Tata Elxsi Shares in Focus: Released Strong Q2FY25 Results

Tata Elxsi, a global leader in design-led technology services, has reported its Q2FY25  results. The company achieved operating revenue of ₹955.1 crore, reflecting a 3.1% quarter-on-quarter growth.

Key drivers of performance included the company’s operational excellence and disciplined fiscal management, which resulted in an expansion of EBITDA margins by 70 basis points to 27.9%. Profit After Tax (PAT) surged by 24.6% QoQ to ₹229.4 crore, bolstered by R&D incentives and tax credits from previous years. Tata Elxsi’s strategic focus on expanding its presence in Japan and emerging markets, as well as leveraging opportunities in India, is beginning to yield significant growth.

In this quarter, revenue from India grew by 31.2% year-on-year, while Japan and emerging markets experienced remarkable growth of 81.9% YoY. The transportation sector continued to drive the company’s success, with revenue increasing by 8.8% QoQ. 

Tata Elxsi’s robust capabilities in Advanced Driver Assistance Systems (ADAS), Connected, Electric, and Software Defined Vehicles (SDV) have enabled the company to secure substantial contracts with global OEMs, positioning it favourably in the evolving automotive landscape. 

Notably, the company secured a landmark multi-year deal worth US$50 million with a leading European OEM, focusing on SDV and various automotive engineering domains. This strategic partnership will facilitate the development of SDV platforms and the next generation of mobility for this prominent brand.

Additionally, Tata Elxsi announced a strategic collaboration with Nidec Corporation in Japan to advance their group technology initiatives, particularly in the automotive sector. The company also launched a global Next-Gen Mobility Innovation Center in Bengaluru in partnership with Emerson.

While the Media & Communication sector saw a slight decline of 1% QoQ, there are promising signs of growth, particularly in network transformation and digital/Gen AI-led innovations for the future of media.

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