Tata Elxsi (BSE: 500408; NSE: TATAELXSI), a provider of design and technology services, reported operating revenue of ₹1,055.7 crore for the second quarter of FY27, ended September 30, 2026. Revenue increased 3.4% quarter-on-quarter and 15% year-on-year.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at ₹231.4 crore, registering quarter-on-quarter growth of 7.1%. The EBITDA margin improved to 21.9%, supported by operational efficiencies despite salary revisions implemented across the employee base during the quarter.
On a constant-currency basis, revenue grew 2.3% sequentially. All three key business verticals—Transportation, Media and Communications, and Healthcare and Life Sciences—recorded growth during the quarter. The Transportation vertical reported 2% quarter-on-quarter growth in constant-currency terms. The company secured a multi-year contract from a leading automotive original equipment manufacturer (OEM) to develop a next-generation, cloud-based telematics and connected vehicle ecosystem. Tata Elxsi also entered a strategic collaboration with Sarla Aviation to support the development of Shunya, an indigenous electric vertical take-off and landing (eVTOL) aircraft.
The Media and Communications vertical grew 3.4% quarter-on-quarter in constant-currency terms, supported by project ramp-ups among existing customers and new contract wins. During the quarter, Tata Elxsi secured an artificial intelligence contract from a global technology company to develop a generative AI-based virtual assistant focused on multilingual intelligence and digital experiences at global scale.
Healthcare and Life Sciences recorded 3.5% sequential growth in constant-currency terms. The company won a product engineering mandate from a global renal care company to redesign a next-generation home dialysis system. The engagement covers user experience, mechanical engineering, electronics, embedded systems and regulatory compliance.
Manoj Raghavan, CEO and Managing Director of Tata Elxsi, said the company had delivered growth across its key verticals while improving operating margins in a challenging macroeconomic environment. He said the company would continue investing in AI-led product engineering and differentiated services while focusing on operational efficiency in the second half of FY27.
In September 2026, Tata Elxsi also made an early-stage investment in Silicon Valley-based KAVIA AI, expanding a partnership that began in July 2025. The collaboration focuses on helping enterprises manage, modernise and transform complex software environments through an AI-driven development lifecycle platform that combines engineering knowledge, collaboration, traceability and deployment capabilities. Tata Elxsi said it would continue to develop AI-based offerings for its chosen industry segments as it works to sustain growth through the remainder of the financial year.
Tata Elxsi provides design and technology services across automotive, broadcast, communications, healthcare and transportation industries. The company helps customers develop products and services using design thinking and digital technologies, including the Internet of Things, cloud computing, mobility, virtual reality and artificial intelligence.
