Tata Elxsi shares hit 52-week low, react to Q1 earnings; brokerages share price targets 

Shares of Tata Elxsi Ltd slipped 6% to hit a fresh 52 week low in early deals today after the firm reported its Q1 earnings. Tata Elxsi stock came under pressure due to EBITDA margin miss. EBITDA margin slipped to 21.2%, down 340 bps QoQ. Revenues from operations came at Rs 1,021.1 crore, rising 2.8% QoQ and 14.5% YoY. EBITDA came at Rs 216, growing 15.7% YoY.  Net profit came at Rs 170.6 crore, rising 18.2% YoY; PAT Margin at 16.1%.

The Tata Group stock, which is in a correction mode for a period up to five years slipped 6% to a fresh 52 week low of Rs 3570 on BSE today. Total 0.66 lakh shares of the firm changed hands amounting to a turnover of Rs 23.47 crore on BSE.

In terms of technicals, the Tata Group stock is near the oversold zone with a RSI of 39.2. Tata Elxsi shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

This year, the Tata Elxsi stock is down 32% and 45% in a year.

The large cap stock hit a 52 week high of Rs 6423.10 on July 15, 2025.

Tata Elxsi stock has a one-year beta of 0.9, indicating very low volatility during the period.

Tata Elxsi share price targets 

JPMorgan assigned a Neutral call to the Tata stock with a target price of Rs 3500.

Margins fell a sharp 330 bps QoQ due to a combination of headwinds from large deal transition and rampup costs, onsite delivery investments (subcons), talent investment, customer related costs and provisions, and one time annual costs, said the global brokerage adding that some of these costs will go away over next 1-2 quarters while some will take a bit longer.

Revenues grew 1.3% CC QQ led by Media/Telecom while there were drags in Auto and Healthcare. The firm continues to aim for HSD revenue growth in FY27 (JPMe at 6.4%). However, this hinges on healthcare rebounding where there is still uncertainty. Management expects Media/Telecom growth to continue on the back of deal wins and rampups. In autos, it acknowledged headwinds in EU region (>40% of auto business).

The brokerage cut its earnings projections by 1-13% mainly led by 7-330 bps margin cuts over FY27-29E

Kotak Institutional Equities assigned a sell call on the firm with a target price of Rs 3,000.

The brokerage said the firm reported in-line revenues but disappointed on the profitability front.  Media & communications vertical grew on deal ramp-ups, while transportation & medical devices segment registered a modest decline.

Deal transition costs and upfront investments in GTM & delivery capabilities impacted margins. A large part of cost inflation is sticky, impacting profitability profile. The brokerage factored in continued demand challenges in auto and moderate margin estimates, leading to a projection of 10-14% earnings cuts during FY2027-29E.

Tata Elxsi is among the world’s leading providers of design and technology services across industries including Automotive, Broadcast, Communications, Healthcare and Transportation.