Tata Elxsi shares fall 3% after Q2 profit falls 32.5% YoY but rises sequentially

Tata Elxsi reported a 32.5% year-on-year decline in Q2FY26 net profit to Rs 154.81 crore, though sequential growth of 7.2% provided a modest silver lining. Revenue fell to Rs 918.1 crore, with EBITDA margins contracting to 21%. Weakness persisted in healthcare, while Media & Communications and Transportation segments remained resilient. Motilal Oswal maintains a sell rating.