Tata Elxsi Shares Fall 4% After Q4 Miss; Morgan Stanley Cuts Target Price

Tata Elxsi Shares Slip 4% After Q4 Topline Miss; Morgan Stanley Cuts Target.

Shares of Tata Elxsi declined करीब 4% on April 22 after the company reported its Q4 FY26 results, with concerns emerging over weaker-than-expected revenue performance.

Despite the drop in share price, the company posted a strong recovery in profitability. Net profit more than doubled to ₹220 crore in Q4 FY26, compared to ₹109 crore in Q3 FY26. The previous quarter’s earnings were impacted by an exceptional loss of ₹95.7 crore related to labour code changes.

This sharp rebound also ends a five-quarter streak of declining profits, signalling improved operational performance.

However, investor sentiment remained cautious after Morgan Stanley significantly reduced its target price, citing a miss in topline growth and ongoing demand concerns in key segments.

The stock reaction reflects market's focus on revenue growth sustainability rather than short-term profit recovery.