Tata Elxsi Q3 FY26 Earnings Results: Revenue Rises 3.9% To ₹953.5 Crore, EBITDA Margin Up 220 Bps

Tata Elxsi reported steady growth for the quarter ended December 31, 2025. Revenue from operations increased 3.9% quarter-on-quarter to ₹953.5 crore, supported by healthy demand across key verticals.

Tata Elxsi Profitability And Margin Expansion

EBITDA rose to ₹222.2 crore during the quarter, with EBITDA margin improving sharply to 23.3%, up by 220 basis points QoQ.

Profit before tax (PBT) grew 12.7% QoQ to ₹242.0 crore, while profit after tax (PAT) increased 15.7% QoQ to ₹179.1 crore, excluding a one-time labour code-related item.

Transportation Business Leads Growth

The transportation segment was the main growth driver, aided by the faster ramp-up of software-defined vehicle (SDV) deals and the normalisation of work with a key global OEM client.

Tata Elxsi also won a new deal from a US-based off-highway OEM to develop an advanced operator information and control system, highlighting its strength in design-led engineering.

Regional And Vertical Trends

Europe and the US led regional growth with broad-based momentum across accounts. Media & Communications and Healthcare & Life Sciences saw temporary softness due to seasonal furloughs and delayed deal closures, with recovery expected from Q4 FY26.

Key Wins In Healthcare And Telecom

In healthcare, Tata Elxsi secured a multi-year, multi-million euro deal with a European MedTech company to modernise regulatory workflows using Gen AI. It also won a large contract for a next-generation drug delivery system.

In telecom, the company was selected by a major European operator as a strategic partner for a three-year network transformation using its NEURON platform for 4G and 5G automation.

Focus On Efficiency And AI Investments

Margin improvement was driven by better utilisation and strong delivery execution. Tata Elxsi continues to invest in Gen AI and AI-enabled engineering to strengthen its long-term growth engine.

Tata Elxsi Share Price Movement

Tata Elxsi share price (NSE: TATAELXSI) was trading at ₹5,793, up 1.75% or ₹99.50, as of 3:30 pm IST on January 13. The stock opened at ₹5,744, touched an intraday high of ₹5,824 and a low of ₹5,681. The company’s market capitalisation stood at ₹36.11 lakh crore, with a price-to-earnings ratio of 53.81. Tata Elxsi’s 52-week high is ₹6,735, while the 52-week low is ₹4,700. The stock offers a dividend yield of 1.29%, with a quarterly dividend amount of ₹18.68 per share.

Conclusion

With revenue at ₹953.5 crore and EBITDA margins improving by 220 bps in Q3 FY26, Tata Elxsi showed strong operational resilience. A solid deal pipeline and focus on AI-led innovation support a positive growth outlook ahead.

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