Tata Elxsi Q2 Earnings: Revenue Hits ₹9.18 Billion, Net Profit Surges to ₹1.55 Billion

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Tata Elxsi reported strong Q2 FY26 financials with revenue from operations reaching ₹9.18 billion and net profit at ₹1.55 billion. The company’s operating performance reflects steady growth amid global macroeconomic challenges, driven by wins in transportation and healthcare technology sectors.

Tata Elxsi Ltd, a leading global design and technology services company, announced robust financial results for the second quarter ended September 30, 2025. The company’s revenue from operations stood at ₹9.18 billion (₹918.10 crore), marking a 2.9% sequential increase from ₹8.92 billion in Q1FY26. Net profit rose 7% quarter-on-quarter to ₹1.55 billion (₹154.81 crore), aligned with analysts’ expectations.

Earnings before interest and tax (EBIT) improved by 4.6% to ₹1.70 billion, with margins expanding slightly to 18.5% from 18.2% in the previous quarter. The steady margin recovery is attributed to higher revenue realization and operational efficiencies.

Tata Elxsi’s diversified portfolio spans automotive, healthcare, broadcast, and communication sectors, with a strong emphasis on innovation in embedded systems, AI, IoT, and cloud technologies. The transportation business, representing over half the revenues, showed signs of growth driven by strategic deal wins with marquee OEMs including Mercedes-Benz and Suzuki.

CEO and Managing Director Manoj Raghavan highlighted that despite macroeconomic uncertainties impacting R&D spends and decision timelines, Tata Elxsi is realizing positive impacts from large strategic deals and new customer acquisitions. The company remains confident about growth prospects in the upcoming quarters and continues to execute on its adjacency strategy.

Important Points:

Q2 revenue from operations rose 2.9% QoQ to ₹9.18 billion.

Net profit increased 7% QoQ to ₹1.55 billion.

EBIT up 4.6% QoQ to ₹1.70 billion; EBIT margin improved to 18.5%.

Transportation segment shows growth backed by large OEM deals.

Macro uncertainties persist, but strategic contracts and new logos drive optimism.

Focus areas include embedded systems, AI, IoT, and healthcare technology innovation.

Management optimistic on continued recovery and steady order pipeline.

Tata Elxsi’s Q2 results reflect resilience and strategic progress amid a complex business environment, underscoring its leadership in design-led technology services globally.

Sources: Tata Elxsi official disclosures, NDTV Profit, Moneycontrol, Business Standard