Tata Elxsi Q2 FY27 Results (NSE: TATAELXSI)
Signal: Steady quarter
The read
The trajectory is steady rather than accelerating: revenue grew 14.98% YoY and 3.39% QoQ, but PAT growth at 9.99% lagged revenue as employee costs rose 15.08% and other income fell 28.47%; software services delivered the operating momentum, while the filing does not disclose enough margin data to confirm the promised margin recovery.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,055.66 Cr | +14.98% | +3.39% |
| Net profit | ₹170.3 Cr | +9.99% | |
| EPS | ₹27.34 | +10.02% |
P&L walk
Revenue increased to ₹1,05,565.73 lakh, +14.98% YoY and +3.39% QoQ, with software services driving growth; PAT rose 9.99% YoY to ₹17,029.92 lakh, while employee costs grew 15.08% YoY and other income fell 28.47% YoY.
Segments
Software development and services remained the clear driver, contributing ₹1,02,786.76 lakh of revenue and ₹31,344.17 lakh of segment result, up 15.00% and 17.29% YoY respectively; system integration was smaller at ₹2,778.97 lakh of revenue but its result rose 98.02% YoY to ₹591.52 lakh.
Key positives
- Software development and services revenue increased 15.00% YoY to ₹1,02,786.76 lakh, with segment result growing faster at 17.29% to ₹31,344.17 lakh.
- System integration and support services result increased 98.02% YoY to ₹591.52 lakh, despite the segment's smaller ₹2,778.97 lakh revenue base.
- Operating cash flow rose 40.66% YoY to ₹37,385.31 lakh versus PAT of ₹34,089.79 lakh for H1FY27, indicating strong cash conversion.
- EPS grew 10.02% YoY to ₹27.34, tracking PAT growth without a material dilution signal.
Key concerns
- PAT growth of 9.99% YoY lagged revenue growth of 14.98%, while employee benefits expense rose 15.08% to ₹62,009.62 lakh.
- Sequential momentum moderated: revenue grew 3.39% QoQ, but PAT declined 0.18% and EPS declined 0.15%.
- The filing does not disclose EBITDA or EBIT margin, limiting confirmation of the margin recovery trajectory after the prior-quarter margin headwinds.
Research and educational content only. Not investment advice.