New Delhi/Bengaluru, July 10 -- A decline in Jaguar Land Rover's sales this fiscal year may drag down business for Tata Elxsi Ltd and Tata Technologies Ltd, which get more than a fifth of their revenues from the British subsidiary of Tata Motors Ltd. Business was already slowing for Tata Elxsi and Tata Technologies, after their European auto clients came under stiff challenge from Chinese rivals. With JLR expecting lower revenue and profit this financial year, things may be about to get worse. "JLR's cash flow constraints may delay discretionary spends, but key strategic tech tie-ups are likely to stay on track," said Sanket Kelaskar, analyst, institutional equity at Ashika Group. In April-June, the maker of Range Rover SUVs sold 87,286 units, down 11% from a year earlier. One key reason: A pause in shipments to the US in April, after president Donald Trump's administration slapped 25% tariffs on all automobile imports. Analysts at Nirmal Bang said in a 24 May note that the impact of JLR's slowdown is one of the top challenges for Pune-based Tata Technologies. "Near-term challenges due to: a) Tariff-led uncertainty and deferring of targets by anchor client (JLR); b) lumpiness in technology business; and c) slowdown in EVs and project cut-down at new-age automotive companies will keep valuation under check followed by a lower earnings growth in FY26," Nirmal Bang analysts Vaibhav Chechani and Suket Kothari said in the note. Analysts note a similar impact on Tata Elxsi, which counts JLR as an important client. In an 8 June note, analysts at Kotak Institutional Equities wrote that the company recorded an 8% decline in revenue from JLR in the second half of FY25. "We do not expect any meaningful increase in revenue run-rate from JLR in FY2026," the Kotak note said. In FY25, both Tata Elxsi and Tata Technologies recorded more than a fifth of their revenue from JLR. The UK-based company contributed Rs.856 crore to Tata Elxsi's revenue and Rs.1,425 crore to Tata Technologies' revenue in FY25. Tata Elxsi and Tata Technologies ended FY25 with Rs.3,729 crore and Rs.5,168.5 crore in revenue, respectively. As engineering, research and development (ER&D) companies, both Tata Elxsi and Tata Technologies offer product design ideas, digital and engineering services, and complete vehicle programme management. Tata Elxsi also houses JLR's R&D centre for its new vehicle programmes. In 2023, Tata Consultancy Services Ltd won an 800-million-pound order from JLR to revamp its IT systems. TCS got about Rs.3,722 crore (about $430 million) in business from JLR last fiscal, according to the company's annual report. Any slowdown in revenue from JLR could impact the company's growth, which is already challenged due to fewer mega deals last year. Emails sent to Tata Technologies and Tata Elxsi went unanswered, but they do not expect a dent in business from JLR. While Elxsi expects business worth Rs.1,200 crore from JLR, Tata Technologies expects Rs.1,425 crore in FY26, according to the two companies' annual reports....