potential breakdown from a descending triangle pattern on the daily timeframe, suggesting a negative trend.
Tata Elxsi Q1 results preview: Tata Group's IT solutions provider is set to announce its results for the three months ended on June 30, 2025 on Thursday, July 10, 2025.
JM Financial has cut its rating on Tech Mahindra (TechM) to 'Hold' as it believes the recent run-up (18 per cent FYTD) limits upside. Emkay Global also downgraded TechM, along with HCL Tech.
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