Analysts Have Made A Financial Statement On Tata Elxsi Limited's (NSE:TATAELXSI) Third-Quarter Report

Last week, you might have seen that Tata Elxsi Limited (NSE:TATAELXSI) released its third-quarter result to the market. The early response was not positive, with shares down 9.7% to ₹6,001 in the past week. Revenues came in 3.7% below expectations, at ₹9.4b. Statutory earnings per share were relatively better off, with a per-share profit of ₹31.94 being roughly in line with analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Tata Elxsi after the latest results.

Check out our latest analysis for Tata Elxsi

Taking into account the latest results, the current consensus from Tata Elxsi's 15 analysts is for revenues of ₹43.3b in 2026. This would reflect a notable 16% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 17% to ₹153. Before this earnings report, the analysts had been forecasting revenues of ₹45.2b and earnings per share (EPS) of ₹161 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The analysts made no major changes to their price target of ₹6,550, suggesting the downgrades are not expected to have a long-term impact on Tata Elxsi's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Tata Elxsi analyst has a price target of ₹8,959 per share, while the most pessimistic values it at ₹5,398. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Tata Elxsi shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Tata Elxsi's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2026 being well below the historical 19% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 14% annually. So it's pretty clear that, while Tata Elxsi's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Tata Elxsi. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at ₹6,550, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Tata Elxsi going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Tata Elxsi's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.