Tata Elexi Shares: Brokerages appear to be losing confidence in Tata Elexi shares. Despite the stock market rally today, the stock is seeing a decline. This is following the June quarter results.

Tata Elxsi Share sees a sharp decline; brokerage advises selling.

Tata Group Shares: Brokerage confidence in IT company Tata Elxsi's shares has been shaken. Following Wednesday's market rally, its shares fell by more than 6%, hitting a 52-week low of ₹3,473.75. This decline in the company's shares follows the release of its June quarter (Q1FY27) results.

How was the company's performance in Q1?

Tata Elxsi's net profit for the quarter ended June 30, 2026, was ₹170.6 crore, an increase of 8.2% compared to the same quarter last year. Operating revenue also increased 14.5% year-on-year (YoY) and 2.8% quarter-on-quarter (QoQ) to ₹1,021.1 crore. The company's operating performance was also strong, with EBITDA increasing 15.7% year-on-year to ₹216 crore.

The company's EBITDA margin stood at 21.2% and net profit margin at 16.1%. However, revenue from Europe declined by 1.9% compared to the previous quarter. This was largely due to continued weakness in automotive spending. Tata Elxsi said that delivery mix, higher investments, and annual salary increases have impacted its margins. This IT stock has fallen 13% in the past one month, 22% in three months, 36% in six months, and 45% in the past one year. Tata Elxsi touched its 52-week high of Rs 6,423.10 in July last year and is now trading around 46% below that level.

Brokerage trust has declined.

Motilal Oswal has given a 'Sell' rating to Tata Elxsi shares, with a target price of ₹3,100. The brokerage has lowered its target price on the stock due to a slowdown in auto spending in Europe and the potential for a longer recovery. Kotak Institutional has also given a 'Sell' rating to the stock, with a target price of ₹3,000. Choice Institutional has given a 'Sell' rating to the stock, with a target price of ₹3,150.