Tata Elxsi CEO Manoj Raghavan On Key Drivers Behind Company's Growth In Q3FY26

In Q3 FY2025-26, Tata Elxsi, a top provider of design led technology services, reported operating revenue of Rs. 953.5 crores, up 3.9% quarter-on-quarter (QoQ), and a Profit Before Tax (PBT) at Rs 242.0 crores, higher 12.7% QoQ. 

During the same period, the revenues from operations at Rs. 953.5 crores, up 3.9% QoQ, EBITDA at Rs 222.2 crores, EBITDA Margin at 23.3%, Profit Before Tax (PBT) at Rs. 242.0 crores, up 12.7% QoQ, and Profit After Tax (PAT) stood at Rs 179.1 crores, up 15.7% QoQ. 

Commenting on the company’s performance in Q3FY26 Manoj Raghavan, CEO and MD at Tata Elxsi, said,“For the third quarter of FY’26, Tata Elxsi reported operating revenues of 953.5 Cr, a growth of 3.9% QoQ. Growth was led by our transportation business, with accelerated ramp-ups in SDV led OEM deals won earlier in the year, and normalisation of work streams and programs with a strategic OEM client that was impacted in the previous quarter."

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Among regions, growth was led by Europe and US with broad-based growth across key accounts and verticals. While the media and communications, and the healthcare and life sciences verticals were impacted by seasonal furloughs and some key deal awards that were delayed at the end of the quarter, the company remains confident of "recovery and growth in both these verticals starting Q4 of the current financial year."

"In the healthcare business, our investment in Gen AI powered regulatory workflows is seeing market success, with a multi-million multi-year deal award to transform the regulatory workflow processes with a European MedTech leader that delivers significant improvement in cycle time and quality. We also won a large deal for a next-gen drug delivery system for critical illness treatment, reflecting Tata Elxsi’s proven heritage of innovation and turnkey product engineering," he said.

Tata Elxsi said the EBIDTA growing to Rs 222.2 crores, an increase of 220 bps QoQ was led by operational and delivery excellence, and improved utilisation.

"We are continuing to invest ahead in applying Gen AI and AI thoughtfully to the innovation and product engineering context, specific to workflows in our chosen verticals and domains, and scaling adoption across the company," the top company official said.

About Tata Elxsi

Tata Elxsi is amongst the world’s leading providers of design and technology services across industries including Automotive, Broadcast, Communications, Healthcare and Transportation. Tata Elxsi is helping customers reimagine their products and services through design thinking and application of digital technologies such as IoT (Internet of Things), Cloud, Mobility, Virtual Reality and Artificial Intelligence.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Investors are advised to consult their financial advisors and consider market conditions before making any investment decisions.