How this IT midcap outperformed peers in a brutal year for tech stocks

Strong demand for niche design services used in making electric vehicles has helped one Indian technology company’s stock surge by more than a third this year, even as inflation concerns have battered the sector globally.

Shares of . have jumped 37% in 2022, topping a gauge of Indian tech firms that has shed 28% with all but two stocks in the red. The company’s sales and profits have climbed on large deals for cloud-based platforms and artificial intelligence used to improve products and customer experience.

Tech Stocks in India Join Nasdaq in Worst Loss Since 2008: Chart

Tata Elxsi’s orders remain robust even as the global economy flashes warning signs, according to Chief Executive Officer Manoj Raghavan. While EV Tesla Inc. has been downsizing some operations amid surging material costs and a weak consumer outlook, the $6.3 billion Indian firm plans to expand.


“From all our major customers, we really have not heard any intent to reduce budgets,” Raghavan said in a conference call Friday. The Bengaluru-based firm could grow its current 10,000 headcount by as much as 50% in the year through March 2023, including new graduates and experienced workers, he said.

The company’s customers include China’s Great Wall Motor Co. and group sibling ., according to data compiled by Bloomberg. Its net income rose 64% from a year ago in three months ended June, on 30% growth in sales.