CMP ₹6,291 | Q4 PAT ₹1,724 Cr | EPS ₹27.68 | FY25 PAT ₹7,809 Cr | EPS ₹126+ | P/E ~49x
📌 At a Glance
Tata Elxsi — Tata Group’s niche design-tech gem — just dropped its FY25 results and it’s looking slicker than a UI/UX prototype on Figma.
- 🧾 FY25 Net Profit: ₹7,809 Cr (up 25.2% YoY)
- 🖥️ FY25 EPS: ₹126.03
- 🎯 CMP ₹6,291 = P/E ~49.9x
- 📉 But Q4 PAT down 12% YoY
- 🎨 Business: AI, Automotive, Broadcast, OTT, UI/UX Design, Healthcare Tech — all high-margin, high-fancy sectors
🧾 Q4 FY25 Snapshot
| Quarter | Revenue (₹ Cr) | PAT (₹ Cr) | EPS (₹) |
|---|---|---|---|
| Q4 FY25 | 951.4 | 172.42 | 27.68 |
| Q3 FY25 | 979.0 | 199.00 | 31.95 |
| Q2 FY25 | 1,019.39 | 229.43 | 36.84 |
| Q1 FY25 | 958.53 | 184.08 | 29.56 |
| Q4 FY24 | 939.63 | 196.93 | 31.62 |
🔻 Q4 YoY Net Profit DOWN 12.4%
🔻 EPS dropped from 31.62 ➝ 27.68
🔻 Revenue basically flat QoQ
So while annual EPS looks hot, quarterly momentum is clearly cooling.
📅 Full-Year FY25 vs FY24
| Metric | FY25 (₹ Cr) | FY24 (₹ Cr) | YoY Change |
|---|---|---|---|
| Revenue | 3,908 | 3,207 | +21.8% |
| Net Profit | 780.9 | 623.5 | +25.2% |
| EPS | ₹126.03 | ₹100.45 | +25.4% |
✅ Strong margin retention
✅ Growth across transportation, media, healthcare segments
✅ But still — that P/E is no joke
🧠 EduInvesting Take: “Tata Elxsi is not a tech stock. It’s a luxury fashion brand… but for code.”
Tata Elxsi is like that kid in IIT who doesn’t just code — he codes beautifully.
Problem? Everyone already knows he’s good — so the stock is always priced like it.
Here’s what the market’s baking in:
- 🎯 ₹8,000 Cr FY26 PAT
- 🎯 ₹150+ EPS
- 🎯 ₹7,500 CMP = Still only ~50x P/E
So if even one quarter flops, stock reacts like your girlfriend saw your old chats.
🔍 Valuation Check
| Metric | Value |
|---|---|
| TTM EPS | ₹126.03 |
| CMP | ₹6,291 |
| P/E Ratio | ~49.9x |
| Industry P/E Avg | ~30–35x |
Elxsi is priced like perfection — zero room for bugs. Even a 2% revenue miss = ₹500 gap down.
📉 Risks & Red Flags
- ❌ Slowing QoQ profit (last 2 quarters show decline)
- ❌ High P/E leaves no buffer
- ❌ Tech budget compression in EU & US (auto + OTT customers)
- ❌ Attrition & wage cost pressures
This isn’t a broken business. It’s a business priced like it’s too perfect to fail.
🔍 Business Segments
- Transportation (Automotive + Rail): EVs, ADAS, digital cockpits
- Media & Broadcast: OTT, UI/UX, IPTV integrations
- Healthcare: Imaging, diagnostics, AI-powered devices
- Design Digital: HMI, UX Labs, Design Thinking services
Every segment is cool. But growth depends on global spending cycles.
🧾 Final EduVerdict: “Elxsi is that Apple Store stock — smooth, rich, and dangerous if you trip.”
- FY25 was solid.
- Q4 was soft.
- CMP is aggressive.
- Outlook? Depends on macro + order wins.
We’re not saying buy, not saying sell — because we like SEBI-free mornings. But if you’re holding this, just remember:
It’s a design stock. And design is all about how it makes you feel… until results break the illusion.
Author: Prashant Marathe
Date: May 23, 2025
Tags: Tata Elxsi, FY25 Results, High P/E Stocks, EPS Fall, Indian IT, Automotive Tech, Design Services, EduInvesting, Satirical Finance, SEBI-Compliant Journalism
