Tata Elxsi Limited Earnings Summary — Q1 FY2027
Tata Elxsi Reports Strong YoY Growth Led by Software Development Despite Sequential Margin Pressure
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 4 consecutive quarters.
- Revenue of ₹231 Cr is 9.3% higher year-on-year.
- Revenue has compounded at 18.9% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹30 Cr is 36.5% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 72.5% annualised across the period.
- Operating margin stands at 20.5% in Q4 FY2015.
- Operating margin compressed by 171 bps year-on-year.
- Over the last two years operating margin has expanded by 694 bps.
- PBT margin is 19.7%.
- Expenses grew 11.7% against revenue growth of 9.3%.
- Operating profit of ₹47 Cr is 0.9% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 70/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q4 FY2015 | Q3 FY2015 | Q2 FY2015 | Q1 FY2015 | Q4 FY2014 | Q3 FY2014 | Q2 FY2014 | Q1 FY2014 | Q4 FY2013 | Q3 FY2013 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 231 | 221 | 206 | 191 | 212 | 200 | 190 | 173 | 163 | 157 |
| Expenses | Improving | 184 | 171 | 164 | 153 | 165 | 157 | 158 | 160 | 141 | 140 |
| Operating Profit | Volatile | 47 | 50 | 42 | 38 | 47 | 44 | 32 | 13 | 22 | 16 |
| Operating Margin | Improving | 20.5% | 22.8% | 20.3% | 19.8% | 22.2% | 21.8% | 17.1% | 7.8% | 13.6% | 10.5% |
| Other Income | Volatile | -1 | 0 | 1 | 2 | 0 | -1 | 7 | 7 | -3 | 4 |
| Interest | Declining | — | — | — | — | 0 | 0 | 1 | 1 | 1 | 1 |
| Depreciation | Softening | 1 | 7 | 8 | 9 | 12 | 9 | 8 | 6 | 6 | 6 |
| Profit Before Tax | Strong Uptrend | 45 | 43 | 35 | 31 | 35 | 33 | 30 | 14 | 13 | 13 |
| Tax | Strong Uptrend | 16 | 16 | 12 | 10 | 14 | 11 | 10 | 5 | 5 | 4 |
| Net Profit | Strong Uptrend | 30 | 28 | 24 | 21 | 22 | 22 | 20 | 9 | 8 | 9 |
| Net Margin | Strong Uptrend | 12.9% | 12.5% | 11.5% | 10.9% | 10.3% | 10.8% | 10.5% | 5.2% | 5.0% | 5.6% |
Key Takeaways
- Revenue grew 14.46% year-on-year to ₹1,02,110.75 lakhs, driven by the Software Development & Services segment.
- Net profit saw a significant 22.58% sequential decline compared to Q4 FY2026, despite staying up 18.17% YoY.
- Operating margins contracted sharply to 22.76% from 26.94% in the prior quarter, impacted by a rise in 'Other Expenses'.
- The Software Development & Services vertical remains the primary revenue driver, contributing 97.2% of total segment revenue.
- The company maintains a strong balance sheet with zero long-term debt and continues to hold an unmodified audit opinion.
- Employee benefit expenses rose 3.68% sequentially, reflecting ongoing investments in human capital and talent retention.
Management Guidance
Management remains focused on high-growth premium verticals like Transportation and Healthcare, leveraging 'Design Thinking' as a key differentiator. While the current environment shows some moderation, long-term fundamentals in Embedded Product Design (EPD) and Software Defined Vehicles (SDVs) remain robust.
Sentiment Shift
Stable
While YoY growth remains healthy, the sharp sequential decline in net profit and operating margins suggests short-term operational headwinds and rising costs.
Outlook
The outlook remains positive for the Transportation segment, driven by global shifts toward SDVs. However, the company faces near-term pressure from global tech spending moderation and high valuation expectations.
From the Annual Report (Key Quotes)
“Auditors' Report with an unmodified opinion on the said financial results is also attached herewith.”
“The New Labour Codes has resulted in estimated one time increase in provision for employee benefits... recognized as an exceptional items in the previous year.”
Official Quarterly Documents
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This summary is AI-generated from Tata Elxsi Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.