Broad-based performance across key verticals drives a 15 per cent year-on-year revenue surge.
Design-led technology services provider Tata Elxsi has reported an operating revenue of $126m (Rs 1,055.7 crore) for the second quarter ending 30 September 2026, marking a 3.4 per cent quarter-on-quarter increase and a 15.0 per cent year-on-year expansion. Constant currency revenue grew by 2.3 per cent quarter-on-quarter, supported by balanced performance across all primary business segments. EBITDA for the period rose 7.1 per cent quarter-on-quarter to $27.7m (Rs 231.4 crore), expanding margins by 70 basis points to 21.9 per cent despite company-wide salary revisions.
The growth was driven by solid performance across all three of the firm’s main industry divisions. In the Transportation segment, which accounts for over 55 per cent of software development services, constant currency revenue rose 2.0 per cent quarter-on-quarter, bolstered by a multi-year deal with a major automotive original equipment manufacturer for a cloud-based telematics ecosystem and a strategic collaboration with Sarla Aviation to develop “Shunya”, India’s first electric vertical take-off and landing aircraft. Media and Communications posted a 3.4 per cent quarter-on-quarter constant currency revenue increase following new project roll-outs, including a generative AI contract to build a multilingual virtual assistant for a global technology leader. Meanwhile, Healthcare and Life Sciences revenue grew 3.5 per cent in constant currency terms, anchored by a comprehensive mandate from a global renal care leader to redesign a next-generation home dialysis system covering user experience, mechanical, electronic, and regulatory development.
To further strengthen its capabilities in artificial intelligence, Tata Elxsi made an early-stage investment in Silicon Valley-based KAVIA AI in September, expanding an initial partnership established in July 2025. The collaboration aims to help enterprise clients modernise and manage complex software environments across the full software engineering lifecycle. Chief Executive and Managing Director Manoj Raghavan noted that operational efficiency measures enabled margin expansion during the quarter, adding that the company remains focused on delivering AI-driven solutions and operational excellence to sustain growth momentum into the second half of the financial year.
