Particle.news
Download on the App Store

Tata Elxsi Q3: Margins Improve, Profit Hit by One-Off as Shares Slip

Expensive valuations and an exceptional labour-code adjustment kept investor sentiment cautious.

Overview

  • Revenue rose 3.9% quarter-on-quarter to Rs 953 crore, with EBIT up 17.4% and the operating margin expanding to 20.9% from 18.5%.
  • Reported net profit fell 29.7% QoQ to Rs 109 crore, while profit excluding the New Labour Code exceptional item stood at Rs 179.1 crore.
  • Shares traded down about 2.5% near Rs 5,649 after the release, as the stock’s roughly 52x P/E contrasted with the Nifty’s ~22x.
  • Nirmal Bang upgraded the stock to Hold with a Rs 5,764 target, whereas MOFSL and Choice Broking reiterated Sell calls with Rs 4,700 targets; Bloomberg’s average 12‑month target implies about an 11% downside.
  • Growth was led by Transportation (up 7.7% QoQ) as Media & Communications and Healthcare declined, with management signaling a recovery in those verticals from Q4.