Tata Elxsi delivers healthy growth in Q3 FY'26

Revenue from operations grows 3.9% QoQ, with EBITDA margin increasing by 220 bps

BENGALURU, India, Jan. 13, 2026 /PRNewswire/ -- Tata Elxsi (BSE: 500408) (NSE: TATAELXSI), amongst the world's leading providers of design led technology services, announced its third quarter results for the period ending 31^st December 2025.

For the third quarter of financial year 2025-26, the company reported operating revenue of Rs. 953.5 crores, up 3.9% QoQ.

Highlights of the Quarter Ended 31^st December 2025:

• Revenues from operations at Rs. 953.5 crores, up 3.9% QoQ
• EBITDA at Rs. 222.2 crores, EBITDA Margin at 23.3%
• Profit Before Tax (PBT) at Rs. 242.0 crores, up 12.7% QoQ*
• Profit After Tax (PAT) at Rs. 179.1 crores, up 15.7% QoQ*

*Excluding one-time exceptional item due to new labour code

Mr. Manoj Raghavan, CEO and Managing Director, Tata Elxsi, commenting on the company's performance in the third quarter of FY26, said:

"For the third quarter of FY'26, Tata Elxsi reported operating revenues of 953.5 Cr, a growth of 3.9% QoQ.

Growth was led by our transportation business, with accelerated ramp-ups in SDV led OEM deals won earlier in the year, and normalisation of workstreams and programs with a strategic OEM client that was impacted in the previous quarter. I am especially delighted with the new program we won with a strategic off-highway OEM from the US for the development of a complex operator information and control system, that underscores Tata Elxsi's design digital proposition for turnkey system and software development integrated with HMI and human-centric design.

Among regions, growth was led by Europe and US with broad-based growth across key accounts and verticals. While the Media and Communications, and the Healthcare and Life Sciences verticals were impacted by seasonal furloughs and some key deal awards that were delayed at the end of the quarter, I am confident of recovery and growth in both these verticals starting Q4 of the current financial year.

In the Healthcare business, our investment in Gen AI powered regulatory workflows is seeing market success, with a multi-million multi-year deal award to transform the regulatory workflow processes with a European MedTech leader that delivers significant improvement in cycle time and quality. We also won a large deal for a next-gen drug delivery system for critical illness treatment, reflecting Tata Elxsi's proven heritage of innovation and turnkey product engineering.

Tata Elxsi has been chosen as the strategic partner by a major European Telco to lead its 3-year network transformation journey towards an autonomous network. This platform-led deal with NEURON, Tata Elxsi's award-winning platform for orchestration and automation across 4G/5G networks, reinforces Tata Elxsi's next-gen transformation offerings for the telecom industry.

I am pleased with the operational excellence we demonstrated in improving margins, with EBIDTA growing to Rs. 222.2 crores, an increase of 220 bps QoQ. This was led by operational and delivery excellence, and improved utilisation.

We are continuing to invest ahead in applying Gen AI and AI thoughtfully to the innovation and product engineering context, specific to workflows in our chosen verticals and domains, and scaling adoption across the company. This is now strongly ingrained and reflected in the deal wins and value proposition we offer to customers across verticals.

I am pleased with our overall performance and resilience in revenues, margins, and customer additions through the quarter. We are entering the last quarter of the financial year with a commitment for growth, and the confidence in our design-led and AI-enabled engineering capabilities. This is backed by the strategic shift of our customer base in each of our verticals, new customer additions, large deal wins, investments in future-forward technology areas and Gen AI, and the strong deal pipeline we carry into the coming quarter and next financial year."

About Tata Elxsi

Tata Elxsi is amongst the world's leading providers of design and technology services across industries including Automotive, Broadcast, Communications, Healthcare and Transportation.

Tata Elxsi is helping customers reimagine their products and services through design thinking and application of digital technologies such as IoT (Internet of Things), Cloud, Mobility, Virtual Reality and Artificial Intelligence. For more information, please visit www.tataelxsi.com

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SOURCE Tata Elxsi