Tata Elxsi Q2 PAT Rises 7.2% from Q1

Design-led technology services company Tata Elxsi reported a profit after tax (PAT) of ₹154.8 crore and operating revenue of ₹918.1 crore in the second quarter of FY26, marking a 7.2% and 2.9% sequential increase respectively for the period ended September 30, 2025.

Profitability metrics also strengthened. Profit Before Tax (PBT) rose 9.4% quarter-on-quarter to ₹214.7 crore, while Profit After Tax (PAT) climbed 7.2% to ₹154.8 crore. EBITDA for the quarter stood at ₹193.3 crore, with margins at 21.1%.

US Market Leads Growth

Revenue from the United States grew 7.9% sequentially, supported by new deal wins in core and adjacent verticals. The company indicated that the momentum in the US market is expected to continue, underpinned by differentiated technology offerings and strong offshore execution.

Vertical Performance

The Media & Communication segment, which contributes over 31% of Tata Elxsi’s revenue, delivered a 6.8% QoQ increase. This growth was driven by deal ramp-ups and fresh engagements across multiple regions.

The Transportation vertical—accounting for more than half of the company’s revenue—posted a modest 0.7% QoQ rise. However, the segment continues to build on large deals and ongoing global Software-Defined Vehicle (SDV) programs.

During the quarter, Tata Elxsi established a dedicated Cloud Hardware-in-the-Loop (HIL) centre for Suzuki Motors in Thiruvananthapuram. This marks the second engineering facility under the Suzuki partnership, following the Pune Offshore Development Centre inaugurated last year.

Healthcare & Lifesciences Expansion

The company deepened its presence in the healthcare technology space by launching a Global Technology Centre for Medical Devices for Bayer. The radiology-focused centre will draw on Tata Elxsi’s specialised healthcare engineering capabilities. Leadership stated that a strong pipeline of customers and large deals is emerging across key global markets in this segment.

System Integration Business Accelerates

Tata Elxsi’s System Integration division, which offers experiential technology solutions and intelligent managed services across industries, recorded a striking 20.5% sequential growth. The Managed Services business also received international recognition, winning Dell Technologies’ global award for best ISG supplier of the year. The company highlighted rising enterprise demand for AI data centres, edge computing and hybrid workloads as growth catalysts.

Outlook and Strategy

CEO and Managing Director Manoj Raghavan said the company had delivered “strong operational excellence and resilient growth” despite market volatility. He emphasised that Tata Elxsi is entering the second half of FY26 with a strong pipeline and firm momentum.

The company plans to invest further in AI-first solutions, talent development and operational efficiency to drive sustainable growth and margin expansion in the coming quarters.

Founded as a design and technology services firm, Tata Elxsi continues to serve clients across automotive, broadcast, communications, healthcare, and transportation industries. Its offerings leverage digital technologies including IoT, cloud, AI, mobility and virtual reality.