Tata Elxsi, a global leader in design-led technology services, has reported strong performance for the third quarter of the 2024-25 financial year, with operating revenues reaching Rs. 939.2 crore. The company achieved a solid operating EBITDA of Rs. 246.6 crore, with an EBITDA margin of 26.3%, and a Profit Before Tax (PBT) of Rs. 255.8 crore, yielding a PBT margin of 26.1%. Net profit for the quarter stood at Rs. 199.0 crore, reflecting a PAT margin of 20.3%.
Commenting on the results, CEO and Managing Director Manoj Raghavan highlighted the company’s steady performance despite challenges in global markets. He noted the positive impact of Tata Elxsi’s strategic focus on Japan, emerging markets, and opportunities within India, with India revenues growing by 21.9% year-on-year and Japan and emerging markets seeing a 66.8% increase. The company continues to navigate market uncertainties, including geopolitical tensions and currency fluctuations, with a robust outlook for the coming quarters.
Despite challenges in the automotive sector, particularly in the US and Europe, Tata Elxsi has successfully secured large deals and demonstrated significant value to clients. Notably, the company announced the establishment of an Offshore Development Centre for Suzuki Corporation, Japan, to support global software and engineering development across Connected, Autonomous, and Electric technologies. Additionally, Tata Elxsi is set to launch its AVENIR SDV software suite at CES 2025 in Las Vegas, offering a cloud-native platform powered by the Snapdragon Digital Chassis, developed in partnership with Qualcomm.
In its Media & Communication segment, Tata Elxsi reported growth despite typical seasonal softness, with a notable new multi-year deal with a US-based MSO. The Healthcare & Lifesciences business showed a slight QoQ growth of 1.1%, driven by new customer acquisitions and increasing demand for AI-powered solutions in regulatory and digital engineering. Meanwhile, the company is shifting its Systems Integration (SIS) business towards annuity and service-based revenue models, following delays in large project decisions.
Looking ahead, Tata Elxsi is confident in its continued growth across key sectors, including automotive, media, healthcare, and communications. The company anticipates further growth in automotive deals, a recovery in the media & communications and healthcare sectors, and the successful execution of strategic deals in the upcoming quarters.
