Tata Elxsi , a global leader in design and technology services, has announced a strategic partnership with GSMA, the global mobile industry association, to accelerate network monetization and enterprise API adoption. This collaboration aims to unlock new revenue streams for mobile operators and enhance digital services across key industries, with a primary focus on the automotive and drone sectors.

Key Highlights of the Partnership

• Tata Elxsi joins GSMA under the GSMA Fusion initiative
• Focus on supporting enterprise demand in automotive and drone sectors
• Aim to monetize operator networks through standardized APIs
• Collaboration includes a global Statement of Requirements

Driving Network Monetization for Future-Ready Telcos

Tata Elxsi's partnership with GSMA aligns with its AI First Telco strategy, designed to help operators expand beyond connectivity and capture high-value enterprise opportunities. The collaboration comes at a crucial time, as the global network API market is projected to grow significantly:

This growth is primarily driven by 5G adoption and enterprise digital transformation.

Strategic Focus Areas

The Memorandum of Understanding (MoU) between Tata Elxsi and GSMA outlines several key focus areas:

1. Enterprise Demand Generation
2. Technical Enablement
3. Go-to-Market Acceleration
4. Commercial Models Development

Impact on the Automotive Sector

In the automotive industry, the partnership aims to deliver several use cases leveraging network APIs:

• Enhanced driver and cabin monitoring
• Rear-seat entertainment powered by Quality on Demand (QoD) network APIs
• Location-based services
• KYC for passengers or drivers in shared mobility and fleet operations

These services will be delivered through Tata Elxsi's Connected Digital Platform & Solutions, ensuring seamless integration and efficient consumption of network APIs.

Executive Insights

Rajagopalan Rajappa, Chief Technology Officer – Communication Technologies & Platforms at Tata Elxsi, emphasized the strategic nature of this collaboration: "This collaborative effort is a strategic offering to help telcos transform their value and value proposition for the future. By enabling operators to monetize their networks through standardized APIs, we help them unlock enterprise revenue with best-in-class integration, platform services and managed offerings from Tata Elxsi."

Paresh Modi, Senior Director of GSMA Fusion, highlighted the importance of Tata Elxsi's role: "Their deep enterprise knowledge and expertise in systems integration and software innovation will play an important role in accelerating the adoption of mobile network APIs."

This partnership between Tata Elxsi and GSMA represents a significant step towards transforming the telecommunications landscape, particularly in the automotive and drone sectors. By focusing on network monetization and API standardization, the collaboration aims to create new opportunities for operators and enterprises alike, driving innovation and growth in the rapidly evolving digital ecosystem.

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.