Challenging markets, smart recoveries, and big wins; Tata Elxsi kicks off FY26 with resilient growth and a promising outlook across its segments.
Tata Elxsi, a provider in design-led technology services, reported its financial results for the first quarter of FY 2025-26, ending 30 June 2025. The company posted operating revenue of ₹8.92 billion, with an EBITDA of ₹1.86 billion, reflecting a margin of 20.9%.
The company’s profit before tax stood at ₹1.96 billion (21.1% margin), while profit after tax was ₹1.44 billion, marking a 15.5% PAT margin.
CEO and Managing Director Manoj Raghavan acknowledged a challenging quarter due to macroeconomic headwinds and cautious R&D spending across geographies. Despite this, the company maintained stability, especially in its core transportation business.
The transportation vertical, contributing over half of Tata Elxsi’s revenue, grew 3.7% quarter-on-quarter (QoQ) in actual currency. Growth was driven by the ongoing execution of large strategic deals, including software-defined vehicle (SDV) projects with Mercedes-Benz, a European OEM, and Suzuki.
In contrast, the Media and Communication business declined 5.5% QoQ in constant currency, impacted by transition costs tied to recent large deal wins. However, the company expects growth to resume from Q2, supported by deal ramp-ups and a robust pipeline.
The Healthcare and Lifesciences segment saw a 6.7% QoQ dip, affected by tariffs in the US. Still, the quarter included wins with major global pharma and Medtech players, which are expected to boost performance in the second half of FY26.
Looking ahead, the company anticipates improved margins and bottom-line growth as transportation and media businesses recover and utilisation improves.
