Tata Elxsi Slides On Weak Q1 But Technicals Hint At A Recovery: SEBI RAs Flag Key Levels To Watch
Synopsis
Tata Elxsi's quarterly results revealed a broad-based shortfall in revenue growth and operational metrics, while analysts are watching for a potential technical rebound.
Shares of Tata Elxsi are under pressure after the company’s Q1 FY26 earnings missed expectations on both growth and margin metrics.
At the time of writing, shares of Tata Elxsi were trading at ₹5,919, down 3.6% on Friday.
SEBI-registered research analyst Rajneesh Sharma said that while the numbers were disappointing, technical indicators suggest the possibility of a rebound.
The company’s revenue fell 3.7% year-on-year to ₹892.10 crore, while profit before tax dropped 22.2% to ₹196.35 crore. Net profit declined 21.6% to ₹144.37 crore, with earnings per share at ₹23.18.
Operating profit margin stood at ~22%, down from ~27.3% in the year-ago quarter. Total expenses rose 3.9% year-on-year, while other income increased 19.9%.
According to Sharma, Tata Elxsi’s actual performance missed all five management targets for the quarter.
These included low single-digit QoQ revenue growth, margin expansion to 25–27%, utilization gains, increased contribution from new global clients, and visibility through a ₹1,200 crore backlog.
On the technical front, Sharma highlighted a bullish falling-wedge breakout pattern on the weekly chart, which indicates a potential rebound with volume confirmation. Resistance is seen at ₹6,768 and support at ₹5,803.
The relative strength index (RSI) shows bullish divergence near 48.6, and a sustained close above ₹6,768 with volume may trigger upside targets of ₹7,950–₹9,000.
A drop below ₹5,803 could test support near ₹5,000.
Separately, SEBI-registered research analyst Financial Sarthis flagged muted revenue in constant currency and margin pressures.
Core profit for the quarter stood at ₹186.7 crore, with a margin of 20.9%.
The transportation segment grew 3.7% quarter-over-quarter in reported terms, supported by deals with Mercedes-Benz and Suzuki, while media and healthcare segments declined due to client-specific headwinds.
The analyst noted strategic wins in AI, transportation, and medtech, and said management expects margin improvement and bottom-line expansion through FY26.
On Stocktwits, retail sentiment was ‘neutral’ amid ‘high’ message volume.
The stock has declined 12.2% so far in 2025.
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