Tata Elxsi reported steady growth in Q3 FY’26 with a 3.9 percent quarter-on-quarter rise in operating revenue to Rs. 953.5 crores. Margin expansion, strong deal wins across transportation, healthcare, and telecom, and disciplined execution helped drive profitability and reinforce confidence going into the final quarter of the financial year.
Tata Elxsi announced its financial results for the third quarter ended December 31, 2025, highlighting resilient growth, improved margins, and sustained momentum across key verticals despite seasonal headwinds in select segments.
The company recorded operating revenue of Rs. 953.5 crores, marking a 3.9 percent QoQ increase, while EBITDA rose to Rs. 222.2 crores with margins expanding by 220 basis points to 23.3 percent. Profitability also strengthened, with profit before tax growing 12.7 percent QoQ and profit after tax increasing 15.7 percent QoQ, excluding onetime impacts from the new labour code.
Quarter Highlights
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Operating revenue growth driven primarily by the transportation business, supported by SDVled OEM deal rampups
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Margin expansion achieved through operational efficiency, delivery excellence, and improved utilisation
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Strong deal momentum in healthcare, including Gen AIpowered regulatory workflows and nextgeneration drug delivery systems
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Strategic telecom win with a major European operator for a threeyear autonomous network transformation using the NEURON platform
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Geographic growth led by Europe and the United States, with broadbased expansion across key accounts
Management Perspective
The leadership expressed confidence in recovery for media, communications, and healthcare verticals from Q4 onward, backed by a robust deal pipeline, continued investments in Gen AI, and a strong focus on designled, AIenabled engineering capabilities.
Sources: Tata Elxsi official press release, BSE and NSE corporate disclosures