Tata Elxsi Q4 FY26 profit up 28% YoY, dividend ₹75

Key takeaway from the March quarter

Tata Elxsi, a design and technology services company, reported a sharp improvement in profitability for the quarter ended March 31, 2026 (Q4 FY26). Consolidated profit after tax (PAT) rose 27.8% year-on-year to ₹220.4 crore from ₹172.4 crore in the year-ago quarter. On a sequential basis, PAT more than doubled versus ₹108.9 crore in Q3 FY26, reflecting a recovery in quarterly earnings. Revenue from operations for the quarter came in at ₹993.8 crore, up 9.4% year-on-year and 4.2% quarter-on-quarter. Alongside the results, the board recommended a final dividend of ₹75 per equity share for FY26, subject to shareholder approval.

Dividend: ₹75 per share recommended for FY26

The company’s Board of Directors recommended a final dividend of 750% which translates to ₹75 per equity share of face value ₹10 for the financial year ended March 31, 2026. The proposal is subject to shareholder approval at the upcoming Annual General Meeting. Tata Elxsi did not announce the record date or payout timeline in the details provided. The dividend level is notable in the context that the company had not announced any interim dividends during FY26.

Q4 FY26 revenue growth and operating performance

Revenue from operations stood at ₹993.8 crore in Q4 FY26, compared with ₹953.5 crore in Q3 FY26 and ₹908.3 crore in Q4 FY25. The company described the quarter as delivering a healthy 4.2% sequential growth. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to ₹244.6 crore, reflecting 10.0% quarter-on-quarter growth. EBITDA margin for the quarter was 24.6%, indicating sustained operating profitability.

Profitability: PBT rises, margins hold firm

Profit before tax (PBT) was reported at ₹267.8 crore in Q4 FY26. This represented 10.7% growth quarter-on-quarter and 20.9% growth year-on-year. PBT margin for the quarter was 25.6%, pointing to stable conversion from revenue to pre-tax profit. PAT margin was reported at 21.1% for the quarter. The company also disclosed that Q3 FY26 and FY26 margins exclude a one-time exceptional item due to the new labour code.

Sequential jump in profit and the exceptional item context

The quarter-on-quarter jump in PAT was sharp, rising from ₹108.9 crore in Q3 FY26 to ₹220.4 crore in Q4 FY26. The information provided linked this recovery to the absence of a one-time exceptional charge recorded in the previous quarter. That exceptional charge was stated at ₹95.7 crore, related to employee benefit provisions arising from new labour codes. Total expenses for Q4 FY26 increased to ₹776.6 crore from ₹757.6 crore in Q3 FY26, indicating a moderate rise even as profitability improved.

Segment note: Media and Communications contribution

CEO and Managing Director Manoj Raghavan said the company registered healthy quarter-on-quarter growth. He highlighted the Media and Communications business as a contributor, accounting for 32.7% of revenue during the quarter. The segment registered 5.6% quarter-on-quarter growth in constant currency terms over the previous quarter, as per the CEO’s comment. Tata Elxsi provides design and technology services across industries including automotive, broadcast, communications, healthcare, and transportation.

Full-year FY26 snapshot

For the full year FY26, Tata Elxsi reported revenue of ₹3,757.4 crore, compared with ₹3,729.0 crore in FY25. Annual net profit for FY26 was ₹628.4 crore, lower than ₹784.9 crore in FY25, with the exceptional labour-code-related impact cited as a key reason in the provided details. Full-year PBT for FY26 was ₹825.1 crore versus ₹1,028.4 crore in FY25. The company also reported earnings per share (EPS) of ₹100.89 for FY26.

Stock move and market context around the result

Ahead of the quarterly results, Tata Elxsi shares settled 2.97% higher at ₹4,650.7 on the NSE. Over the same session, the Nifty 50 rose 0.87%, indicating the stock outperformed the benchmark on that day. The results and dividend announcement added more data points for investors tracking capital returns, especially since the company had not declared interim dividends during FY26. Analysts tracked by Bloomberg were cited as expecting a wide range for the dividend, from ₹48.49 to ₹95.03 per share, with the declared ₹75 in the upper part of that range.

Key financials at a glance

Profitability bridge and margins: another view

What to watch next

The company’s recommended final dividend of ₹75 per share will need shareholder approval at the upcoming AGM. Investors may also track any further updates on the record date and the dividend payout timeline, which were not provided. Operationally, the quarterly numbers show revenue growth alongside strong margins, while the full-year comparison reflects the impact of exceptional items on FY26 profitability.