Tata Elxsi Shares Drop 3% Amid Q2 Profit Decline
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BTCCSquare news:
Tata Elxsi's shares fell nearly 3% following a 32.5% year-on-year drop in net profit to ₹154.81 crore for Q2 FY26. Revenue from operations declined 4% to ₹918 crore, reflecting broader market challenges.
CEO Manoj Raghavan highlighted strong quarterly growth in overseas markets, particularly the US, which saw a 7.9% increase. The transportation segment, accounting for 53% of revenue, grew marginally by 0.7% amid large deal wins and OEM programs.
Brokerages remain cautious, with Motilal Oswal reiterating a 'sell' rating and a ₹4,400 target price. Margin recovery hinges on improved automotive tech spending and deal execution over the next 6-8 quarters.
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