The improvement was supported by growth in the company’s transportation and media segments, along with large deal wins and strong client additions across key verticals.ALSO READ | Persistent Systems target cut by analysts on rich valuations, soft FY27 outlook
However, revenue growth remained softer than estimates. Constant currency revenue rose 0.9%, below expectations of 1.5%. For the full year, constant currency revenue declined 5.5%.
|
|
Q2FY25 |
Q3FY25 |
Q4FY25 |
Q1FY26 |
Q2FY26 |
Q3FY26 |
Q4FY26 |
|
Re Rev |
955.08 |
939.17 |
908.3 |
892.1 |
918 |
953.5 |
993.8 |
|
Rev QoQ % |
3.1% |
-1.7% |
-3.3% |
-1.8% |
2.9% |
3.9% |
4.2% |
|
Rev YOY % |
8.3% |
2.7% |
0.3% |
-3.7% |
-3.9% |
1.5% |
9.4% |
|
|
|
|
|
|
|||
|
EBITDA% |
27.9% |
26.3% |
22.90% |
20.90% |
21.05% |
23.30% |
24.60% |
|
PAT |
229.43 |
199 |
172.4 |
144.36 |
154.8 |
109 |
220.35 |
Margins, on the other hand, came in stronger than expected, with EBIT margin at 22.3%, ahead of the estimated 21.5–22% range.
Recovery hopes intact, but outlook moderatedBrokerage firm Morgan Stanley has an ‘Underweight’ rating on Tata Elxsi and has cut its price target by 21% to ₹4,200 from ₹5,350 earlier. The brokerage said Q4 performance missed its estimates, although margins came in ahead of consensus.
Management has kept hopes of a recovery alive for FY27 but has moderated its growth expectations.
The company reported constant currency revenue growth of 0.9% QoQ in Q4FY26, below the estimated 1.5%, largely due to weakness in the healthcare segment.
EBIT missed Morgan Stanley’s estimates by 3.4% but beat consensus by 4%, while net income came in ahead of both estimates, supported by a lower tax rate.
Morgan Stanley now expects 6.9% revenue growth in constant currency terms for FY27, down from its earlier forecast of 10.4%.
The company also announced a dividend of ₹75 per share.
Shares of Tata Elxsi ended 3.17% higher on Tuesday at ₹4,660, taking gains for the year so far to around 11%.
First Published: Apr 22, 2026 6:55 AM IS
