Tata Elxsi Ltd. reported a 16% decline in net profit for the first quarter of fiscal 2026, thereby missing analysts' estimates.The company's consolidated net profit for the quarter ended June fell to Rs 144.4 crore from Rs 172.4 crore in the previous quarter. Bloomberg had estimated the bottom line at Rs 170.1 crore.Revenue fell 1.8% sequentially to Rs 892.10 crore from Rs 908.34 crore. The consensus estimate of analysts tracked by Bloomberg was of Rs 914.13 crore.The earnings before interest and tax, or EBIT, saw a 11% decline to Rs 162.4 crore as against Rs 183 crore in the last quarter, along with the EBIT margin which stood at 18.2% versus 20.1% in the previous quarter. "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," said Manoj Raghavan, CEO and managing director of Tata Elxsi.Tata Elxsi Q1 Results Key Highlights (Consolidated, QoQ)Revenue down 1.8% to Rs 892.1 crore versus Rs 908.34 crore. (Bloomberg estimate: Rs 914.13 crore).EBIT down 11% to Rs 162.44 crore versus Rs 182.97 crore (Bloomberg estimate: Rs 194 crore).EBIT margin at 18.2% versus 20.1% (Bloomberg estimate: 21.2%).Net profit up 16% to Rs 144.37 crore versus Rs 172.42 crore (Bloomberg estimate: Rs 170.13 crore).Sector-Wise PerformanceThe transportation business logged a 3.3% sequential growth owing to the positive impact of large deals won last quarter, according to the company's press release.However, the company's media and communication business reported a decline of 5.5%, largely due to transition investments for the large deals Tata Elxsi won in the previous quarter. The healthcare and lifesciences segment too saw a quarterly decline of 6.7%, "primarily affected by tariff related impact on medical device engineering programs and spend with two key customers in the US," the release stated.