Tata Elxsi Q3FY26 results: Profit drops 45%, revenue rises marginally

Tata Elxsi's Q3FY26 profit fell 45 per cent year-on-year to ₹108.9 crore, though revenue edged up 1.5 per cent to ₹953.5 crore, driven by the company's transportation business

Tata group's design and technology firm, Tata Elxsi, on Tuesday reported a 45 per cent drop in its consolidated net profit at ₹108.89 crore in the third quarter of the financial year 2025-26 (Q3FY26). The company reported a profit of ₹199 crore in the same quarter last year. Sequentially, profit slumped 29.7 per cent from ₹154.82 crore.

 

The company's revenue from operations, however, stood at ₹953.47 crore for the quarter, up 1.5 per cent year-on-year (Y-o-Y) from ₹939.17 crore in Q3FY25. On a sequential basis, revenue improved 3.9 per cent from ₹918.1 crore.

 

"Growth was led by our transportation business, with accelerated ramp-ups in software-defined vehicle (SDV) led original equipment manufacturer (OEM) deals won earlier in the year, and normalisation of workstreams and programs with a strategic OEM client that was impacted in the previous quarter," said Manoj Raghavan, chief executive officer and managing director of Tata Elxsi.

 

He further said that Europe and the United States led regional growth, supported by broad-based expansion across key clients and verticals.

 

"While 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, I am confident of recovery and growth in both these verticals starting Q4 of the current financial year," he added.

 

Tata Elxsi’s earnings before interest, taxes, depreciation and amortisation (Ebitda) for Q3FY26 stood at ₹222.2 crore, with the Ebitda margin at 23.3 per cent.

 

Shares of Tata Elxsi closed at ₹5,796.15 apiece, up 1.7 per cent, on the BSE on Tuesday.