Tata Elxsi a global leader in design-driven technology services, has announced its financial results for the first quarter ending June 30, 2025. Tata Elxsi reported its financial results for the first quarter of FY26, ending June 30, 2025, showcasing a steady performance amid a challenging business environment. The company posted a revenue of ₹892.1 crore from operations. EBITDA stood at ₹186.7 crore, reflecting a margin of 20.9%. Profit Before Tax (PBT) came in at ₹196.3 crore with a margin of 21.1%, while Profit After Tax (PAT) was ₹144.4 crore, translating to a PAT margin of 15.5%.
Despite global uncertainties and industry-specific challenges impacting research and development investments, Tata Elxsi demonstrated operational strength and resilience. The company focused on strategic deal execution and continued to deepen customer relationships, helping to sustain momentum across core verticals.
Commenting on the quarter, CEO and Managing Director Manoj Raghavan acknowledged the difficult global environment, noting that macroeconomic pressures and delays in client decision-making affected several sectors. However, he emphasized that Tata Elxsi maintained stability by delivering on large engagements and securing strategic wins that support long-term growth.
The transportation segment, which contributes over half of the company’s revenue, recovered strongly with a 3.7% quarter-on-quarter increase in actual currency and stable performance in constant currency. This growth was largely fueled by major deals involving software-defined vehicle (SDV) solutions with prominent automotive names like Mercedes-Benz, a European OEM, and Suzuki. The company also secured additional strategic partnerships during the quarter.
In contrast, the media and communications business saw a 5.5% decline in constant currency. This drop was attributed to transition-related investments following significant deal wins in the previous quarter. Tata Elxsi remains optimistic about this segment, expecting a return to growth in the next quarter, supported by the ramp-up of large deals. Notably, the company secured a high-value design and digital contract with a leading U.S. tech firm for AI-based development work.
The healthcare and life sciences segment declined by 6.7% quarter-on-quarter in constant currency, mainly due to tariff-related slowdowns in U.S. spending by two key clients. However, the outlook for this segment remains positive, as the company added new clients, including a top European pharma-biotech company and a Japanese medical technology firm. These developments are expected to drive recovery in the second half of FY26.
Tata Elxsi’s Design and Systems Integration teams completed a high-profile experiential design project for the Bharat Pavilion at World Expo 2025 in Osaka, which was rated among the top five pavilions globally, alongside the U.S., Italy, Japan, and France. The company remains optimistic about margin improvements and profitability as utilization increases and large deals mature in the coming quarters. Tata Elxsi also unveiled a revamped website that reflects its AI-first, human-centered design philosophy, aimed at creating impactful, purpose-driven digital experiences.
Tata Elxsi is a global technology and design firm delivering R&D and engineering services across automotive, broadcast, healthcare, communications, and mobility sectors. The company supports global OEMs and Tier 1 suppliers with expertise spanning autonomous driving, connected vehicles, electric drivetrains, and software-defined architectures. With a team of over 13,000 professionals, Tata Elxsi operates innovation centres and design studios worldwide.
