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Tata Elxsi Shares Today: Tata Elxsi shares dropped over 2 per cent in early trade on Friday, following a sharp decline in its second-quarter profit. The stock was trading at Rs 5,444 on the NSE around 11:05 am, reacting to earnings released post-market on Thursday.

The Tata Group technology and design services company posted a net profit of Rs 154.82 crore for Q2 FY26, down 32.5 per cent from the same quarter last year. Revenue from operations slipped 4 per cent to Rs 918.10 crore. EBITDA for the quarter stood at Rs 193.3 crore, with a margin of 21.1 per cent. Sequentially, there were signs of stabilisation, though the results missed street expectations.

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Motilal Oswal Financial Services kept a ‘Sell’ rating on Tata Elxsi, with a target of Rs 4,400, suggesting over 21 per cent downside. The brokerage flagged weak tech spending in automotive, execution delays, and continued softness in the media segment.

“Management expects a stronger second half and double-digit growth in FY27, but near-term growth is likely to remain patchy,” the brokerage noted.

HDFC Securities maintained an ‘Add’ rating, with a target price of Rs 5,765, implying modest upside of around 3 per cent. The brokerage highlighted Tata Elxsi’s positioning to benefit from offshoring trends in the automotive sector.

“Europe and Japan are showing traction as OEMs restart investments. EBIT margins are expected to improve as utilisation rises to 75 per cent by FY26 and 80 per cent by FY27,” HDFC Securities said.

Analysts say the stock’s movement in the near term will hinge on recovery in automotive and media demand, as well as margin trends. 

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Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate affairs, with prior stints at Business ...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.