Bengaluru, India, October 13, 2026 / PRNewswire / — Tata Elxsi ( BSE : 500408 ) ( NSE : TATAELXSI ) announced its financial results for the second quarter ending September 30, 2026. The company is one of the world's leading design-driven technology service providers.
In the second quarter of the 2026-27 fiscal year, the company achieved operating revenue of 1.0557 billion rupees, a quarter-on-quarter increase of 3.4% and a year-on-year increase of 15.0%.
Key points for the quarter ending September 30, 2026:
- Operating revenue amounted to 1.0557 billion rupees; there was a month-on-month increase of 2.3% when calculated using a fixed exchange rate.
- EBITDA amounted to 231.4 million rupees, representing a month-on-month increase of 7.1%; EBITDA has a profit margin of 21.9%.
- Transportation business saw a month-on-month growth of 2.0% calculated at a fixed exchange rate.
- Media and communications services saw a month-on-month growth of 3.4% calculated at a fixed exchange rate.
- The healthcare and life sciences business saw a month-on-month growth of 3.5% calculated at a fixed exchange rate.
Tata Elxsi Chief Executive Officer and Managing Director Manoj Raghavan stated:
In the second quarter of 2027, Tata Elxsi achieved operating revenue of 1.0557 billion rupees, representing a quarter-on-quarter increase of 3.4% in rupee terms and 2.3% in fixed exchange rate terms. This growth was observed across all three key vertical sectors.
Transportation business accounts for over 55% of the revenue of our SDS department, with a month-on-month growth of 2.0% when calculated at a fixed exchange rate. In terms of new contracts, we have secured a strategic multi-year agreement with a leading automotive OEM to provide services for the next generation of cloud-based telematics and connected vehicle ecosystems.
We continue to see growth momentum in related sectors, especially in the aerospace sector. I am pleased with our strategic cooperation with Sarla Aviation, which will support the development of India's first domestically produced electric vertical takeoff and landing (eVTOL) aircraft, Shunya.
Our media and communications business accounted for 33.6% of the revenue of the SDS department and continued to achieve a quarter-on-quarter growth of 3.4% at a fixed exchange rate. The growth mainly came from the continued expansion of existing key customer projects as well as new project signings. This quarter, we won a strategic AI project from a global technology leader, which will support virtual assistants based on generative AI, with a focus on multi-language intelligence and digital experiences on a global scale. This further strengthens Tata Elxsi's capabilities within the rapidly expanding GenAI ecosystem.
This quarter, our healthcare business also achieved a healthy growth of 3.5% when calculated at a fixed exchange rate. Tata Elxsi has received a comprehensive product engineering assignment from a global leader in kidney care to redesign the next generation of home dialysis systems. The scope of this project includes complete product development and reengineering, covering user experience, mechanical engineering, electronics, embedded systems, as well as regulatory compliance.
We have promoted operational efficiency improvements across the entire company, which has led to an improvement in the EBITDA profit margin. Despite salary adjustments being implemented for all employees this quarter, the EBITDA still increased by 70 basis points compared to the previous quarter.
We will continue to make early investments and prudently apply generative technologies AI and AI to innovation and product engineering scenarios in the selected vertical fields and business directions. This is evident in the new projects we have won in various vertical sectors. In September, we also made a strategic early investment in KAVIA AI located in Silicon Valley, further expanding our collaboration that began in July 2025. Although most AI tools focus on accelerating coding, this partnership enables companies to manage, modernize, and transform complex software environments on a large scale across the entire development lifecycle ( AIDLC ) through a single platform. It integrates continuous knowledge, governed engineering artifacts, collaboration, traceability, and deployment capabilities, all supported by Tata Elxsi's extensive domain and process expertise.
In a volatile macroeconomic environment, we have achieved strong operational performance and resilient growth in our customer and industry-specific verticals. As we continue to invest in differentiated AI priority products and services and maintain a focus on operational excellence, we look forward to continuing this growth in the second half of the fiscal year.
About Tata Elxsi
Tata Elxsi is one of the world's leading design and technology service providers, serving industries including automotive, broadcasting, communications, healthcare, and transportation.
Tata Elxsi helps clients reinvent their products and services through design thinking, as well as digital technologies such as the Internet of Things (IoT), cloud, mobility, virtual reality, and artificial intelligence. For more information, please visit www.tataelxsi.com.
