Tata Elxsi PAT declines 23% QoQ to ₹171 crore in Q1 FY27, revenue jumps 3%; check numbers

The company said it has delivered a healthy performance with growth in two of its primary verticals, supported by strong deal execution and continued momentum in large strategic engagements.

It posted an 18.17% year-on-year (YoY) increase in its profit after tax (PAT) to ₹170.6 crore during the quarter under review, compared with ₹144.37 crore in the first quarter of the 2025-26 fiscal year (Q1 FY26).

On a sequential basis, however, it declined 22.58% quarter-on-quarter QoQ from ₹220.35 crore in the fourth quarter of FY26, according to a regulatory filing dated Tuesday.

It recorded a 14.46% YoY surge in its revenue from operations to ₹1,021.11 crore in the first quarter of the current fiscal year, as against ₹892.1 crore in the corresponding period a year ago.

On a QoQ basis, it jumped 2.75% from ₹993.75 crore in the quarter-ago period.

Its revenue crossed the key ₹1,000 crore milestone during the quarter, supported by the increasing relevance of its design-led and AI-enabled engineering capabilities in its chosen industries.

Geographically, Europe was its biggest market in terms of revenue mix, contributing 42.2% in the quarter ended June 30, 2026. It was followed by the Americas at 31.7%, India at 16.4% and the rest of the world (RoW) at 9.7%.

At an operational level, its EBITDA (earnings before interest, tax, depreciation and amortisation), also known as operating profit, stood at ₹216 crore for the reporting quarter, marking a 15.7% YoY growth from ₹186.7 crore in the June quarter of FY26.

However, it fell 11.7% QoQ from ₹244.6 crore in the March quarter of FY26.

While the EBITDA margin expanded YoY to 21.2% in Q1 FY27, from 20.9% in the year-ago period, it contracted on a QoQ basis from 24.6% in the preceding quarter.

Key highlights

Its transportation business reported a growth of 13.3% YoY, driven by accelerated original equipment manufacturer (OEM) engagements and strategic wins in the off-road and aerospace segments.

The company scaled its offerings and capabilities to help auto OEMs pivot to connected, multi-powertrain and AI-powered mobility, with OEM revenues now constituting 78% of our automotive revenues, it stated.

In the media & communications segment, the company delivered 22.2% YoY growth through continued ramp-up of key engagements and expanded programs with global operators, broadcasters and device OEMs.

“Our Healthcare and Life Sciences business reported a growth of 1.7% QoQ, amidst a muted business environment for the healthcare industry. We are investing in pivoting to an AI-first, design-led, and regulatory-aware engineering approach in this business, partnering with leading AI companies across the world,” said Manoj Raghavan, CEO and Managing Director of Tata Elxsi.

He stated that the company has gained traction across verticals with its platform-enabled offerings to help customers accelerate their strategic roadmaps of integrating AI into their workflows, products and customer experience.

“FY27 marks a year of future focus for the company, as we prepare and equip ourselves for a world reshaped by AI. We are making targeted investments in specialized talent, AI-powered platforms, tools and infrastructure, to pivot to a Domain + AI future. These investments are enhancing customer value creation with tangible outcomes, and opening new avenues for growth and positioning us for the year and decade ahead,” Raghavan added.

Raghavan further said that Tata Elxsi is well positioned to address the strategic priorities of its customers in its chosen verticals, including connected, intelligent and software-defined products, digital transformation, AI-powered efficiencies and customer experience, and engineering modernisation.

“We are firmly focused on sustainable growth, deepening our engagements with key customers and positioning ourselves to shape and win strategic long-term deals and add marquee customers, even as we protect and improve upon our industry-leading margins,” he added.

Shares of the firm closed 3.30% lower at ₹3,697.30 per unit on the National Stock Exchange (NSE) on Tuesday, July 14. However, the results were posted after the markets closed.

Tata Elxsi has a total market capitalisation of ₹23,112.21 crore as of July 14, 2026, according to data on the NSE.