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- 21 Apr 2025
- ICICIdirect Research
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TATA ELXSI FOR Q4FY25 REPORTED REVENUE OF ₹908.3 CRORE
TATAELXSI - 5986 Change: -114.00 (-1.87 %)News: Tata Elxsi for Q4FY25 reported revenue of ₹908.3 crore, down 3.3% QoQ/ 0.3% YoY. In CC terms the revenue declined 5.3% QoQ/2.9% YoY. Vertical wise in CC terms, Transportation (53.4% of mix) and Media & Communication (32.4% of mix) de-grew by 9.7% and 6.3% QoQ respectively while Others (1.2% of revenue mix) and Healthcare & Lifesciences (13% of mix) grew by 40% and 3.5% QoQ. The absolute EBITDA stood at ₹207.7 crore (down 15.8% QoQ/20.5% YoY) while EBITDA margin contracted by ~340 bps QoQ to 22.9%. The PAT of the company came at ₹172.4 crore, down 13.4% QoQ/12.4% YoY. For FY25 it reported revenue of ₹3,729 crore, up 5% YoY (+3.1% YoY in CC terms). The EBITDA margins stood at 26.1%, down ~340 bps YoY.
View: The company continues to invest aggressively in digital and GenAI initiatives across verticals, with over 70% of its workforce now AI-ready. While the Automotive segment of transportation vertical (down 9.7% QoQ CC) was impacted by paused programs and delayed ramp-ups, it secured a strategic €50 million multi-year SDV and software engineering deal with a leading European OEM, set to ramp up Q1FY26 onwards. In the Media & Communications business (down 6.3% QoQ CC), client-specific challenges and cautious R&D spending weighed on performance, but were partially offset by major wins, including the company’s largest-ever $100 million+ multi-year product engineering consolidation deal with a marquee operator and a $10 million consolidation deal for a streaming video platform with a global broadcaster. On the other hand, healthcare (up 2.5% QoQ CC) saw new customer wins and traction from digital and GenAI powered offerings. Notably, profitability remained under pressure, reflecting a tough macro environment.
Impact: Negative