Tata Elxsi FY2025‑26 Financial Results – Investor Overview
Key Highlights
- Revenue: ₹3,75,742.37 lakhs (↑0.8% YoY) driven 97% by Software Development & Services.
- Net Profit: ₹62,843.03 lakhs (↓20% YoY) after a ₹9,568.88 lakhs exceptional provision for the New Labour Codes.
- Quarterly Profit (Q4 FY26): ₹22,035.13 lakhs; Basic EPS: ₹35.37 (vs ₹17.48 in Q3 FY26).
- Cash & Liquidity: Cash & cash equivalents rose to ₹19,452.12 lakhs; net cash from operations ₹66,398.10 lakhs.
- Dividend: Board recommends ₹75 per share for FY2025‑26.
Financial Performance
| Metric | FY2025‑26 | FY2024‑25 | YoY Change |
|---|---|---|---|
| Revenue (₹ lakhs) | 3,75,742.37 | 3,72,904.83 | +0.8% |
| Net Profit (₹ lakhs) | 62,843.03 | 78,493.68 | -20% |
| EPS (₹) | 35.37 (Q4) | 17.48 (Q3) | +102% |
| Cash at End (₹ lakhs) | 19,452.12 | 13,527.67 | +44% |
Segment Breakdown
- Software Development & Services: Revenue ₹3,66,479.87 lakhs (≈97% of total); profit ₹1,14,902.46 lakhs.
- System Integration & Support Services: Revenue ₹9,262.50 lakhs; profit modest at ₹639.27 lakhs.
Cash Flow Snapshot
- Operating Activities: Net cash generated ₹66,398.10 lakhs (down from ₹81,197.69 lakhs YoY) due to higher working‑capital outflows.
- Investing Activities: Net cash used ₹7,252.09 lakhs (significantly lower outflow than prior year).
- Financing Activities: Net cash used ₹53,478.56 lakhs, mainly dividend payout and lease repayments.
Balance Sheet Strength
- Total Assets: ₹3,96,254.00 lakhs (↑10%).
- Equity: ₹3,04,134.17 lakhs (↑6.5%).
- Leverage: Non‑current liabilities modest at ₹16,420.64 lakhs; current liabilities ₹75,699.19 lakhs.
Regulatory Impact
- The exceptional item of ₹9,568.88 lakhs stems from the New Labour Codes (effective 21 Nov 2025). It reflects a one‑time increase in employee benefit provisions. The company expects future compliance costs to be normalised once the rules are fully clarified.
Dividend & Shareholder Return
- Board’s recommendation of ₹75 per share represents a ~30% increase over the previous year’s payout, indicating confidence in cash generation.
Outlook & Risks
- Opportunities: Continued demand for high‑margin software services; strong cash position enables strategic investments.
- Risks: Potential for additional labour‑law related costs, margin pressure from rising employee expenses, and macro‑economic slowdown affecting client spending.
- Guidance: Management expects revenue to grow in low‑single digits FY26‑27, with profit margins improving as the exceptional labour cost is a one‑off.
Prepared on 21 April 2026 based on Tata Elxsi’s audited FY2025‑26 results.