Tata Elxsi (TATAELXSI) Q4 25/26 earnings summary

Executive summary

• Q4 FY26 revenue reached ₹993.8 crore, up 4.2% QoQ and 9.4% YoY, with strong operational performance, margin improvement, and AI adoption; FY26 revenue totaled ₹3,757.4 crore.

• Media & Communications grew 5.6% QoQ, driven by new deals and a Tier 1 US Telco win; Transportation consolidated after strong Q3, with strategic wins in APAC and US.

• Healthcare and life sciences declined 10.5% QoQ due to delayed deals, but a new offshore development center was launched for Terumo Corporation.

• Advanced GenAI adoption with DevStudio.ai, strategic AI partnerships, and responsible AI embedded across engineering and delivery.

• Audited results for FY 2025-26 were approved, with a recommended dividend of ₹75 per share and an unmodified auditor opinion.

Financial highlights

• Q4 FY26 revenue: ₹993.8 crore (4.2% QoQ, 9.4% YoY); FY26 revenue: ₹3,757.4 crore.

• Q4 EBITDA margin: 24.6%; PBT margin: 25.6%; PAT: ₹220.4 crore; FY26 EBITDA: ₹846.8 crore (22.5% margin); PAT: ₹698.6 crore (17.7% margin).

• Utilization rate for Q4: 73%; attrition rate increased to 15.8%; headcount at 11,540.

• Margin improvement attributed to currency, operating leverage, and salary hike impact.

• Basic and diluted EPS for FY26 were ₹100.89, down from ₹126.03 in FY25.

Outlook and guidance

• FY27 growth expected to be high single-digit, revised from earlier double-digit aspiration due to geopolitical and market uncertainties.

• Margin improvement to continue gradually, targeting 27% PBT margin by Q4 FY27.

• Board recommended a final dividend of ₹75 per share for FY 2025-26.

• Focus remains on scaling design-led, AI-enabled offerings and sustainable growth across all verticals.

• Recovery in healthcare anticipated in Q1 FY27 as delayed deals close.