Tata Elxsi Ltd. share price target

Tata Elxsi’s Q3FY25 revenue and profit missed our expectations. Revenue stood at INR 9,392 Mn, up 2.7% YoY (-1.7% QoQ), missing our expectations, due to weakness across verticals.

Tata Elxsi earnings surpassed expectations, with revenue aligning with our estimates. TELX Q2FY25 revenue stood at INR 9,551 Mn, up 8.3% YoY (+3.1% QoQ), which is largely in line with our projections.

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.

Tata Elxsi reported in-line revenue, but earnings fell short of our estimates.
Revenue grew to INR 9,265 Mn, up 9.0% YoY, primarily driven by higher revenue from the software development & services segment (8.8% YoY).

Tata Elxsi reported weak numbers which missed our estimates across the board.
Revenue of INR 9,059 Mn a decline of 0.9% QoQ, primarily due to a decline in the software development & services segment (-1.0% QoQ).

In Q3FY24, Tata Elxsi reported revenue of INR 9,142 Mn registering growth of 3.7% QoQ and 11.8% YoY. The growth was led by Healthcare and Life Sciences which increased by 4.6% QoQ and 13.0% YoY due to new product engineering and regulatory services.

Tata Elxsi recorded healthy revenue growth of 15.5% YoY and 3.7% QoQ. The growth was primarily led by strong deal pipeline, delivery excellence and differentiated services. The Transportation segment witnessed growth of 26.1% YoY, which was led by large deal wins and strong traction in Software Define Vehicles (SDV).

Tata Elxsi Ltd reported a YoY revenue growth of 17.12% to INR 8,502 mn in Q1FY24, compared to INR 7,259 mn in Q1FY23. Sequentially, revenue increased marginally by 1.47% from INR 8,379 mn in Q4FY23.

The global macroeconomic outlook is likely to remain volatile in the coming quarters with significant geopolitical risks and challenges around inflation and economic growth. Technology advancements and disruption from AI and machine learning are likely to be there at an accelerated pace.

TELX’s revenue for Q4FY24 came to INR 8,379 mn, showing growth of 22.9% YOY and 2.5% QoQ basis. For Q4FY23, revenue from the transportation segment grew by 27.4% YoY, whereas the media and communication segment grew by 9.2% on a YoY basis.

The revenue for TATA Elxsi Ltd (TELX) Q3 FY2023 has improved on a QoQ basis by 7.2% to INR 8177 million in Q3 FY2023 from INR 7632 million in Q2 FY2023 and on a YoY basis by 28.7% from INR 6354 million in Q3 FY2022. This revenue has improved in the European region by 34.7% in Q3 FY2023 from 34.1% in Q2 Fy2023 and from 32.8% in Q3 FY2022.

Tata Elxsi (TELX) reported revenue growth of 4.7% QoQ CC, slightly below our estimate of 5% QoQ CC.