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Tata Elxsi Reports Steady Q1 FY26 with Growth in Transportation Vertical
Industry News- Jul 15,25
Tata Elxsi posts Q1 FY26 revenue of Rs 8.921 billion with 20.9 per cent EBITDA margin; transportation business recovers while new AI and digital design deals fuel optimism for Q2 and beyond.
Bangalore
Tata Elxsi, one of the world’s foremost providers of design-led technology services, reported operating revenue of Rs 892.1 crore for the first quarter of financial year 2025–26.
Key highlights for quarter ending 30 June 2025:
- Revenue from operations stood at Rs 8.921 billion
- EBITDA of Rs 1.867 billion, with a margin of 20.9 per cent
- Profit Before Tax (PBT) reached Rs 1.963 billion, PBT margin at 21.1 per cent
- Profit After Tax (PAT) was Rs 1.444 billion, with a PAT margin of 15.5 per cent
Manoj Raghavan, CEO and Managing Director of Tata Elxsi, shared: “In Q1 FY26, we reported operating revenue of Rs 8.921 billion, with EBITDA margins of 20.9 per cent and a PBT margin of 21.1 per cent. Despite headwinds in key markets—due to macroeconomic and customer-specific factors impacting R&D investments—we maintained resilience in our largest vertical, executed on large deals, and continued expanding client relationships. Our transportation segment, which contributes over half of our revenue, saw a 3.7 per cent QoQ growth in reported currency. The quarter saw benefits from earlier wins including SDV-focused deals with Mercedes-Benz, a major European OEM, and Suzuki. We secured two strategic deals this quarter and expect continued momentum driven by a healthy pipeline.”
Media and Communications (MCV) declined 5.5 per cent QoQ in constant currency, primarily due to transition costs from large deal wins in the previous quarter. “We anticipate growth resuming in Q2 on the back of deal ramp-ups. Notably, we secured a strategic, multi-million-dollar design-digital contract with a US tech major focused on next-gen AI and product development,” he said.
In Healthcare and Life Sciences (HLS), Tata Elxsi delivered two major wins with a global pharma-biotech firm in Europe and a MedTech company in Japan. HLS declined 6.7 per cent QoQ in constant currency, mainly due to tariff impacts affecting medical device engineering in the US. A rebound is expected in H2 FY26.
Manoj Raghavan added, “Our Design and Systems Integration teams delivered an experiential project in Japan, contributing to the Bharat Pavilion at World Expo 2025 in Osaka—recognised among the Top 5 pavilions globally. Looking ahead, we expect margins and bottom-line to improve through FY26, supported by a rebound in our core verticals and improved resource utilisation from recent capacity investments. Our reimagined website, launched this quarter, showcases our ‘AI-first’ and human-centric approach—reflecting our mission to simplify complexity, elevate lives, and design purposeful, sustainable experiences.”
Tata Elxsi is a global leader in design and technology services, supporting sectors such as automotive, broadcasting, communications, healthcare, and transportation. By applying design thinking and leveraging digital technologies—such as IoT, Cloud, Mobility, Virtual Reality, and AI—Tata Elxsi helps businesses reimagine their products and services for a smarter future.
Tata Elxsi
Manoj Raghavan
Q1 FY26
Automotive Technology
AI and Design Services
Transportation Sector
India
World Expo 2025
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