Tata Elxsi FY2025‑26 Q4 & YTD Results
Key Financial Highlights (Q4)
- Revenue: ₹99,375.12 lakhs (+4.2% YoY)
- Net Profit: ₹22,035.13 lakhs (up from ₹10,889.22 lakhs in Q4 2025)
- Basic & Diluted EPS: ₹35.37
- Exceptional Item: ₹9,568.88 lakhs provision for employee benefits due to the new Labour Codes
- Dividend: Board recommends ₹75 per share for FY 2025‑26
Year‑to‑Date (Apr 2025‑Mar 2026)
- Revenue: ₹3,94,140.06 lakhs (↑ 5.5% YoY)
- Net Profit: ₹62,843.03 lakhs (‑20% YoY)
- EPS (YTD): ₹100.89 (down from ₹126.03)
- Total Comprehensive Income: ₹22,668.28 lakhs
Segment Performance
| Segment | Revenue (Q4) | Profit (Q4) |
|---|---|---|
| Software Development & Services | ₹96,818.85 lakhs | ₹32,034.69 lakhs |
| System Integration & Support Services | ₹2,556.27 lakhs | ₹794.66 lakhs |
The software services arm contributes > 96% of total revenue and continues to drive profitability.
Balance Sheet & Cash Flow
- Total Assets: ₹396,254 lakhs (↑ 10.5% YoY)
- Equity: ₹304,134 lakhs (↑ 6.4% YoY) – equity now 77% of assets.
- Cash & Cash Equivalents: ₹19,452 lakhs (↑ 44% YoY).
- Operating Cash Flow: ₹66,398 lakhs (down from ₹81,198 lakhs YoY).
- Investing Cash Flow: –₹7,252 lakhs (improved from –₹30,828 lakhs YoY).
- Financing Cash Flow: –₹53,479 lakhs (higher outflow mainly due to dividend payout of ₹46,713 lakhs).
Strategic & Regulatory Highlights
- Labour Code Impact: A one‑time provision of ₹9,568.88 lakhs was recorded under Ind AS 19 for the new Labour Codes. This is non‑recurring and should not affect future periods once the transition is complete.
- Dividend Policy: The board’s recommendation of a ₹75/share dividend reflects confidence in cash generation but will reduce free cash for the near term.
- No Subsidiaries/Associates: The company operates without subsidiaries, simplifying governance.
Investor Implications
- Opportunities: Continued revenue growth in high‑margin software services, strong balance sheet, and potential upside once the exceptional labour‑code charge is removed.
- Risks: Lower YTD profitability, reduced operating cash flow, and a sizable dividend that may pressure liquidity.
- Actionable Insight: Monitor Q1 2027 results for profit normalization and cash‑flow recovery; consider the dividend yield versus cash sustainability.
All figures are in Indian Rupees (₹) lakhs unless otherwise noted.