Tata Elxsi LimitedQuarter ended September 30, 2026 Results & Financial Update
Tata Elxsi Limited: Quarter ended September 30, 2026 standalone results and company financials – revenue ₹1,055.66 Cr, PAT ₹170.30 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceReported figures and period changes.Changes compare like-for-like reported periods where available.
Find an answer
Ask this result
Chart · Market context
Tata Elxsi price & chart
Market price₹3,643.00
1Y return—Price return
Loading market chart…
TradingView Lightweight Charts™ · Copyright © 2025 TradingView, Inc.TradingView
Market chartPrice chart temporarily unavailableThe price chart could not be loaded right now. The reported financial results remain available above.
Spotted a factual error?Tell us the number, date or statement and we will re-check the underlying records and calculations.Report an error
Quarterly Results AnalysisExplore Tata Elxsi Quarter ended September 30, 2026 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Tata Elxsi reported operating revenue of Rs. 1,055.7 crore for the quarter ended September 30, 2026, marking a 3.4% sequence growth and a 15.0% expansion over the corresponding period of the previous year. In constant currency terms, operating revenue grew by 2.3% sequentially and 7.8% year-on-year.
Growth during the quarter was broad-based across all three key verticals, driven by steady deal ramp-ups with leading enterprise customers and new client acquisitions in specialized technology domains.
Operating efficiency initiatives helped expand EBITDA margins by 70 basis points sequentially to 21.9%, even as the company absorbed company-wide salary revisions implemented across its entire employee base during the quarter. Absolute EBITDA grew by 7.1% QoQ and 19.7% YoY to reach Rs. 231.4 crore.
Other income contracted during the period, standing at Rs. 34.9 crore compared to Rs. 41.5 crore in Q1 FY27 and Rs. 48.9 crore in Q2 FY26, which influenced total income growth to a modest 2.6% QoQ rate while year-on-year growth remained robust at 12.8%. Total income for the quarter reached Rs. 1,090.6 crore.
Basic and diluted earnings per share came in at Rs. 27.34 for the quarter, compared to Rs. 27.38 in the preceding quarter and Rs. 24.85 in the year-ago period. Total employee headcount rationalized slightly to 11,149 at the end of September 2026, while monthly attrition stood at 15.9%.
01 · Business model
What does Tata Elxsi do?
Tata Elxsi Limited is among the world's leading providers of design-led technology services, catering to industries including transportation, media, communications, healthcare, and medical devices. Founded in 1989 and headquartered in Bengaluru, India, the company combines domain expertise with over three decades of experience in product engineering.
The company's primary revenue engine is its Software Development and Services (SDS) segment, which delivers specialized engineering, embedded software, and digital solutions. Tata Elxsi also maintains a smaller System Integration and Support business alongside emerging technology practices centered on IoT, cloud, mobility, virtual reality, and artificial intelligence.
Tata Elxsi serves a global client base distributed across Europe, the Americas, India, and the Rest of the World. Its operating model integrates offshore delivery centers with onshore design studios and client-facing teams, allowing it to execute complex product engineering mandates from concept through deployment and regulatory compliance.
02 · Historical context
What shaped the business before this quarter
Tata Elxsi previously strengthened its connected entertainment engineering capabilities by inaugurating an RDK Entertainment Lab at its Thiruvananthapuram delivery center in collaboration with Comcast for end-to-end device validation.
The company previously aligned with global automotive open innovation efforts by joining Startup Autobahn India as a foundation member alongside Mercedes-Benz Research and Development India.
Tata Elxsi expanded its relationship with Silicon Valley-based KAVIA AI, building upon an initial collaboration that first commenced in July 2025 before culminating in a strategic early-stage investment.
03 · Financial snapshot
Current quarter vs the two useful baselines
| Metric | Quarter ended September 30, 2026 | Year-ago | Previous quarter |
|---|---|---|---|
| Revenue from operations | ₹1,055.66 Cr | ₹918.10 Cr | ₹1,021.11 Cr |
| Total income | ₹1,090.57 Cr | ₹966.98 Cr | ₹1,062.57 Cr |
| Profit before tax | ₹239.10 Cr | ₹214.72 Cr | ₹232.46 Cr |
| Profit after tax | ₹170.30 Cr | ₹154.82 Cr | ₹170.60 Cr |
| EPS | ₹27.34 | ₹24.85 | ₹27.38 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
The transportation vertical, accounting for more than 55% of the Software Development and Services segment, grew by 2.0% QoQ in constant currency terms, supported by core OEM business expansion and new deal wins in aerospace and defence.
The media and communications vertical, representing 33.6% of the SDS segment, registered a 3.4% QoQ constant currency growth rate, propelled by ongoing deal ramp-ups with key enterprise accounts and newly secured generative AI engagements.
The healthcare and life sciences vertical recorded a 3.5% QoQ constant currency growth rate, aided by major deal wins in turnkey product engineering, renal care systems, and digital health platforms.
What drove margins
EBITDA margins expanded by 70 basis points sequentially from 21.2% in Q1 FY27 to 21.9% in Q2 FY27, driven by organizational cost efficiencies and productivity gains that absorbed annual employee salary revisions.
The company executed company-wide salary increments across its entire employee base during the second quarter, representing a notable operational cost item managed through operating leverage.
Non-operating performance was constrained by a reduction in other income, which declined by 15.8% sequentially to Rs. 34.9 crore and by 28.6% year-on-year.
05 · Demand, customers & order book
Where demand is coming from
Revenue contribution from the top 5 clients stood at 48.9% of the total, while the top 10 clients accounted for 59.2% of revenue during the quarter.
Major customer wins in Q2 FY27 include a multi-year cloud-based telematics contract from a leading Asian automotive OEM, a commercial aircraft test rig development mandate from a global aerospace supplier, a generative AI virtual assistant engagement from a US technology leader, and a renal care product re-engineering contract from a global medtech leader.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
SDS remains the core operational segment, representing 97.0% of total revenue and growing at 2.4% in constant currency QoQ and 7.8% YoY.
System integration and support accounted for 3.0% of revenue, registering a minor contraction of 0.8% in constant currency QoQ while growing 6.9% YoY.
Geography and market mix
Europe remained the largest geographic market at 40.7% of revenue, followed by the Americas at 33.2%, India at 16.6%, and the Rest of the World (RoW) at 9.5%.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Operations are supported by a global network of design studios, delivery centers, and engineering facilities, including the Thiruvananthapuram delivery center which houses specialized testing laboratories.
Projects, capex and execution
The company invested in specialized testing infrastructure, such as the RDK Entertainment Lab in Thiruvananthapuram, to enhance offshore engineering capabilities and automated validation efficiency.
08 · Strategy & new businesses
How the company is trying to change its growth mix
Tata Elxsi made a strategic early-stage investment in Silicon Valley-based KAVIA AI to integrate domain-led engineering with knowledge graph and workflow intelligence platforms for enterprise software modernization.
Entered a strategic collaboration with Sarla Aviation to support the development and certification of Shunya, India's first indigenous electric vertical take-off and landing (eVTOL) aircraft.
Joined Startup Autobahn India as a foundation member and launched TELIPORT Season 4 to foster AI-first student innovation across engineering domains.
09 · Reported developments
What changed operationally
All three core verticals—transportation, media, and healthcare—recorded positive constant currency growth sequences during the quarter.
EBITDA margin expanded by 70 basis points sequentially despite universal wage hikes implemented across the entire employee base.
10 · Pressure points & risks
What is not going smoothly
Total employee headcount decreased from 11,336 at the end of Q1 FY27 to 11,149 at the end of Q2 FY27, reflecting ongoing resource optimization.
Non-operating income saw a double-digit decline both sequentially (-15.8%) and year-on-year (-28.6%), limiting total income growth relative to operating revenue growth.
11 · Management guidance & targets
What management is targeting from here
Management stated an expectation of sustaining growth momentum through the second half of the financial year, backed by ongoing investments in differentiated AI-first offerings and operational excellence.
12 · Beyond the numbers
What changed beyond the numbers
Reported update
Launch of TELIPORT Season 4
Tata Elxsi kicked off the fourth season of its national innovation challenge, 'TELIPORT', aimed at engineering students under the theme 'Script Your Future' to source AI-first solutions across energy, transportation, healthcare, and media.
Reported update
Participation in Global Industry Summits
Management showcased AI-powered experience assurance and secure RDK engineering capabilities at the RDK Global Summit 2026 in Amsterdam, alongside participation in the Medical Device Regulatory and Quality Summit in New Delhi.
13 · Previous-quarter changes
What changed since the previous quarter
Employee headcount reduced by 187 personnel sequentially from 11,336 in Q1 FY27 to 11,149 in Q2 FY27, accompanied by a slight decrease in attrition from 16.0% to 15.9%.
14 · Key Q&A
The quarter, answered directly
What does Tata Elxsi do?
Tata Elxsi Limited is among the world's leading providers of design-led technology services, catering to industries including transportation, media, communications, healthcare, and medical devices. Founded in 1989 and headquartered in Bengaluru, India, the company combines domain expertise with over three decades of experience in product engineering.
What is the clearest takeaway from Quarter ended September 30, 2026?
Tata Elxsi reported operating revenue of Rs. 1,055.7 crore for the quarter ended September 30, 2026, marking a 3.4% sequence growth and a 15.0% expansion over the corresponding period of the previous year. In constant currency terms, operating revenue grew by 2.3% sequentially and 7.8% year-on-year.
What drove revenue or demand?
The transportation vertical, accounting for more than 55% of the Software Development and Services segment, grew by 2.0% QoQ in constant currency terms, supported by core OEM business expansion and new deal wins in aerospace and defence.
What mattered most for margins or profitability?
EBITDA margins expanded by 70 basis points sequentially from 21.2% in Q1 FY27 to 21.9% in Q2 FY27, driven by organizational cost efficiencies and productivity gains that absorbed annual employee salary revisions.
What changed operationally beyond the headline numbers?
Operations are supported by a global network of design studios, delivery centers, and engineering facilities, including the Thiruvananthapuram delivery center which houses specialized testing laboratories.
What is management guiding or targeting from here?
Management stated an expectation of sustaining growth momentum through the second half of the financial year, backed by ongoing investments in differentiated AI-first offerings and operational excellence.
15 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
Starting point
Build your own next-quarter scenario
Reported values are prefilled where a comparable basis is available. Otherwise, the field starts at 0. You can overwrite every field.
Example: enter 10 for 10% revenue growth. Enter -100 for a 1 percentage-point margin decline.
Scenario output
Scenario revenue / income₹0 cr
Scenario profit after tax₹0 cr
Profit change vs base₹0 cr (0%)
Scenario margin0%
Growth needed to keep profit flat after this margin move0%
The calculator holds the selected margin basis constant except for the basis-point adjustment you enter. It does not estimate tax, finance cost, dilution, working capital, valuation or share price.
16 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Second Half Growth Execution: Monitor the company's ability to sustain revenue growth across transportation and media verticals through the second half of FY27 amid macroeconomic volatility.
- 02
AI Platform Integration and Monetization: Track the commercial deployment and revenue scaling of enterprise AI initiatives, including the KAVIA AI partnership and newly won generative AI contracts.
- 03
Margin Trajectory Post-Wage Revision: Observe whether operating efficiencies can sustain EBITDA margins above the 21% threshold following the company-wide salary revisions enacted in Q2.
Learn the metrics
Need the concepts first?
Use Nivata’s plain-English guides to understand the accounting terms used in this brief before interpreting them.