Tata Elxsi Q2 results: Net profit soars 7% QoQ to ₹155 crore, margin expands to 21%

In the corresponding period of the previous fiscal, the company’s net profit stood at ₹144.44 crore.

The design and technology services company witnessed a 2.91% QoQ increase in its revenue from operations to ₹918.10 crore during the quarter under review, compared to ₹892.1 crore in Q2 of FY25.

The company said it delivered strong QoQ growth across overseas markets despite dynamic market conditions and geopolitical uncertainties, led by the US, with its US revenue growing 7.9% QoQ in the quarter ended September 2025.

“We continue to win new customers in our core verticals and adjacent markets in the US region, which is expected to add to the growth momentum of the company, backed by differentiated technology capabilities and offshore execution excellence,” said Manoj Raghavan, CEO and Managing Director of Tata Elxsi.

Its media and communications business, which comprises over 31% of its revenue, reported 6.8% QoQ growth, bolstered by large deal ramp-ups and new deal wins across regions.

Tata Elxsi’s transportation vertical, accounting for more than 53% of its revenue, grew less than marginally, 0.7% QoQ growth during the quarter, driven by the momentum of large deal wins and global OEM SDV programs.

“Our System Integration business, which provides Experiential Technology Solutions and Intelligent Managed Services across various verticals, recorded a smart growth of 20.5% over the previous quarter,” he added.

At an operational level, the firm’s EBITDA (earnings before interest, tax, depreciation and amortisation), also known as operating profit, advanced as much as 3.54% QoQ to ₹193.3 crore in the September quarter of FY26, as against ₹187 crore in the second quarter of the previous fiscal year.

Its EBITDA margin expanded to 21.1%, in contrast to 8.63% in the previous quarter.

“I am happy to announce that during the second quarter, Tata Elxsi set up an exclusive Cloud HIL centre for Suzuki Motors in Thiruvananthapuram. This is the second engineering centre under the Tata Elxsi-Suzuki partnership, following the Offshore Development Centre in Pune, which was set up last year,” Raghavan added.

During the second quarter, Tata Elxsi inaugurated a Global Technology Centre for Medical Devices for Bayer, he said.

“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,” Raghavan said, adding, “We look forward to carrying this momentum into the second half of the current financial year, even as we continue to invest in differentiated AI-first offerings and services, building an AI-ready talent pipeline, and strong operational excellence for bottom-line growth and margin improvement.”

The company's employee count stood at 11,951 at the end of the second quarter of FY26.

Board allots shares

The company also said that its board of directors, at the meeting, allotted 1,195 equity shares, pursuant to the exercise of performance stock options by the eligible employees, under ‘Tata Elxsi Limited Performance Stock Option Plan 2023’.

Consequent to this allotment, the paid-up equity share capital of the company stands increased to ₹62,29,37,580, divided into 6,22,93,758 equity shares of ₹10 each from ₹62,29,25,630 divided into 6,22,92,563 equity shares of ₹10 each.