Tata Elxsi Ltd. share price target

Tata Elxsi’s outlook reflects a pragmatic recalibration in a volatile macroeconomic environment. Management has revised its FY27 growth aspiration to single-digit or high single-digit growth, citing geopolitical dislocation and elongated deal-decision cycles.

The revenue performance (+0.9% QoQ CC) was below our estimates (+1.2% QoQ CC), attributed to delayed deal closures within Healthcare vertical, down 13.7% QoQ. Media and Communications supported the overall growth, while Transportation growth was muted sequentially. The overall OEM mix (~77% of revenue) is improving within Transportation, which should drive a steady state going forward, although it anticipates Transportation to grow high-single digit in FY27E. We believe the underlying spending pattern within M&C and H&L is sporadic and require couple of more quarters to derive predictable growth within these verticals. Near-term M&C performance is largely...

TATA Elxsi (TELX) reported Q4FY26 revenue growth and margin in line-with I-Sec est. Growth was led by traction from: OEMs, stabilisation of automotive demand and a recovery in the media and communication vertical; and continued traction in EU.

Tata Elxsi (TELX) reported revenue of USD109m in 4QFY26, up 0.9% QoQ in CC terms, below our estimate of 2.0% CC. Growth was led by media and communication business (up 5.6% QoQ CC), whereas HLS declined 13.1% QoQ CC.

Tata Elxsi’s Q3 performance was driven by growth in Transportation, supported by large deal ramp-ups, recovery of a strategic client and expansion into adjacencies, with margins improving materially on higher utilization.

We have revised our FY26E/FY27E EPS estimates by 0.4%/-0.8% as we maintain a cautious near-term outlook, given the temporary impact of the cybersecurity incident, moderation in media and communications growth, and slower recovery in healthcare.

TATA Elxsi (TELX) reported better-than-expected Q2FY26 performance on both revenue and margins fronts. However, signs of structural recovery in demand are yet to emerge.

Tata Elxsi (TELX) reported revenue of USD105m in 2QFY26, up 1% QoQ in CC terms, in line with our estimate. Growth was led by Media and Communications (up 3.7% QoQ CC), whereas Transportation/HLS declined 0.5%/4.6% QoQ CC.

*over or under performance to benchmark index We believe softness in the spending by automotive clients is likely to pose a near-term challenge. As a result, reprioritization in the EV R&D budget is expected. To offset the same, TELX aspires to navigate by ramping up multi-year large deals. Despite new deals won in healthcare, the company expects stability only in the later half of the year. However, TELX is well positioned to capture the opportunities due to its deep domain...

We have revised out FY26E/FY27E EPS estimates by -28.1%/-25.9% on account
of slower-than-anticipated recovery in media and healthcare, weak revenue
visibility, and a delayed margin normalization trajectory, with EBIT margins now
expected to remain below FY25 levels over near to medium term. Persistent macro headwinds and muted vertical traction warrant a cautious stance until greater clarity emerges on growth and profitability recovery.

TATA Elxsi (TELX) reported a disappointing print vs I-Sec’s already muted estimates. Q1FY26 marks the fourth straight quarter of muted revenue performance.

Margins declined sharply due to missing operating leverage in Q1 The revenue de-growth was in line with our estimates, largely attributed to M&C and H&L, while Transportation business reported flat QoQ CC vs -9.7% QoQ CC in Q4. The transportation business growth is negatively impacted by Tier-1 suppliers, otherwise the deal ramp ups on the Auto OEMs have improved of late and compensating the weakness against Tier-1. The management sounded optimistic to drive growth within Transportation from Q2, while M&C would recover from Q3 led by large deal ramp up. The timely ramp ups of the...

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Facing Near-Term Headwinds Amid Uncertain Growth Prospects

Tata Elxsi (TELX) has reported a muted Q4FY25 print with revenue contraction of 5.3% QoQ CC, roughly in line with our estimate (of -5.9%) and falling below consensus.

Tata Elxsi (TELX) reported muted growth of 0.2% QoQ CC in Q2FY25. While the Auto vertical continues to grow at a healthy pace, challenges persist in Communication and Healthcare.