IT services company Tata Elxsi on Thursday released its fiscal first quarter earnings report with profit at Rs 144.37 crore, missing estimates. This was 21.57 per cent lower in comparison to Rs 184.08 crore recorded during the corresponding quarter of FY25. It posted revenue from operations at Rs 892.10 crore, down 3.71 per cent as against Rs 926.46 crore orted during the first quarter of previous financial year. EBITDA for the quarter ended June 2025 stood at Rs 186.7 crore and EBITDA margin came in at 20.9 per cent.
According to a CNBC TV18 poll, Tata Elxsi was expected to report Q1 profit at Rs 163 crore and revenue for the quarter was estimated at Rs 908 crore.
Manoj Raghavan, CEO and Managing Director, Tata Elxsi, said, “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.”
He further said that the company has shown resilience by safeguarding its largest business segment, successfully delivering on major deals across key sectors, and strengthening customer relationships to ensure steady revenue growth.
Tata Elxsi Q1 performance across business verticals
Tata Elxsi’s transportation business reported a 3.7 per cent QoQ growth in actual currency and remained flat in constant currency terms. The segment benefitted from the positive impact of large deals won last quarter including SDV related deals with Mercedes-Benz and a European OEM, and Suzuki a quarter prior. “We see continued recovery and growth of our transportation business through the rest of the year, backed by the deals we have won, a healthy pipeline of large deals and new customer logos,” Manoj Raghavan said. It is worth noting that the segment represents over 50 per cent of the company’s overall revenues.
The Media and Communication Business (MCV), meanwhile, recorded a decline of 5.5 per cent QoQ in constant currency. Although the overall industry environment remains muted, Tata Elxsi said, the decline this quarter is mainly due to transition-related investments for the large deals secured 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,” it said.
In the Healthcare and Lifesciences Segment (HLS), Tata Elxsi’s next-gen product development and digital offerings delivered two key wins including a global pharma and biotech leader from Europe, and a Medtech leader from Japan. HLS declined 6.7 per cent QoQ in constant currency, primarily affected by tariff related impact. “We expect recovery in this region in the second half of FY26,” the CEO and MD said.
Going forward, Manoj Raghavan said that the company is anticipating a steady rise in profitability and margins throughout the year, as two of its biggest segments—transportation and media & communication—are expected to return to growth from Q2FY26 onward.