/newsdrum-in/media/media_files/2025/07/10/tata-elxsi-2025-07-10-18-11-29.jpg)
Representative image
New Delhi: Design and technology services firm Tata Elxsi on Thursday reported a 21.5 per cent decrease in consolidated net profit to Rs 144.36 crore in the April-June quarter of FY26 on account of macroeconomic uncertainties and industry-specific issues impacting R&D spend and decision-making.
It had logged a profit of Rs 184.07 crore in the year-ago period, according to a regulatory filing.
Revenue from operations dropped by 3.7 per cent to Rs 892.2 crore in the first quarter of 2025-26 compared to Rs 926.45 crore in the same quarter of FY25.
Sequentially, profit and revenue fell by 16.2 per cent and 1.7 per cent, respectively.
"This quarter was challenging across key markets, with macroeconomic uncertainties, industry and customer-specific issues impacting R&D spend and decision-making cycles across geographies," Tata Elxsi CEO and MD Manoj Raghavan said.
The company's transportation business, which accounts for over 50 per cent of its overall revenues, reported a 3.7 per cent sequential growth in actual currency terms but remained flat in constant currency terms.
"We are starting to realise the positive impact of large deals won last quarter, including SDV-related deals with Mercedes-Benz and a European OEM, and Suzuki a quarter prior. We are executing on our adjacency strategy, with two strategic deal wins in the quarter. We see continued recovery and growth of our transportation business through the rest of the year, backed by the deals we have won, a healthy pipeline of large deals and new customer logos," Raghavan said.
Tata Elxsi's Media and Communication Business (MCV) reported a sequential decline of 5.5 per cent in constant currency, while the Healthcare and Lifesciences Segment (HLS) dropped 6.7 per cent, quarter-on-quarter.
The company attributed the shrinkage in HLS to tariff-related impact on medical device engineering programmes and spending with two key customers in the US. It expects recovery in MCV and HLS in the upcoming quarters.
"We expect steady improvement in bottom-line and margin through the year even as our two largest businesses, transportation and media & communication, return to growth in Q2 FY26 and beyond, and utilization improves on the back of ready capacity and capability we have invested in over the past few quarters," Raghavan said.
Shares of Tata Elxsi settled 0.21 per cent lower at Rs 6,136 apiece on the BSE on Thursday.