Tata Elxsi Q2 Results: Profit Rises 7% On Growth In Overseas Business
Tata Elxsi's earnings before interest and tax, or EBIT, rose by 4.6%.
Tata Elxsi Ltd. reported a 7.2% advance in net profit for the second quarter of fiscal 2026, thereby meeting analysts' estimates. The jump in bottom-line came on the back of growth in overseas business.
The company's consolidated bottom-line for the quarter ended September rose to Rs 154.81 crore from Rs 144.4 crore in the previous quarter. Bloomberg had estimated the bottom line at Rs 154.48 crore.
The revenue rose 2.9% sequentially to Rs 918 crore from Rs 892 crore. The consensus estimate of analysts tracked by Bloomberg was of Rs 914.98 crore.
The earnings before interest and tax, or EBIT, saw a 4.6% advance to Rs 170 crore as against Rs 162 crore in the preceding quarter, along with the EBIT margin which stood at 18.5% versus 18.2% in the previous quarter.
"Amidst dynamic market conditions and geopolitical uncertainties, we delivered strong QoQ growth across overseas markets led by US which grew at 7.9% QoQ. We continue to win new customers in our core verticals and adjacent markets in the US region, which is expected to add to the growth momentum of the company, backed by differentiated technology capabilities and offshore execution excellence", said Manoj Raghavan, CEO and managing director of Tata Elxsi.
Tata Elxsi Q2 Results Key Highlights (Consolidated, QoQ)
Revenue up 2.9% to Rs 918.10 crore versus Rs 892.09 crore
Net Profit up 7% to Rs 154.81 crore versus Rs 144.36 crore
Ebit up 5% to Rs 169.87 crore versus Rs 162.43 crore
Margin at 18.5% versus 18.2%
Sector-Wise Performance
The media and communication business posted a growth of 6.8% against a decline of 5.5% in the previous quarter, according to the company's press release.
The transportation business logged a 0.7% sequential growth, building on the momentum of large deal wins.
The system integration business, which provides experiential technology solutions across various verticals, recorded a 20.5% growth during the quarter ended Sept. 30.
Before the quarterly results were declared, Tata Elxsi's stock settled 2.07% higher at Rs 5,573 apiece on the NSE, compared to a 0.54% advance in the benchmark Nifty 50.
