Tata Elxsi Shares Fall 5% After Weak Q1 Show

Shares of Tata Elxsi fell as much as 5% intraday on Wednesday, hitting Rs 3,469.70 on the NSE, after Q1 profit slipped from the previous quarter.

The company’s numbers tell a mixed story. Net profit for the quarter came in at Rs 170.6 crore, up 18.2% from a year ago, but down 22.58% compared to the March quarter.

Revenue rose 14.5% year-on-year to Rs 1,021.1 crore, growing a more modest 2.7% from the previous quarter. Margins took the bigger hit here.

The company’s operating margin fell to 21.2%, down 340 basis points from the March quarter, as the firm dealt with costs tied to new deal transitions and investments in its sales and delivery teams.

There’s a brighter side too. Two of Tata Elxsi key businesses grew well this quarter.

The transportation vertical rose 13.3% year-on-year on new work from vehicle makers, while media and communications grew 22.2% on the back of stronger ties with telecom and broadcast clients.

CEO and MD Manoj Raghavan called it a healthy quarter overall, pointing to strong deal execution in the company’s two largest business lines.

He added that FY27 will be a year of investment, with the firm putting money into AI tools, talent and infrastructure to build what he called a “domain plus AI” future for the business.

Headcount, meanwhile, continued to shrink. The company closed the quarter with 11,336 employees, down from 11,540 three months earlier and well below the 12,127 headcount from a year ago.

At 11:27 am on Wednesday, Tata Elxsi shares were trading at Rs 3,516.90 on the NSE, down 4.88% or Rs 180.40, after touching a low of Rs 3,469.70 earlier in the session.

The stock is now down over 32% for the year and has lost nearly 45% of its value compared to a year ago.

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