Bangalore, October 13, 2026: Tata Elxsi reported a 15% year-on-year increase in operating revenue to Rs 1,055.7 crore for the second quarter of FY27, with sequential growth of 3.4% compared to the previous quarter. The company’s EBITDA rose 7.1% quarter-on-quarter to Rs 231.4 crore, resulting in an EBITDA margin of 21.9% for the period ended September 30, 2026.
Growth was recorded across all three of Tata Elxsi’s main verticals—Transportation, Media & Communications, and Healthcare & Life Sciences. Revenue from the Transportation vertical grew 2.0% quarter-on-quarter in constant currency terms, while Media & Communications and Healthcare & Life Sciences registered 3.4% and 3.5% growth respectively in constant currency.
Key deals and collaborations
During the quarter, Tata Elxsi secured a multi-year deal with a leading automotive OEM for a next-generation cloud-based telematics and connected vehicle ecosystem. The company also announced a collaboration with Sarla Aviation to support the development of Shunya, described as India’s first indigenous electric vertical take-off and landing (eVTOL) aircraft. In the healthcare segment, Tata Elxsi won a comprehensive product engineering mandate from a global renal care leader to redesign a next-generation home dialysis system, covering full-stack product development and re-engineering across UX, mechanical engineering, electronics, embedded systems, and regulatory compliance.
AI and technology investments
Tata Elxsi reported continued traction in the aerospace segment and highlighted a strategic AI deal with a global technology leader for a Gen AI-based virtual assistant focused on multilingual intelligence and digital experiences. In September, the company made an early-stage investment in Silicon Valley-based KAVIA AI, expanding a partnership that began in July 2025. The collaboration aims to help enterprises manage and modernise complex software environments at scale across the AI-Driven Development Lifecycle (AIDLC).
Management commentary
Manoj Raghavan, CEO and Managing Director of Tata Elxsi, said the company delivered broad-based growth across all key verticals and improved EBITDA margins despite implementing salary revisions across the employee base during the quarter. He added that Tata Elxsi continues to invest in AI and Gen AI offerings and expects to sustain growth in the second half of the financial year.
Tata Elxsi provides design and technology services across industries including automotive, broadcast, communications, healthcare, and transportation.
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