Tata Elxsi reported a stable performance for the quarter ended December 31, 2025, posting both revenue growth and margin improvement. Revenue from operations rose 3.9% on a sequential basis to ₹953.5 crore, supported by continued demand in key business segments.
Profitability strengthens with margin expansion
EBITDA for the quarter stood at ₹222.2 crore, with the EBITDA margin improving significantly to 23.3%, an expansion of 220 basis points quarter-on-quarter. Profit before tax increased 12.7% QoQ to ₹242.0 crore, while profit after tax rose 15.7% QoQ to ₹179.1 crore, after excluding the impact of a one-time labour code–related adjustment.
Transportation segment drives performance
The transportation business remained the standout contributor to growth. Faster scaling of software-defined vehicle (SDV) programs and the normalisation of operations with a major global OEM supported performance. Tata Elxsi also secured a new contract from a US-based off-highway OEM to design an advanced operator information and control system, underscoring its expertise in design-led engineering solutions.
Regional and vertical performance trends
Growth was led by Europe and the United States, with broad-based traction across client accounts. Media & Communications and Healthcare & Life Sciences experienced temporary softness due to seasonal furloughs and slower deal closures, but the company expects activity to pick up from Q4 FY26.
Strategic wins in healthcare and telecom
In the healthcare segment, Tata Elxsi won a multi-year, multi-million-euro engagement with a European MedTech firm to modernise regulatory processes using generative AI. It also bagged a large program for a next-generation drug delivery platform.
In telecom, the company was chosen by a leading European operator as a strategic partner for a three-year network transformation initiative, deploying its NEURON platform for 4G and 5G network automation.
Focus on efficiency and AI-led growth
Margin improvement during the quarter was supported by higher utilisation levels and disciplined delivery execution. The company continues to step up investments in generative AI and AI-enabled engineering, positioning these capabilities as key drivers of its long-term growth strategy.
Summary
Tata Elxsi posted Q3 FY26 revenue of ₹953.5 crore, up 3.9% QoQ, with EBITDA margin improving by 220 bps to 23.3%. Profits also rose, with PAT increasing 15.7% QoQ (excluding one-time items). Growth was led by the transportation segment and strong execution in SDV programs, while Europe and the US were the best-performing regions. The company won notable deals in healthcare, MedTech, and telecom, and continues to invest in generative AI and AI-driven engineering to support future growth.
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