Tata Elxsi Q2 FY27 results: Net profit flat at ₹170 crore QoQ; firm sees broad-based growth across all three key verticals

The design and technology services provider’s revenue from operations increased 3.4% quarter-on-quarter (QoQ) to ₹1,056 crore in Q2 FY26 in contrast to ₹1,021 crore in the previous quarter of the current financial year. In constant currency (CC) terms, the revenue from operations rose 2.3%.

The Tata Group firm said that the growth was broad-based across all three key verticals.

For the quarter under review, its earnings before interest and taxes (EBIT) came in at ₹208 crore as against ₹194 crore in Q1 FY27, marking a jump of 7.3%. The margin expanded to 19.7% in the reporting quarter as compared to 19% QoQ.

In Q2 FY27, Tata Elxsi’s revenue from the transportation vertical grew 2% sequentially in cc terms. The media and communications vertical recorded 3.4% growth, while the healthcare and life sciences vertical grew 3.5% QoQ in cc terms.

Revenue from the media and communications vertical grew on the back of continued deal ramp-ups and new GenAI-powered engagements. Transportation revenue increased, supported by continued growth in the OEM business and new deals in aerospace and defence.

Growth in the healthcare and life sciences vertical was supported by new deal wins in turnkey product engineering and digital health.

Here’s what management said

“Our focus on operational efficiencies across the organization has resulted in improved EBITDA margins, with EBITDA expanding 70 bps QoQ, despite salary revisions implemented across the entire employee base in the quarter,” said Manoj Raghavan, CEO and Managing Director, Tata Elxsi.

Raghavan said the company continues to invest in applying generative AI and AI to innovation and product engineering across its chosen verticals and domains, which is reflected in the new deals it is winning.

He added that Tata Elxsi delivered operational excellence and resilient growth across customers and industry verticals amid a volatile macroeconomic environment and expects to sustain growth in the second half of the financial year while investing in AI-first offerings and services and maintaining operational excellence.

On Tuesday, Tata Elxsi shares settled at ₹3,426.70 apiece on the National Stock Exchange, surging 5.21%. The earnings, however, came after the market hours.