Tata Elxsi Q1 FY26 profit slips 22 per cent on transport slowdown

Tata Elxsi Q1 FY26 profit slips 22 per cent on transport slowdown

Published: 11th July 2025

By: Dheeraj Kumar

Profit slips for Tata Elxsi

Net profit fell by twenty-two per cent year on year to Rs 144 crore in Q1 FY26, sending the share price down by more than three per cent on 11 July 2025.

Auto slowdown hits the transport segment

The transport segment, the firm’s largest revenue driver, shrank 5.3 per cent as clients paused R and D projects amid global uncertainty.

Revenue misses Street estimates

Overall revenue slipped 3.7 per cent to Rs 892 crore, coming in below analyst expectations for the quarter.

Valuation is still rich

Even after the share-price fall, the stock trades at a price-to-earnings multiple of 49.7 and a price-to-book of 12.4.

Strong profitability metrics

Return on equity stands at 29.4 per cent, while return on capital employed is 39.1 per cent.

Value Research ratings snapshot

Overall rating 4/5; quality 9/10; growth 7/10; valuation 4/10; momentum 4/10.

Key numbers at a glance

– Market cap: Rs 37,030 crore – Dividend yield: 1.3 per cent – EPS: Rs 119.7 – Book value: Rs 456.1

What the company does

Tata Elxsi delivers design-led engineering solutions across automotive, media, telecom and healthcare, including driverless-car systems and digital health platforms.

Before you act

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Disclaimer

This web story is for information only and is not investment advice.

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