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Earnings Call Transcript

Tata Elxsi Earnings Call Transcript: Key Takeaways

Tata Elxsi reported steady constant currency revenue growth and margin expansion despite wage hikes.

Highlights
Revenue growth₹1,055.7 Cr, 2.3% constant currency QoQ growth.
MarginsEBITDA margin at 21.9%, up 70 bps sequentially.
Demand visibilityStrong in AI-led deals, medical, and transportation outside Europe.
Management confidenceBalanced; optimistic on US/India, cautious on European automotive decision-making.

Growth

Operating revenue of ₹1,055.7 Cr grew 2.3% CC QoQ; EBITDA grew 7.1% QoQ.

Outlook

Management expects H2 performance to exceed H1, targeting gradual margin improvement over 2-3 quarters.

Risks

Softness in European automotive demand remains a key risk; Q3 contains fewer working days.

Last quarter's promises, checked

Delivered

  • Guided 150 bps one-off costs to go away → delivered 70 bps margin expansion (= BEAT)
  • Aspired high-single-digit growth for FY27 → delivered 2.3% CC QoQ (= PARTIAL)
  • Guided US/APAC growth to offset Europe softness → delivered growth across all segments (= BEAT)

Partly delivered

  • Targeted healthcare to fire up and return to growth path → delivered 3.5% QoQ growth (= PARTIAL)
Source

Earnings Call Transcript filed with BSE, NSE: TATAELXSI. Summary written with AI assistance from the document.

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Tata Elxsi Ltd: key numbers

Share price
₹3,755.00
Market cap
₹23,396 Cr
Revenue (annual)
₹3,757 Cr
Net profit (annual)
₹628.4 Cr
P/E (TTM)
34.9×Sector 22.9×
Promoter holding
43.89%-0.01% QoQ
FII holding
8.00%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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