Tata Elxsi has entered into a strategic partnership with JSW Motors to establish the JNEXT – JSW NextGen Technology Center in Pune, focusing on the development of next-generation connected and software-defined mobility solutions. The partnership was formalized through a Memorandum of Understanding (MoU) signed on April 24, 2026, with Tata Elxsi making the disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Strategic Partnership Details

The collaboration establishes a strategic engineering hub to support the development of next-generation software-defined, AI-powered mobility solutions, aligned with the industry's shift towards connected and electrified vehicles. The JNEXT Center will enable close collaboration with JSW Motors' R&D, manufacturing, and leadership teams.

Technology and Service Scope

Tata Elxsi will lead the implementation of the Connected Vehicle Platform and unified customer experience app for JSW Motors' upcoming vehicle programs, owning the platform end-to-end from conceptualization and integration to production and aftersales support. The collaboration will bring capabilities across:

• Digital and data-driven solutions including user experience design
• Cloud platforms and over-the-air (OTA) frameworks
• Digital twins and AI/ML analytics
• 5G-enabled technology and cybersecurity
• Immersive technologies like AR/VR/XR for enhanced customer experience
• Software-defined vehicle architectures and intelligent platforms for diagnostics
• Performance optimization and predictive maintenance
• Testing, validation, functional safety frameworks aligned with global automotive standards

Leadership Perspectives

Ranjan Nayak, CEO of JSW Motors, emphasized the partnership's role in building a technology-led, new-energy mobility ecosystem deeply rooted in India and globally competitive. He highlighted Tata Elxsi's proven expertise across software-defined vehicles, ADAS, electrification, and digital engineering as key factors in accelerating development timelines.

Manoj Raghavan, MD & CEO of Tata Elxsi, noted that the future of mobility will be increasingly connected and software-defined, where vehicles continuously evolve through software, data, and intelligent systems. The JNEXT Center will be instrumental in translating this vision into real-world mobility solutions across vehicle programs.

Strategic Significance

This partnership positions both companies to capitalize on the growing demand for connected and software-defined vehicles in the automotive industry. The collaboration leverages Tata Elxsi's technological expertise in design and engineering services alongside JSW Motors' focus on new-energy passenger vehicles. Tata Elxsi will utilize its proprietary platforms such as TETHER Auto to deliver scalable, cloud-native platforms aligned with global automotive standards. The engagement supports JSW Motors' vision of building a technology-led ecosystem with focus on indigenization and localization across the vehicle value chain.

Tata Elxsi announced its Q4 FY26 financial results, reporting revenue of ₹993.8 crores with a quarter-on-quarter growth of 0.9% in constant currency terms. The company demonstrated strong operational performance with EBITDA margin expanding by 130 basis points to 24.6%, reflecting continued focus on operational excellence and margin improvement initiatives.

Financial Performance Overview

The company's financial metrics for Q4 FY26 showed mixed performance across business verticals:

Transportation Business Shows Resilience

The transportation vertical delivered modest growth of 0.2% quarter-on-quarter in constant currency terms, supported by strategic deal wins. The company secured two significant contracts during the quarter - one from a new-age OEM in the APAC region and another from a next-generation mobility services company in the US. These wins demonstrate the success of Tata Elxsi's strategic pivot towards OEM business, with OEM customers now representing 77% of the transportation vertical's revenue.

Management highlighted that the shift to OEM-focused business continues to strengthen their market position, with these new deals expected to contribute to growth in coming quarters through planned ramp-ups over the next 6-12 months.

Healthcare Vertical Faces Temporary Setback

The Healthcare and Life Sciences vertical experienced a decline of 13.1% quarter-on-quarter in constant currency terms, primarily due to delays in expected deal closures. Management indicated that several large deals they were confident of closing during Q4 were pushed to Q1 FY27, creating a temporary revenue impact.

Despite the quarterly decline, the company achieved a significant milestone by opening an offshore development center for Japanese MedTech leader Terumo Corporation. This center integrates design, engineering, and digital capabilities to innovate cardiac and vascular solutions, representing a strategic partnership expansion.

Media and Communication Delivers Strong Growth

The Media and Communication business posted robust growth of 5.6% quarter-on-quarter in constant currency terms, driven by continued deal ramp-ups and strategic contract wins. Key growth drivers included:

Margin Expansion Strategy

CFO Gaurav Bajaj provided detailed insights into the 130 basis points margin improvement, attributing the gains to multiple factors:

The company targets reaching 27% PBT margin by Q4 FY27 exit, focusing on gradual improvements aligned with top-line growth.

GenAI and Technology Advancement

Tata Elxsi significantly advanced its GenAI adoption during FY26 through comprehensive initiatives including partnerships with AI companies, launch of proprietary automotive SDLC platform DevStudio.ai, curated tool stacks, and rigorous employee upskilling programs. The company is progressing toward becoming an AI-native engineering organization to strengthen differentiation and innovation capabilities.

Management noted varying GenAI adoption rates across verticals, with media and telecom showing higher client interest compared to automotive and healthcare, where regulatory requirements necessitate more specialized AI solutions.

Outlook and Strategic Focus

For FY27, management revised growth expectations to high single digits from earlier double-digit aspirations, citing geopolitical uncertainties and market conditions. The company remains focused on scaling differentiated design-led and AI-enabled offerings while strengthening operational leverage to drive sustainable growth and healthy margins across all three business verticals.