Tata Elxsi Ltd reported a 45.2 per cent YoY profit decline in the third quarter of FY26. The company reported a net profit of Rs 108 crore in Q3 FY26, compared to Rs 199 crore in Q3 FY25.
Furthermore, Tata Elxsi reported a modest 1.52 per cent revenue growth in the quarter. The Tata Group company’s revenue from operations in Q3 FY26 was at Rs 953 crore compared to Rs 939 crore in the corresponding quarter of the previous fiscal year.
“I am pleased with the operational excellence we demonstrated in improving margins, with EBIDTA growing to Rs. 222.2 crores, an increase of 220 bps QoQ. This was led by operational and delivery excellence, and improved utilisation.” Manoj Raghavan, CEO and Managing Director, Tata Elxsi, said in a statement.
Tata Elxsi 9-month performance
For the first three quarters of FY26, i.e last nine months, Tata Elxsi’s net profit declined by 33% on a yearly basis to Rs 408 crore, as the company’s net profit in the same period of FY25 was Rs 612 crore.
The company’s revenue from operations also declined by 2% during the same period. Tata Elxsi’s revenue from operations in the first nine months of FY26 stood at Rs 2,763 crore, compared to a revenue of Rs 2,820 crore in the first nine months of FY25.
CEO Raghavan said, “I am pleased with our overall performance and resilience in revenues, margins, and customer additions through the quarter. We are entering the last quarter of the financial year with a commitment for growth and the confidence in our design-led and AI-enabled engineering capabilities”
Key business drivers
Tata Elxsi stated that the growth was led by the transportation business, with accelerated ramp-ups in SDV, as well as the winning of earlier-in-the-year led OEM deals. The company won a new program with a strategic off-highway OEM from the US for the development of a complex operator information and control system.
The company added that the Media and Communications and the Healthcare and Life Sciences verticals were impacted by seasonal furloughs and some key deal awards that were delayed at the end of the quarter