JP Morgan has reaffirmed its ‘Underweight’ stance on Tata Elxsi, cutting its target price to ₹4,400 after the company reported its third straight quarterly miss on both revenue and margins. In constant currency (CC) terms, revenue declined 5.3% quarter-on-quarter in Q4, with the auto segment down 9.7% and media & telecom falling 6.3%. Healthcare was the lone bright spot, growing 3.5%.
Despite the weak print, JP Morgan noted some silver linings: Tata Elxsi secured two large deals – a €50 million engagement with a European auto OEM and a $100 million consolidation deal in the media & telecom space, both expected to ramp up from Q1FY26.
However, the brokerage remains cautious, citing an uncertain demand environment. It expects the company to post lower growth in FY26 versus FY25, and has accordingly trimmed its FY26E–FY27E earnings estimates by 1–2%.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
