Tata Elxsi FY25 Results: Rs 3,729 Cr Revenue, PAT at Rs 784.9 Cr

Despite a turbulent global environment, Tata Elxsi posted a 5% revenue growth and strong profitability in FY 2025, driven by innovation, AI investments, and design-led services across key verticals.

NEW DELHI (India CSR): The fiscal year 2025 presented a complex global landscape marked by significant uncertainty, geopolitical tensions, and the burgeoning narrative surrounding Artificial Intelligence. In this environment, Tata Elxsi Limited, a leading provider of Engineering Research & Design (ER&D) services, demonstrated operational resilience and reported a modest increase in its financial performance, as detailed in its Integrated Annual Report for FY 2025. The report highlights the company’s strategic focus on design-led digital offerings, innovation, and sustainability in navigating these challenges and positioning for future growth.

Overview: Tata Elxsi FY 2025

Overall Financial Performance

For the financial year ended March 31, 2025, Tata Elxsi’s operating revenues reached Rs. 3,729 crores, reflecting a year-on-year (YoY) growth of 5.0%. This growth was primarily driven by volume, with a constant currency growth rate of 3.1% YoY.

Despite the challenging backdrop, the company maintained sustained profitability. The Profit Before Tax (PBT) for FY 2024-25 was recorded at Rs. 1,028.4 crores. Profit After Tax (PAT) stood at Rs. 784.9 crores. The Earnings Per Share (EPS) for the year was Rs. 126.03. The EBITDA (operating profit) reached Rs. 972.9 crores, resulting in an EBITDA margin of 26.1%, reflecting operational resilience. The total income during the year increased by 6.40% to Rs. 3,908.36 crores from Rs. 3,674.10 crores in the previous financial year.

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The financial performance remained stable over the year, with each business segment adapting to market fluctuations while focusing on innovation and resilience.

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Revenue Contribution by Business Segments

Tata Elxsi’s operations are primarily powered by three strategic business verticals that cater to evolving industry needs: Transportation, Media & Communications, and Healthcare & Life Sciences. In FY 2024-25, these segments contributed significantly to the company’s revenue.

• Transportation: This segment accounted for more than 50% of the company’s operating revenue. In FY 2024-25, the Transportation business clocked Rs. 1,961.9 crores in topline, demonstrating a 13.8% year-on-year growth. The company maintained its growth trajectory by pivoting revenue share towards OEMs, securing multiple large deals for EV and AD/ADAS programmes. Notably, 69% of the total vertical business was attributable to OEMs in FY25. Key achievements included a landmark US$ 50 Million multi-year deal with a European global OEM for SDV platform development and next-generation vehicle engineering, and inaugurating the Suzuki–Tata Elxsi Offshore Development Centre in Pune to advance Suzuki’s green mobility vision.
• Media & Communications: This business reported revenue of Rs. 1,175.6 crores in FY 2024-25. While this segment reported muted numbers for the year, the company won a landmark multi-year product engineering consolidation deal worth over US$ 100 Million from a leading operator – the largest deal win in its history. Other wins included a US$ 10 Million strategic deal with a global broadcaster for streaming video platform engineering and being selected to revamp the flagship sports platform of a leading Middle East broadcaster, incorporating advanced UI/UX design and AI-driven features.
• Healthcare & Life Sciences: This segment reported revenue of Rs. 446.6 crores in FY 2024-25. The company is increasingly optimistic about the growth prospects in this area, with several client opportunities progressing well. The healthcare business added 13 new logos during the year. Strategic wins included a multi-year large deal with a top 5 U.S.-based medical devices company for data engineering services, and collaboration with a leading European renal care MedTech company to enhance software functionality, cybersecurity, and interoperability for critical care devices.

Beyond these core verticals, the company began positioning itself in the Semiconductor, Defence & Aerospace segments during FY 2024-25, securing engagements in these areas.

Performance by Service Lines

Tata Elxsi operates across two core domains: Software Development & Services (SDS) and Systems Integration & Support (SIS).

• Software Development and Services (SDS): This segment accounted for 97% of the company’s turnover. SDS revenue was Rs. 3,617.3 crores, reflecting a year-over-year growth of 4.8% during FY 2024-25. SDS provides design, software, and digital solutions across verticals, embedding its design services through a design-led approach to gain early insights into customer product roadmaps and facilitate larger downstream development agreements.
• Systems Integration and Support (SIS): This business accounted for 3% of the turnover. SIS revenue was Rs. 111.7 crores, reflecting a year-over-year growth of 12.5% during FY 2024-25. The SIS business is pivoting towards value-added professional services and monitoring and management of cloud-based applications for enterprises, aligning with the three main verticals. The SIS business experienced a revenue impact due to delays in decision-making on large projects but remained focused on securing and executing these projects. To mitigate fluctuations, the business is actively transitioning from a project-based model to annuity and service-based revenue.

Geographic Revenue Distribution

The company continued to deepen its presence across key markets. In FY 2024-25, the geographic contribution to revenues was:

• Europe and the UK: 40.8%
• Americas: 31.4%
• Rest of the World (including India): 27.8%

While mature markets like North America and Europe presented macroeconomic difficulties, strategic growth in India, Japan, and other emerging markets provided a critical offset. The offshore revenue contribution during the financial year was 74.0%.

Investments in AI and Innovation

A significant narrative of FY 2024-25 on the technology side was the rise of AI. Tata Elxsi made considerable investments in AI and Generative AI (Gen AI), which began showing results during the year. These investments are helping build great products and services for customers at speed, benefiting engagements through faster project execution, improved quality, and superior customer satisfaction. The company is embedding AI/Gen AI deeply into products, platforms, and service delivery across its chosen industries. Examples include RDK Assist, a Gen AI-powered tool for Media & Communications, IRIS, an Advanced Industrial AI Platform for Smart Manufacturing, and the Fleet Edge driver scoring platform in collaboration with Tata Motors for Mobility.

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Key Products and Platforms

Tata Elxsi’s products and platforms gained traction in FY 2024-25, registering multiple wins and maturing across geographies. The focus is on bringing non-linearity to the business using these offerings.

• AVENIR: Tata Elxsi’s SDV software suite, a cloud-agnostic framework for SDV development, validation, and deployment, has strengthened capabilities in the SDV domain. It presents a ready-to-implement solution combined with the company’s expertise to help global OEMs expedite their SDV and future mobility strategies.
• NEURON: The company’s autonomous network platform enables telecommunication operators to progress towards Zero-Touch Automation, providing a single pane of glass to operate and manage networks across domains. NEURON helps streamline operations and drive substantial reduction in operational expenditure. NEURON was selected by a major North American telecom operator to power network transformation and automate operations for next-gen 5G networks.

Sustainability and Environmental Stewardship

Sustainability is integrated into all aspects of Tata Elxsi’s business. The company has made significant progress towards its environmental goals.

• GHG Emissions Reduction: Tata Elxsi successfully achieved a 64% reduction in GHG emissions intensity per Million US$ by transitioning to renewable energy, compared to the baseline year of 2020-21. The target is to become carbon neutral by 2030. The reduction in Scope 1 & Scope 2 emission intensity (vs base year 2020-21) was reported as 50%.
• Renewable Energy Integration: Renewable energy now constitutes 51% of the total electricity use. This was achieved through initiatives like opting for green energy, procuring green power directly from utility providers, installing rooftop solar projects, and increasing the share of renewables through Power Purchase Agreements and Green Tariffs.
• Waste Management: The company achieved ZERO waste-to-landfill. Proactive waste management strategies ensured 100% wastewater recycling. All solid waste is segregated at source and disposed of according to local regulations.

Corporate Social Responsibility (CSR)

Tata Elxsi’s CSR initiatives align with its commitment to driving innovation, fostering sustainability, and embracing social responsibility. Anchored by a comprehensive governance framework and employee involvement, the programs focus on community health, education, and sustainability, covering over 75,000 individuals through healthcare access and supporting over 7,200 students. CSR activities are designed to create tangible and sustainable value for the communities served. The total amount spent on CSR projects and administrative overheads for FY 2024-25 was Rs. 13.49 crores. The average net profit for CSR calculation was Rs. 766.23 crores, requiring an obligation of Rs. 15.32 crores. The shortfall of Rs. 1.83 crores was transferred to the unspent CSR account for multi-year projects.

ALSO READ | Tata Elxsi Spent Rs 13.5 Crore on Corporate Social Responsibility (CSR) in FY25

Governance and Compliance

The company is committed to strong governance, with policies governing all aspects of business operations, available on its website. Key managerial personnel as of March 31, 2025, included Mr. Manoj Raghavan (Managing Director & CEO), Mr. Gaurav Bajaj (Chief Financial Officer), and Ms. Cauveri Sriram (Company Secretary & Compliance Officer).

The company’s Board of Directors comprised six directors as of March 31, 2025, including three Independent Non-Executive Directors, two Non-Independent Non-Executive Directors, and one Managing Director & CEO. Significant changes during the year included the cessation of Mrs. Shyamala Gopinath and Mr. Sudhakar Rao as Independent Directors and the appointment of Mr. Soumitra Bhattacharya and Ms. Ashu Suyash as Independent Directors. The re-appointment of Prof. Anurag Kumar as a Non-Executive, Independent Director for a second term is proposed at the upcoming AGM.

The 36th Annual General Meeting (AGM) is scheduled for Wednesday, June 25, 2025, at 10:30 a.m. IST via Video Conferencing/Other Audio Visual Means. The Board has recommended a final dividend of Rs. 75 per share (750%) for FY 2024-25, subject to shareholder approval at the AGM. This compares to a dividend of Rs. 70 per share (700%) in the previous fiscal year. The dividend, if approved, will result in an outflow of Rs. 467.13 crores.

Related Party Transactions

The company routinely enters into transactions with its group companies in the ordinary course of business. Material related party transactions require prior approval of shareholders. For FY 2025-26, the company proposes to enter into material related party transactions with Jaguar Land Rover Limited, UK (JLR), a subsidiary of Tata Motors Limited and a related party, for an amount not exceeding Rs. 1,200 crores, subject to shareholder approval at the AGM. This is an increase from the aggregate amount approved for FY 2024-25, which was up to Rs. 1,000 crores. Transactions with JLR involve providing design, technology, and engineering services. The total value of transactions with JLR during FY 2024-25 was Rs. 856.47 crores.

Share Capital and Stock Options

As of March 31, 2025, the paid-up equity share capital of the company was Rs. 62.28 crores, comprising 6,22,84,124 equity shares of Rs. 10 each. During the year, the paid-up capital increased due to the issue and allotment of 7,684 equity shares following the exercise of Performance Stock Options (PSOP) by eligible employees under the Tata Elxsi Limited Performance Stock Option Plan 2023.

The total workforce at the end of FY 2024-25 was 12,414, with an employee attrition rate of 13.3%, which is reported to be amongst the best in the industry.

Looking Ahead

Tata Elxsi remains focused on managing controllable factors amidst global macroeconomic and geopolitical uncertainties. Strategic priorities include investing in next-generation technology offerings, focusing on India and emerging markets, and entering new verticals such as aerospace and defence. The company believes that its design-digital capabilities and differentiated value proposition will drive sustainable growth.

(India CSR)