
Tata Elxsi's stock rose almost 6% on Monday morning, defying muted fourth-quarter (Q4) earnings as investors focused on the company's robust deal pipeline and a generous ₹75 per share dividend declaration.
While revenue for the March quarter came in at ₹908.3 crore — largely flat— the company reported a profit drop of 12% at ₹172 crore. On a full-year basis, operating revenue stood at ₹3,729 crore.
Growth was led by the Healthcare & Life Sciences segment but other verticals, particularly automotive and media and communications, faced headwinds due to cautious client spending, delayed project ramp-ups, and ongoing restructuring within customer organisations.
Investors are taking heart from the upbeat management commentary and record deal wins. The company bagged its largest-ever multi-year engineering deal worth over $100 million with a marquee operator in the media space, along with a $10 million streaming platform deal with a global broadcaster.
Despite the short-term slowdown in automotive, the company secured a €50 million software-defined vehicle (SDV) and engineering deal with a leading European OEM that is expected to ramp up in Q1 FY26 and beyond.
Tata Elxsi has also expanded its Healthcare & Life Sciences footprint by onboarding 13 marquee clients and entering innovation-led areas like AI-powered diagnostics and sustainability.
Data from Stocktwits indicates retail sentiment has turned 'extremely bullish' from 'neutral' a week ago, while message volume has turned 'extremely high.'
However, Tata Elxsi stock has fallen 23.6% year-to-date (YTD).
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