Tata Elxsi , a leading design and technology services provider, has reported a 2.9% quarter-on-quarter growth in operating revenue for Q2, reaching INR 918.10 crores. The company's performance, while modest, shows resilience in a challenging market environment and sets the stage for anticipated stronger growth in the second half of the fiscal year.

Financial Highlights

The company's EBITDA stood at INR 193.30 crores with a margin of 21.1%, while Profit Before Tax (PBT) was INR 214.70 crores, maintaining a healthy margin of 22.2%.

Segment Performance

Transportation

The transportation business, accounting for over 53% of Tata Elxsi's revenues, registered a modest growth of 0.7% quarter-on-quarter. The company reported robust pipeline momentum driven by global OEM Software-Defined Vehicle (SDV) programs and other large deal wins.

Tata Elxsi opened a second engineering center in partnership with Suzuki, focusing on cloud hardware and loop simulation setup to enable faster SDV transition. This move underscores the company's commitment to advancing automotive technology and strengthening its position in the sector.

Media & Communication

The Media & Communication business showed strong performance with a 6.8% sequential growth. This uptick was primarily driven by the ramp-up of large deals secured in previous quarters and new deal wins. The company also highlighted the launch of MBC Now, a Saudi Arabia-headquartered content super aggregator, powered by Tata Elxsi's in-house developed OTT platform, TEPlay.

Healthcare and Life Sciences

The Healthcare and Life Sciences segment experienced a slight decline of 2.3%, attributed to the conclusion of some large regulatory and MDR programs. However, the company remains optimistic about this sector, citing a strong pipeline of new customers and large deals across key regions.

Strategic Developments

Tata Elxsi announced the launch of a Dedicated Technology Center for Bayer devices and Radiology. This center is designed to co-develop advanced radiology devices and technology, aiming to enable early and accurate diagnosis and treatment of critical illnesses.

The company also received an award from Dell Technologies in the Best Infrastructure Solutions Group supplier category, recognizing its capabilities in infrastructure design integration and run management for AI-powered enterprise applications.

Outlook

Management expressed confidence in a stronger performance for the second half. Manoj Raghavan, Managing Director and CEO of Tata Elxsi, stated, "We have delivered strong operational excellence and growth across customers, regions and industry verticals in this quarter, and we have created a strong foundation for sustainable growth."

The company is particularly optimistic about its transportation and healthcare businesses. While the Media & Communication sector remains subject to market volatilities, Tata Elxsi's diverse portfolio and strategic initiatives position it well for future growth.

As global markets continue to evolve, Tata Elxsi's focus on innovation, strategic partnerships, and expanding its service offerings across key sectors appears to be a sound strategy for navigating the challenges and opportunities ahead.

Tata Elxsi , a leading provider of design and technology services, has announced its financial results for the second quarter of fiscal year 2026, demonstrating resilience in the face of dynamic market conditions and geopolitical uncertainties.

Financial Highlights

For Q2 FY26, Tata Elxsi reported:

• Operating revenue of ₹918.10 crores, up 2.9% quarter-on-quarter (QoQ)
• EBITDA of ₹193.30 crores, with an EBITDA margin of 21.1%
• Profit Before Tax (PBT) of ₹214.70 crores, increasing 9.4% QoQ
• Profit After Tax (PAT) of ₹154.80 crores, growing 7.2% QoQ

Segment Performance

The company's performance across its key business segments showed mixed results:

• Media & Communications: Grew by 6.8% QoQ, accounting for over 31% of total revenue
• Transportation: Registered a 0.7% QoQ growth, contributing more than 53% to the company's revenue
• Healthcare: Experienced a slight decline of 2.3% QoQ

Geographic Performance

Tata Elxsi demonstrated strong growth in overseas markets:

• US market: Led growth with a 7.9% increase QoQ
• Overall international performance: Showed robust QoQ growth across regions

Strategic Developments

During Q2 FY26, Tata Elxsi made significant strides in expanding its capabilities and partnerships:

1. Established an exclusive Cloud HIL (Hardware-in-the-Loop) center for Suzuki Motors in Thiruvananthapuram, marking the second engineering center under their partnership.

2. Inaugurated a Global Technology Centre for Medical Devices in collaboration with Bayer, focusing on radiology and leveraging Tata Elxsi's healthcare engineering expertise.

3. The System Integration business, offering Experiential Technology Solutions and Intelligent Managed Services, recorded a notable growth of 20.5% QoQ.

Management Commentary

Manoj Raghavan, CEO and Managing Director of Tata Elxsi, commented on the results: "We have delivered strong operational excellence and resilient growth across customers, regions and industry verticals in a challenging quarter, and have created a strong foundation for sustainable growth. We look forward to carrying this momentum into the second half of the current financial year."

Future Outlook

Tata Elxsi remains committed to:

• Investing in differentiated AI-first offerings and services
• Building an AI-ready talent pipeline
• Focusing on operational excellence for bottom-line growth and margin improvement

The company's performance in Q2 FY26 demonstrates its ability to navigate challenging market conditions while maintaining growth and profitability. With a strong foundation in place, Tata Elxsi appears well-positioned to capitalize on opportunities in the evolving technology landscape.

Financial Data Overview

As Tata Elxsi continues to expand its global footprint and enhance its technological capabilities, investors and industry observers will be keenly watching its performance in the coming quarters.