Tata Elxsi delivers resilient performance in Q1'26

For the first quarter of financial year 2025-26, the company reported operating revenue of Rs. 892.1 Cr.
Highlights of the Quarter Ended 30th
- Revenues from operations at
Rs. 892.1 Cr. - EBITDA at
Rs. 186.7 Cr, EBITDA Margin at 20.9% - Profit Before Tax (PBT) at
Rs. 196.3 Cr, PBT Margin at 21.1% - Profit After Tax (PAT) at
Rs. 144.4 Cr, PAT Margin at 15.5%
Mr.
"For the first quarter of FY26,
This quarter was challenging across key markets, with macroeconomic uncertainties, industry and customer specific issues impacting R&D spend and decision making cycles across geographies. The company has demonstrated resiliency in protecting business in our largest vertical, executing on large deal wins across key verticals to create sustained revenue streams, and expanding our relationships with our customers.
Our transportation business that represents over 50% of our overall revenues, recovered smartly to report a 3.7% growth QoQ in actual currency, and flat in constant currency terms. We are starting to realise the positive impact of large deals won last quarter including SDV related deals with Mercedes-Benz and a European OEM, and
Our Media and Communication Business (MCV) reported a decline of 5.5% QoQ in constant currency. While the overall business environment in this industry continues to be subdued, the drop is largely due to transition investments for the large deals we won last quarter. We expect to bring back growth in Q2 and beyond, on the back of these large deal ramp-ups and a healthy deal pipeline. In this quarter, we also won a strategic multi-million-dollar design-digital deal with a US tech leader for next generation AI and product-feature development.
In the Healthcare and Lifesciences Segment (HLS), our next-gen product development and digital offerings delivered two key wins including a global pharma and biotech leader from
Our Design and Systems Integration teams successfully delivered a prestigious experiential project in
We expect steady improvement in bottom-line and margin through the year even as our two largest businesses, transportation and media & communication, return to growth in Q2 FY26 and beyond, and utilization improves on the back of ready capacity and capability we have invested in over the past few quarters.
Our re-imagined website launched at the start of this quarter, reflects the AI first and human-centric approach to going beyond technology and product to designing experiences that simplify complexity, enhance human lives, and drive sustainable progress – what we call as designing purpose driven experience."
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