Tata Elxsi shares gain 2% as firm partners with Sarla Aviation for 'Shunya' aircraft; all you need to know

Shares of Tata Elxsi were trading over 2.2% higher at ₹3,660 apiece on the NSE in noon deals on Tuesday, September 1.

The stock rallied as the Tata Group company and Sarla Aviation, an advanced air mobility company, signed a Memorandum of Understanding (MoU) to collaborate on the development of Shunya, Sarla Aviation's six-seater plus one pilot electric vertical take-off and landing (eVTOL) aircraft.

The press release said that the partnership brings together Sarla Aviation's vision for urban air mobility and Tata Elxsi's expertise in aerospace, software and flight critical digital engineering to support the aircraft's development, testing and certification.

Collaboration details

Under the collaboration, Tata Elxsi will provide engineering support across avionics such as flight control systems, software integration, testing, verification and validation, and certification, while Sarla Aviation will lead the design, development and type certification of the Shunya platform. The engagement also creates opportunities to extend support across sensor fusion-based navigation software, industrial and structural design, and airworthiness test support.

Designed for 300 Km+ range of flight operations, Shunya combines vertical take-off and landing capability with fixed-wing cruise efficiency, enabling runway-independent operations and improved propulsion efficiency.

"The aircraft's first flight is targeted within the next 18 to 24 months, with certification activities expected to follow. The development reflects the growing role of Indian Aerospace companies in next-generation aircraft and advanced air mobility platforms," the press release added.

What top officials said

Sarla Aviation

Adrian Schmidt, Co-Founder & CEO, Sarla Aviation, said: “Building a new class of aircraft is not simply an engineering challenge. It requires bringing together people and organisations willing to solve problems that have never been solved before in this market. Tata Elxsi's experience in complex aerospace systems gives us access to capabilities that are critical as we take Shunya from concept to reality. What excites me most about this collaboration is that it brings together two teams that believe advanced air mobility can move from ambition to everyday infrastructure much sooner than many think.”

Tata Elxsi

Manoj Raghavan, CEO & Managing Director, Tata Elxsi, said: “Every major shift in transportation has been enabled by a combination of engineering innovation and ecosystem readiness. Advanced air mobility is no different, and Sarla Aviation's vision for Shunya reflects the ambition driving this transformation. Initiatives like this create opportunities to apply expertise built across aerospace, mobility and digital technologies to entirely new aviation platforms.”

Jayaraj Rajapandian, Head of Aerospace, Tata Elxsi, added: “Shunya is a reminder of how quickly aerospace innovation is evolving in shaping the Technology landscape in India. As aircraft become increasingly fly-by-wire, electrified and connected, entirely new opportunities are emerging to rethink how people, goods and critical services move. We are excited to work alongside Sarla Aviation as they take this vision forward and contribute to the next phase of its journey.”

About Tata Elxsi

Tata Elxsi is a design and technology services company that provides engineering and digital technology solutions to clients across sectors including transportation, media and communications, and healthcare. Its services include aerospace engineering, mobility, software-defined systems, electrification, digital engineering and artificial intelligence-led product development.

Tata Elxsi Q1 FY27 earnings

Tata Elxsi posted an 18.17% year-on-year (YoY) increase in its profit after tax (PAT) to ₹170.6 crore during the quarter ended June 30, 2026 (Q1 FY27), compared with ₹144.37 crore seen in the first quarter of the 2025-26 fiscal year (Q1 FY26).

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

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.