Tata Elxsi reported a 13.4% QoQ fall in net profit of ₹172.4 crore in Q4 FY25, versus ₹199 crore in the last quarter. The decline in profit was largely due to persistent weakness in the core transportation business, which has been impacted by global economic uncertainty and geopolitical dislocations.
Revenue from operations fell 3.3% QoQ to ₹908.3 crore during the March quarter, versus ₹939.2 crore in Q3 FY25. EBIT (Earnings Before Interest and Tax) declined 17.1% QoQ to ₹182.9 crore, reflecting a margin squeeze in core verticals. EBIT margin declined to 20.1% in Q4 FY25 from 23.5% in Q3.
Quarterly EBITDA was at ₹207.7 crore with a margin of 22.9%, reflecting an operating slowdown. Profit Before Tax (PBT) was at ₹221.4 crore on a PBT margin of 23.3% and Profit After Tax (PAT) margin of 18.1%. Tata Elxsi FY25 full-year revenue was ₹3,729 crore as net profit fell slightly to ₹784.93 crore from ₹792.23 crore in FY24.
Board of Directors also placed a final dividend of ₹75 per equity share (750%) for FY25 before shareholders at the AGM for approval. Transportation business, accounting for 53% of software services revenues, declined 10% quarter-on-quarter in Q4 due to slowdowns in the introduction of new programs by vendors and OEMs.
Political stress and apprehension by potential U.S. tariff hikes on automobile exports also depressed the transportation business. While the Logistics segment weakened, partially offset by robust Healthcare & Life Sciences segment growth.
CEO Manoj Raghavan reported early signs of recovery in Q1 FY26 underpinned by a new multi-year strategic €50 million deal with a leading European vehicle OEM, up from June 2025.
The organization continues to be digital native in its soul, with its talent pool far exceeding 70% being now AI-ready and having more than 500 domain experts across use cases for AI as well as generative AI. Its senior management remains upbeat about future prospects supported by strong client relationships, strong transaction pipeline, and growing demands for design-driven innovation and engineer-led solutions.
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