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Tata Elxsi Q4 FY26 Results Preview: Tata group design and technology services firm Tata Elxsi is set to stage a stable financial performance when it reports its financial results this week. Analysts expect the company to register a sharp rise in its net profit on account of a lower base due to one-time labour costs.
According to Zee Business research, Tata Exlsi is estimated to register a standalone net profit of Rs 185 crore for the quarter ended March 31, which translates to a rise of 69.9 per cent over the previous three months.
For the quarter ended December 31, the Tata group firm had logged a net profit of Rs 108.9 crore, impacted by an exceptional item due to a one-time increase in labour costs with the implementation of the new labour codes.
Its March-quarter revenue is estimated to be at Rs 996.6 crore, marking a 5.4 per cent rise sequentially, according to the research.
In dollar terms, the company's quarterly revenue is seen coming in at $109 million versus the $107 million it had reported for the December quarter.
The Tata group design and tech service provider is estimated to clinch earnings before interest and taxes (EBIT) to the tune of Rs 210.2 crore for the quarter ended March 31, a rise of 5.4 per cent over the EBIT of Rs 199.4 crore a year ago.
According to the analysts, its margin -- a key measure of profitability -- is estimated to increase by 20 basis points (bps) to 21.1 per cent for the March quarter.
Analysts say the following things will be tracked closely in the tech firm's management commentary:
The Tata group firm staged a largely better-than-expected financial performance for the third quarter of FY26, with the labour codes-related changes denting its profitability.
Tata Elxsi's net profit fell 29.7 per cent to Rs 109 crore, revenue rose 3.8 per cent to Rs 953 crore and EBIT grew 16 per cent to Rs 198 crore.
Zee Business analysts had pegged the Tata group company's net profit at Rs 160 crore, revenue at Rs 949 crore and EBIT at Rs 180 crore.
The Tata Elxsi stock har fallen around 13 per cent so far this year, better than a 6.4 per cent decline in the Nifty50 but worse than a 16 per cent fall in the Nifty IT.
| Stock / index | One-month return (%) | Year-to-date (YTD) return (%) | One-year return (%) |
| Tata Elxsi | 6.8 | -13.2 | -15.2 |
| Nifty 50 | 5.8 | -6.4 | 1.4 |
| Nifty IT | 8.7 | -16.2 | -4.8 |