Tata Elxsi Ltd reported a 3% drop in net profit for the first quarter of the financial year 2025. The net profit fell to Rs 184.1 crore from Rs 188.9 crore in the same period last year. This decline is mainly due to higher taxes and increased employee costs.
Despite the profit drop, the company’s revenue rose 9% to Rs 926.5 crore. Most of Tata Elxsi’s revenue (97%) comes from software development and services. The transportation sector is the largest part of this, followed by media, communications, healthcare, and life sciences.
Operating profit (EBITDA) slightly increased to Rs 252.3 crore from Rs 251.5 crore last year, but the EBITDA margin fell to 27.2% from 29.6%. Total expenses rose by 13.1% to Rs 706.1 crore, mainly due to higher employee costs. The number of employees increased to 13,142 from 12,286 last year.
On a quarter-to-quarter basis, net profit fell by 6.5% due to weak performance and lower margins. Revenue increased by 2.3%, but EBITDA fell by 3.5%, and the operating profit margin decreased from 28.8% to 27.2%. Total expenses grew by 4.3%.
CEO Manoj Raghavan stated that the company maintained strong operational performance despite higher taxes and one-off expenses. He also noted a strong growth in the transportation sector, which grew 5.3% sequentially and 20.3% year-on-year.
