Tata Elxsi announced its Q3 FY25 financial results today, reporting revenue from operations at ₹939.17 crore, reflecting a 1.6% sequential decline from ₹955.08 crore in Q2 FY25 but a 2.7% YoY growth compared to ₹914.23 crore in Q3 FY24. The company’s net profit for the quarter stood at ₹199 crore, registering a decline of 13.1% QoQ from ₹229 crore and a 3.4% decline YoY from ₹206 crore.
Key Highlights
- Revenue from Operations: ₹939.17 crore (down 1.6% QoQ; up 2.7% YoY)
- Net Profit: ₹199 crore (down 13.1% QoQ; down 3.4% YoY)
Tata Elxsi reported a 7.7% decline in EBIT for Q3 FY25, which stood at ₹220.7 crore compared to ₹239.2 crore in the previous quarter. The EBIT margin also contracted to 24.2%, down from 25.7% QoQ, reflecting the impact of higher costs and market challenges on operational efficiency.
Tata Elxsi achieved several milestones during the quarter, including the launch of the AVENIR SDV software suite at CES 2025 and securing new customer wins in Healthcare & Lifesciences. The company also celebrated several large automotive deal wins, along with the inauguration of a new Offshore Development Center (ODC) in Pune for Suzuki Motor Corporation and the Center of Excellence for Test Automation (CETA) lab in Frankfurt. Adding to its accolades, Tata Elxsi received the Top 75 Innovative Company Award for 2024.
Business Highlights:
- Automotive Sector: Despite industry challenges, Tata Elxsi continued to deliver on large automotive deals and demonstrated value to customers.
- Media & Communication: Achieved QoQ constant currency growth and won a multi-year deal with a US-headquartered MSO.
- Healthcare: Witnessed steady growth, driven by Gen AI-powered regulatory and digital offerings.
Mr. Manoj Raghavan, CEO and Managing Director, Tata Elxsi, commenting on the company’s performance in the third quarter of FY25, said:
“We are happy to report a steady quarter with revenue from operations at Rs. 939.2 crores. During the quarter, EBITDA margins stood at 26.3% and the PBT margin was reported at 26.1%. We continue to see positive outcomes of our strategic business focus on Japan, emerging markets and capitalising on the India opportunity. During the quarter, our revenue from India has grown by 21.9% YoY, while Japan and emerging markets grew at 66.8% YoY. This will serve us well over the next few quarters even as we navigate geopolitical uncertainty, currency volatility and industry specific challenges in Europe and US. The automotive industry has seen significant business challenges in the past few months, with OEMs especially in the US and Europe reporting sales and growth challenges in their major markets. This has impacted new deal closures, and Tier 1 supplier spend. Amidst this business environment, Tata Elxsi continues to do well to win and execute on the large deals won over this year and demonstrate differentiated value to customers, to protect and grow revenues in a difficult quarter for the entire automotive industry. During the quarter, we announced an Offshore Development Centre for Suzuki Corporation, Japan to support their global technology, software and engineering development. Suzuki’s Chief Technology Officer, Katsuhiro Kato highlighted the importance of the centre as a strategic and core component of Suzuki’s innovation strategy, helping it accelerate software and virtual development across Connected, Autonomous and Electric technologies. We are delighted to be launching our AVENIR SDV software suite at the CES 2025 Conference in Las Vegas, the premier global showcase for technology innovation. AVENIR encompasses a cloud-native virtual development platform and a hybrid global validation platform, and is powered by the Snapdragon Digital Chassis platform, in partnership with Qualcomm. We offer a compelling proposition of a ready-to-adopt solution, coupled with deep digital and software expertise and scaled talent base, to help global OEMs shift-left and accelerate their SDV and future mobility roadmaps.
