Tata Elxsi Ltd: Global Leader in Design, Technology, and AI Solutions for Healthcare Industries
Tata Elxsi Ltd: Overview
Tata Elxsi Ltd is a global leader in design and technology services, offering innovative solutions across multiple industries, including Automotive, Media, Communications, and Healthcare. Established in 1989, the company is part of the Tata Group and specializes in providing integrated services that span research and strategy, electronics and mechanical design, software development, validation, and deployment. With a presence in over 30 countries, Tata Elxsi is supported by a network of global design studios, development centers, and offices worldwide. As per revenue bifurcation Software Development & Services contributes about 97% in revenue. And major revenue comes from Europe 42%, USA 34%, and India 18% and 6% Rest of World. Tata Elxsi has successfully launched Neuron, a powerful AI based platform network transformation. It won multi-million deals across domains cloud connection, 5G network, etc.
Business Segments:
- Transportation: Transportation continues to be a strong beacon of growth for Tata Elxsi, powered by landmark deals in the software-defined vehicle (SDV) and electric vehicle (EV) space driven by our differentiated software capabilities. We also have a suite of EV solutions and expertise to provide OEM support for the design and development of inverters, electric motors, and battery management systems for EVs. Software Defined Vehicle Platform is a key trend in the automotive industry, with OEMs investing in developing in-house SDV platforms. With over 1,000,000 vehicles are now powered by TETHER, including personal vehicles, commercial vehicles, and EVs, the potential to leverage this platform for global OEMs are significant.
- Media & Communications: Our Media and Communications vertical posted a modest growth of 0.2% YoY, generating Rs. 1,217.5 crores revenue which comprises 35.3% of SDS operating revenue. Tata Elxsi has been chosen as a strategic partner for transformation of video services across multiple countries for a LATAM headquartered multi-country operator. They launched NEURON, our autonomous network platform that enables telecommunication operators to progress towards Zero-Touch Automation. Serving millions of subscribers with 10,000+ virtualised network functions.
- Healthcare & Life Sciences: The Healthcare & Life Sciences vertical posted a growth of 10.8% YoY, generating Rs. 484.9 crores revenue which comprises 14% of SDS operating revenue. The healthcare industry is at the inflection point of a digital transformation, with more institutions investing into connected and smart devices, shift of operations to digital workflows, usage of analytics and increased awareness of regulatory norms, resulting in the opening of new opportunities to enter the field of digital diagnostics and connected healthcare.
Subsidiary Information:
- The company itself is a subsidiary of Tata Sons Pvt Ltd, which holds 42.2% stake in this company.
Q2 FY25 & Business Highlights
- Revenue of ₹939 crore in Q3 FY25 up by 3% YoY from ₹914 crore in Q3 FY24.
- EBITDA of ₹247 crore in this quarter at a margin of 26% compared to 30% in Q3 FY24.
- Profit of ₹199 crore in this quarter compared to a ₹206 crore profit in Q3 FY24.
- All business segments showed a very less growth due to longer deals, soft quarters, etc. Healthcare segment grew by 1.1% YoY.
- Tata Elxsi launches an ODC in Pune for Suzuki Motor Corporation, Japan, to accelerate software and virtual development for next generation connected, EV, and ADAS technologies.
- Tata Elxsi won a multi-million long-term deal from a leading US headquartered MSO to manage a portfolio of applications that will ramp up over the next two quarters.
- Tata Elxsi selected to develop the next-generation connectivity platform for off-highway operations for a global leader in off-highway vehicles.
Financial Summary
| INR Cr. | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 914 | 939 | 3145 | 3552 |
| Expenses | 644 | 693 | 2182 | 2505 |
| EBITDA | 270 | 247 | 962 | 1047 |
| OPM | 30% | 26% | 31% | 29% |
| Other Income | 35 | 40 | 74 | 122 |
| Net Profit | 206 | 199 | 755 | 792 |
| NPM | 23% | 21% | 24% | 22% |
| EPS | 33.2 | 31.95 | 121.3 | 127.2 |