#India #Bengaluru #Tata Elxsi #Design Technology #Q3 FY26

Tata Elxsi Reports Strong Growth in Q3 FY'26

Tata Elxsi, recognized as a leading provider of design-driven technology services, announced a solid financial performance for the third quarter ending December 31, 2025. The company reported an operating revenue of ₹953.5 crores, marking an impressive growth of 3.9% quarter-over-quarter (QoQ). The latest figures reflect not only an increase in revenue but also a significant enhancement in operational efficiency, with an EBITDA margin rising to 23.3%.

Key Financial Metrics

During this quarter, Tata Elxsi reported the following financial highlights:

• - Revenue from Operations: ₹953.5 crores, a 3.9% increase QoQ.
• - EBITDA: ₹222.2 crores, reflecting a solid margin improvement of 220 basis points.
• - Profit Before Tax (PBT): ₹242.0 crores, which is a staggering increase of 12.7% QoQ, demonstrating operational excellence.
• - Profit After Tax (PAT): ₹179.1 crores, a significant rise of 15.7% QoQ, underscoring the effectiveness of their strategic initiatives.

Mr. Manoj Raghavan, CEO and Managing Director of Tata Elxsi, attributed these positive results to robust growth in the transportation business and the effective ramp-up of software-defined vehicle (SDV) projects, which have been critical in capturing new client contracts. He expressed delight at the acquisition of a program with a US-based off-highway OEM focused on developing sophisticated operator information systems—an achievement that showcases the company’s design and engineering capabilities.

Regional Performance

The performance was particularly strong in Europe and the United States, with broad-based growth across various verticals and key accounts. Although the media, communications, healthcare, and life sciences sectors faced some challenges due to seasonal furloughs and a few delayed deal awards, the company anticipates recovery and growth resuming in the fourth quarter.

In the healthcare domain, Tata Elxsi has made significant strides by investing in Generative AI (Gen AI)-powered regulatory workflows. One notable success was winning a multi-million, multi-year contract with a European MedTech leader to overhaul regulatory workflow processes, thereby enhancing efficiency and quality. Furthermore, a new contract for next-gen drug delivery systems for critical illnesses reflects Tata Elxsi’s innovative strengths in product engineering.

Strategic Partnerships

Tata Elxsi was recently appointed as the strategic partner to a major European telecommunications company. This collaboration aims to lead a three-year network transformation initiative focusing on developing an autonomous network. The partnership revolves around Tata Elxsi's NEURON platform, winner of multiple awards for its orchestration and automation capabilities across 4G and 5G networks, further solidifying the company’s offerings in the telecommunications sector.

Fostering Future Growth

Mr. Raghavan emphasized the company's commitment to integrating Gen AI thoughtfully into innovation processes and product engineering. The initiative reflects an ingrained approach across all vertical domains, enhancing Tata Elxsi’s value proposition to customers. The combination of customer diversification, new account acquisitions, and a robust deal pipeline positions the firm well for sustainable growth moving into the next financial year.

In conclusion, Tata Elxsi’s performance in Q3 FY'26 not only highlights its resilience but also reinforces its strategic direction in design and AI-enabled engineering solutions. As the company prepares to enter the final quarter of the fiscal year with renewed confidence and commitment to growth, stakeholders remain optimistic about its future trajectory.

For more information on Tata Elxsi and its services, visit Tata Elxsi's Official Website.