Financial Performance Overview

Tata Elxsi reported its second quarter results for the period ending September 30, 2026. The company achieved operating revenue of ₹1,055.7 crores, representing growth of 3.4% quarter-on-quarter (QoQ) and 15.0% year-on-year (YoY). In constant currency terms, revenue grew 2.3% QoQ.

Profitability Metrics

EBITDA for the quarter stood at ₹231.4 crores, showing growth of 7.1% QoQ. The EBITDA margin expanded to 21.9%, representing an improvement of 70 basis points QoQ despite the implementation of salary revisions across the entire employee base during the quarter.

Segment-wise Performance

Transportation Vertical:

  • Accounted for more than 55% of the SDS segment
  • Grew 2.0% QoQ in constant currency terms
  • Won a strategic multi-year deal from a leading automotive OEM for a next-generation cloud-based telematics and connected vehicle ecosystem
  • Showing continued traction in adjacencies, especially for the aerospace segment

Media and Communications Vertical:

  • Accounted for 33.6% of the SDS segment
  • Grew 3.4% QoQ in constant currency terms
  • Growth led by continued deal ramp-ups across leading customers and new deal wins
  • Won a strategic AI deal from a global technology leader for Gen AI based virtual assistant focused on multilingual intelligence and global-scale digital experiences

Healthcare & Life Sciences Vertical:

  • Grew 3.5% QoQ in constant currency terms
  • Won a comprehensive product engineering mandate from a global leader in renal care to redesign a next-generation home dialysis system
  • Scope includes full-stack product development and reengineering across UX, mechanical engineering, electronics, embedded systems, and regulatory compliance

Strategic Initiatives and Investments

The company is continuing to invest in applying Gen AI and AI to innovation and product engineering contexts across its verticals and domains. In September 2026, Tata Elxsi made a strategic early-stage investment in Silicon Valley-based KAVIA AI, expanding a partnership that first began in July 2025. This collaboration enables enterprises to manage, modernize, and transform complex software environments at scale across the AI-Driven Development Lifecycle (AIDLC).

Tata Elxsi also announced a strategic collaboration with Sarla Aviation to support the development of Shunya, India's first indigenous electric vertical take-off and landing (eVTOL) aircraft.

Management Commentary

Mr. Manoj Raghavan, CEO and Managing Director, stated that the growth was broad-based across all three key verticals. He highlighted the company's focus on operational efficiencies across the organization that resulted in improved EBITDA margins despite salary revisions. The management looks forward to sustaining growth in the second half of the financial year while continuing to invest in differentiated AI-first offerings and services and focusing on continued operational excellence.