Tata Elxsi reported a 3.2% increase in revenue on a constant currency basis for the quarter ended December 31, 2025. The company’s EBITDA margin rose to 23.3%, and PBT improved to 24.2%. Transportation sector grew by 7.7%, while Media and Communications saw a slight dip. The company anticipates growth in healthcare and media sectors in the coming quarters.
Financial Performance Overview
Tata Elxsi announced a 3.2% quarter-on-quarter revenue growth on a constant currency basis. The growth was volume-led, resulting in improved utilization and operating margins. The company’s EBITDA margin increased by 220 basis points to 23.3%, and PBT improved by 200 basis points to 24.2%. These figures exclude a one-time item related to a new labor code.
Segmental Highlights
The Transportation business grew by 7.7% quarter-on-quarter, now accounting for over 55% of the company’s revenue. Growth was primarily driven by accelerated ramp-ups in software-defined vehicle (SDV) related OEM deals. The Media and Communication business experienced a marginal decline of 0.3% quarter-on-quarter due to seasonal factors and deal delays, but a strong foundation has been laid with large deals secured throughout the year.
The Healthcare and Life Sciences business appears to have bottomed out in the current quarter, following the completion of some large regulatory programs. The investments in AI-powered regulatory workflows are showing market success with new multiyear deals. Growth in this sector is expected to return starting in Q4 FY ’26.
Geographical Performance
The company performed strongly in the U.S. and Europe, experiencing broad-based growth across key accounts and verticals. However, India saw some impact due to the business from automotive suppliers.
Future Outlook and Strategy
Tata Elxsi is committed to future growth, with confidence in its design-led and AI-enabled engineering capabilities. The company expects steady growth moving forward in automotive sector and accelerated momentum in the next financial year.
Source: BSE
