Tata Elxsi Q3 net profit slumps ~45%; stock tumbles ~5%

14 Jan 2026 , 01:41 PM

Tata Elxsi announced that it has logged a 45.3% year-on-year drop in net profit for the December quarter. This was impacted by an exceptional charge of ₹95.69 Crore after changes in India’s labour laws.

Following this announcement, the company’s counter slipped as much as 5%.

At around 1.31 PM, Tata Elxsi was trading 4.48% lower at ₹5,533.50 per piece, against the previous close of ₹5,793 on NSE. The counter dunked to an intraday low of ₹5,519.

The business reported a net profit of ₹108.89 Crore in the December 2025 quarter. This was about 45% lower than ₹199.01 Crore in the previous corresponding year. The company has cited one-time increases in employee benefit provisions due to revised wage structures under the new labour codes.

The business commented that, “changes to employee benefit plans due to legislative amendments required the company to recognise past service cost immediately in the statement of profit and loss.

However, despite a decline in its net profit, the company witnessed a marginal growth in its revenue from operations.

The business reported a 1.50% y-o-y growth in its revenue from operations at ₹953.47 Crore. 

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