Tata Elxsi Ltd Q2 FY25 — ₹918 Cr Revenue, ₹155 Cr PAT, ₹33,753 Cr M-cap: When Design Thinks It’s Divine
1. At a Glance
Welcome to the land where design meets dividend, and the balance sheet glows brighter than your iPhone screen in dark mode. Tata Elxsi Ltd, the arty cousin of the Tata family, has built a ₹33,753 crore empire designing dashboards, OTT experiences, and occasionally, investor goosebumps.
The latest quarter (Q2 FY25) screamed realism — Revenue ₹918 Cr (-3.9 % QoQ), PAT ₹155 Cr (-32.5 %), yet the street yawns because “it’s Tata Elxsi bro.” The stock trades at ₹5,418, P/E 50, P/B 12.5, ROE 29 %, ROCE 36 %, and dividend yield 1.35 %.
Basically, this is that overachiever who’s suddenly getting B-grades but still wears a “Top Performer” badge.
2. Introduction
Tata Elxsi is not your average IT services firm; it’s the tattooed designer in a room full of corporate accountants. Born in 1989 (yes, older than half the startups today), it lives at the intersection of creativity + code + consulting — and it charges you triple for it.
It helps automakers make smart cars, broadcasters stream smarter content, and hospitals build connected devices that beep aesthetically. When you open your car’s infotainment system or scroll through your Smart TV’s UI — chances are, Tata Elxsi’s fingerprints are on it.
But markets are cruel to art. FY25 started with margin pressure, cautious OEM budgets, and every second analyst asking,
“Boss, where’s the growth?”
Yet, like every Tata child, Elxsi doesn’t play quarterly games. It plays the long game — and long it surely is.
3. Business Model – WTF Do They Even Do?
If TCS writes code for banks, Elxsi writes code that makes your car talk. Let’s decode the madness.
Software Development & Services (SDS ≈ 97 %)
Transportation (53 %) – From ADAS and autonomous systems to digital cockpits and EV platforms. If your car can parallel park itself, thank them.
Media & Communications (33 %) – RDK-based set-top boxes, 5G automation, and the NEURON platform that runs telecom networks.
Healthcare & Life Sciences (13 %) – Connected-care systems, GenAI-based toxicity trackers, and AI for surgical imaging.
Others (1 %) – Because PowerPoint needs a miscellaneous line too.
System Integration & Support (SIS ≈ 3 %)
Design visualization, DevOps security, network migration — basically, the plumbing behind the paint.
Geo split: Europe 42 %, Americas 34 %, India 18 %, RoW 6 %. Onsite/offsite: 27 % vs 73 %. High offshore = high margin = happy CFO.
In short: Tata Elxsi sells brains and beauty as a service.
4. Financial Overview
Source table
Metric
Latest Qtr (Jun 25)
YoY (Jun 24)
Prev Qtr (Mar 25)
YoY %
QoQ %
Revenue
₹ 918 Cr
₹ 926 Cr
₹ 908 Cr
-0.9 %
+1.1 %
EBITDA
₹ 193 Cr
₹ 252 Cr
₹ 208 Cr
-23 %
-7 %
PAT
₹ 155 Cr
₹ 184 Cr
₹ 172 Cr
-16 %
-9.9 %
EPS (₹)
24.9
29.6
27.7
-16 %
-10 %
Commentary: Margins shrunk from 23 % → 21 %. If Elxsi were a Bollywood star, this is its “post-hit flop phase.” Still, profits are healthy and cash flows fitter than your gym plan.
