Tata Elxsi announced a 3.9% QoQ increase in operating revenue, reaching ₹953.5 crores in Q3 FY26. EBITDA margin improved by 220 bps. Transportation business led growth, fueled by SDV deals. A multi-million dollar deal in healthcare for AI-powered regulatory workflows was also secured. The company is confident about continued growth and recovery in all key verticals.
Financial Performance Highlights
Tata Elxsi reported operating revenue of ₹953.5 crores for Q3 FY26, reflecting a growth of 3.9% QoQ. The company’s EBITDA stood at ₹222.2 crores, with an EBITDA margin of 23.3%. Profit Before Tax (PBT) increased by 12.7% QoQ* to ₹242.0 crores, and Profit After Tax (PAT) rose by 15.7% QoQ* to ₹179.1 crores. (*Excluding one-time exceptional item due to new labour code)
Growth Drivers and Key Wins
The transportation business was a key driver of growth, boosted by SDV (Software Defined Vehicle) related OEM deals. Tata Elxsi secured a new program with a strategic off-highway OEM from the US, focusing on developing a complex operator information and control system.
Healthcare Innovation
In the healthcare sector, Tata Elxsi’s investment in Gen AI powered regulatory workflows resulted in a multi-million, multi-year deal to transform regulatory workflow processes with a European MedTech leader. The company also secured a significant deal for a next-gen drug delivery system for critical illness treatment.
Strategic Partnerships
Tata Elxsi has been selected as the strategic partner by a major European Telco to spearhead its 3-year network transformation journey toward an autonomous network, leveraging its NEURON platform.
Operational Excellence and Outlook
The company demonstrated operational excellence, leading to improved margins, with EBIDTA increasing by 220 bps QoQ. Tata Elxsi is optimistic about future growth, driven by design-led and AI-enabled engineering capabilities, strategic customer shifts, and investments in future-forward technologies.
Source: BSE
