India's Tata Elxsi misses Q1 profit expectations as auto industry stalls

Tate & Lyle

10/07/2025 13:51

July 10 (Reuters) - Indian engineering and technology services firm Tata Elxsi TTEX.NS reported a smaller-than-expected first-quarter profit on Thursday as industry-and customer-specific issues affected R&D spend across geographies.

However, the company, which relies heavily on the auto sector, said it expects a steady improvement in margins and profit through the rest of the year, with its main units expected to return to growth in the current quarter.

Tata Elxsi's first-quarter net profit dropped 21.6% to 1.44 billion rupees ($16.8 million), compared to analysts' average estimate of 1.6 billion rupees, according to data compiled by LSEG.

Revenue fell 3.7% to 8.92 billion, missing analysts' estimate of 9 billion rupees. Revenue from its transport unit, its biggest, declined 5.3%.

KEY CONTEXT

The U.S. trade policies have weighed on the auto sector and, in turn, on Indian engineering, research and design (ER&D) firms such as Tata Elxsi that are dependent on outsourced work from U.S. and European clients, analysts have said.

Tata Elxsi, which counts Jaguar Land Rover as its largest client, has said in April that its top customers from the auto industry has paused a number of projects due to tariff issues.

Its peers L&T Technology Services and KPIT Technologies KPIE.NS will report results later this month.

   PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth(%)
Profit growth(%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Tata Elxsi
TTEX.NS
46.38
34.12
6.96
4.42
Sell
12
1.29
1.21
L&T Technology Services
LTEH.NS
31.10
19.65
13.52
12.67
Hold
28
0.96
1.26
KPIT Technologies
KPIE.NS
37.94
22.64
13.37
6.95
Buy
17
0.91
0.67
Tata Technologies
TATE.NS
38.21
27.99
3.44
7.35
Sell
10
1.12
1.19

 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

   APRIL-JUNE STOCK PERFORMANCE

-- All data from LSEG

($1 = 85.6620 Indian rupees)

TTEX https://tmsnrt.rs/4eGD5VB

 (Reporting by Aleef Jahan; Editing by Savio D'Souza)

 ((aleefjahan.cs@thomsonreuters.com))