Tata Elxsi reported revenue from operations of ₹1,056 crore in Q2 FY26, a 3.4% quarter‑on‑quarter increase from ₹1,021 crore in the previous quarter. In constant currency terms revenue rose 2.3%. Net profit for the quarter ended 30 September 2026 was ₹170 crore, a 0.2% decline from ₹170.6 crore in Q1 FY27. Earnings before interest and taxes increased 7.3% to ₹208 crore, raising the EBIT margin to 19.7% from 19%.

The company’s three key verticals all posted sequential growth. Transportation revenue grew 2% in constant currency, supported by continued OEM business growth and new aerospace and defence deals. Media and communications revenue rose 3.4%, driven by deal ramp‑ups and new GenAI‑powered engagements. Healthcare and life sciences revenue increased 3.5% QoQ in constant currency, aided by new turnkey product engineering and digital health deals.

CEO Manoj Raghavan said operational efficiencies across the organisation improved EBITDA margins, with a 70 basis‑point rise QoQ despite salary revisions for the entire employee base. He added that the firm continues to invest in generative AI and AI for innovation and product engineering across its chosen verticals, reflected in the new deals it is winning. Raghavan also noted that Tata Elxsi delivered operational excellence and resilient growth 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 maintaining operational excellence.

On Tuesday, Tata Elxsi shares settled at ₹3,426.70 on the National Stock Exchange, up 5.21%. The earnings announcement was made after market hours. The share price movement followed the release of the earnings report, which showed a marginal 0.2% drop in net profit to ₹170 crore from ₹170.6 crore in the previous quarter.

Tata Elxsi’s Q2 FY27 results show a broad‑based expansion across its core verticals, with revenue up 3.4% QoQ and EBIT margin improving to 19.7%. The company’s focus on AI‑enabled solutions and operational efficiency has led to new deal wins and a resilient order book, even as macroeconomic volatility continues. Management remains confident that the firm will sustain growth in the latter half of the financial year while continuing to invest in AI‑first offerings and maintain high operational standards.