Tata Elxsi delivers steady growth in Q1 FY’25 amidst expanding technology frontiers

Tata Elxsi, recognized globally for its design-led technology services, has reported a promising start to the financial year 2025 with its first-quarter results. The company recorded an operating revenue of ₹926.5 Cr, marking a sequential growth of 2.3% and a year-over-year increase of 9.0%. This financial performance is a testament to Tata Elxsi‘s robust business strategy and operational excellence.

Quarterly Financial Highlights:

– Operating Revenue: ₹926.5 Cr, up 2.3% QoQ and 9.0% YoY.

– EBITDA Margin: 27.2%

– Net Margin (PBT): 26.3%

– Profit Before Tax (PBT): ₹252.4 Cr, a 1.6% increase YoY.

Sector-Specific Achievements:

– Transportation: Achieved a strong 5.3% QoQ growth in constant currency, driven by significant deal wins and advancements in Software Defined Vehicle (SDV) engagements.

– Media and Communications: Faced a challenging environment yet managed a 0.5% QoQ growth in constant currency.

– System Integration Services: Impressive 8.7% QoQ growth in constant currency.

Strategic Insights from Manoj Raghavan, CEO and MD, Tata Elxsi:

“We are pleased with our performance this quarter, achieving notable growth in revenue and maintaining operational excellence. Despite some challenges, such as a one-off exceptional expense and a rise in the effective tax rate, our strategic investments in talent and technology have positioned us well for sustainable growth. We are particularly excited about the advancements in our Transportation sector, which now represents over half of our Software Development & Services business.”

Raghavan also highlighted the company’s ongoing efforts in other sectors, including a notable project in healthcare with the India Neurodiversity Platform, facilitated by Tata Elxsi’s Digital Therapeutics solution, TEcare. This initiative exemplifies Tata Elxsi’s commitment to leveraging advanced technologies like AI and Gen AI across various verticals, enhancing efficiency and fostering innovation.

As Tata Elxsi steps into the second quarter, it remains confident in its healthy deal pipeline and continued business growth across all sectors, especially with new customer acquisitions and expansions.