After a weak Q2 showing, Motilal Oswal Financial Services (MOFSL) maintained its ‘Sell’ rating on Tata Elxsi, noting that subdued tech spending in the automotive and media segments continued to drag near-term growth. The brokerage highlighted that margins — once a key strength for the company — have come under notable pressure. MOFSL maintained a cautious stance and values the stock at 31x June 2027 EPS, with a target price of Rs 4,400. Advertisement

The IT firm reported a 32.5 per cent drop in net profit at Rs 154.80 crore for the September quarter compared with Rs 229.40 crore in the year-ago period. Its revenue from operations came in at Rs 918 crore, a 3.8 per cent YoY fall over Rs 955 crore in the year-ago quarter.

Tata Elxsi's revival hinges on a sustained pick-up in OEM spend and

See Full Page