Tata Elxsi delivers healthy growth in Q3 FY’26

New Delhi: Tata Elxsi, one of the world’s leading providers of design-led technology services, announced its third-quarter results for the period ended December 31, 2025.

For the third quarter of FY 2025–26, the company reported operating revenues of Rs. 953.5 crores, marking a quarter-on-quarter growth of 3.9 percent. EBITDA for the quarter stood at Rs. 222.2 crores, translating into an EBITDA margin of 23.3 percent. Profit before tax rose to Rs. 242.0 crores, registering a 12.7 percent QoQ increase, while profit after tax increased by 15.7 percent QoQ to Rs. 179.1 crores, excluding a one-time exceptional item related to the new labour code.

Commenting on the company’s performance, Mr. Manoj Raghavan, CEO and Managing Director of Tata Elxsi, said that the company delivered operating revenues of Rs. 953.5 crores in the third quarter of FY26, driven primarily by strong growth in the transportation business. He noted accelerated ramp-ups in software-defined vehicle (SDV)-led OEM deals secured earlier in the year, along with the normalisation of workstreams and programmes with a strategic OEM client that had been impacted in the previous quarter. He also highlighted a new programme win with a strategic off-highway OEM in the US for the development of a complex operator information and control system, which underscores Tata Elxsi’s design digital proposition and its capabilities in turnkey system and software development integrated with HMI and human-centric design.

From a regional perspective, growth was led by Europe and the US, with broad-based momentum across key accounts and verticals. Mr. Raghavan acknowledged that the Media and Communications, as well as Healthcare and Life Sciences verticals, were impacted by seasonal furloughs and delays in certain deal awards towards the end of the quarter. However, he expressed confidence that both verticals would return to growth starting from the fourth quarter of the current financial year.

In the healthcare business, he pointed to the company’s investments in Gen AI-powered regulatory workflows, which are gaining market traction. This included a multi-million-dollar, multi-year deal with a leading European MedTech company to transform regulatory workflow processes, delivering significant improvements in cycle time and quality. Tata Elxsi also secured a large deal for a next-generation drug delivery system for critical illness treatment, reflecting its strong legacy in innovation and turnkey product engineering.

In the telecom space, Tata Elxsi was selected as the strategic partner by a major European telecom operator to lead a three-year network transformation programme towards an autonomous network. The platform-led engagement, powered by NEURON—Tata Elxsi’s award-winning orchestration and automation platform for 4G and 5G networks—reinforces the company’s next-generation transformation offerings for the telecom industry.

Mr. Raghavan also expressed satisfaction with the company’s operational performance, highlighting the improvement in margins during the quarter. EBITDA increased to Rs. 222.2 crores, reflecting a 220 basis point QoQ expansion, driven by operational and delivery excellence as well as improved utilisation.

He added that Tata Elxsi continues to invest proactively in the thoughtful application of Gen AI and AI within innovation and product engineering workflows across its chosen verticals and domains. This approach, he said, is now deeply embedded within the organisation and is clearly reflected in recent deal wins and the value proposition offered to customers.

Concluding his remarks, Mr. Raghavan said he was pleased with the company’s resilience in revenues, margins, and customer additions during the quarter. As Tata Elxsi enters the final quarter of the financial year, it does so with confidence in its design-led and AI-enabled engineering capabilities, supported by a strategic shift in its customer base across verticals, new customer additions, large deal wins, sustained investments in future-ready technologies and Gen AI, and a strong deal pipeline extending into the next financial year.