Tata Elxsi's revenue rose by 3.4% quarter-on-quarter to ₹1,056 crore in the second quarter of fiscal year 2027, while net profit remained flat at ₹170 crore. The company experienced broad-based growth across its three main business verticals: transportation, media and communications, and healthcare and life sciences.
- Revenue increased 3.4% QoQ to ₹1,056 crore.
- Net profit remained steady at ₹170 crore.
- EBIT rose 7.3% to ₹208 crore with margin expansion to 19.7%.
- Transportation vertical revenue grew 2% in constant currency terms.
- Media and communications revenue grew 3.4% QoQ.
- Healthcare and life sciences revenue grew 3.5% QoQ.
- Company invests in generative AI and AI-driven innovation.
How did Tata Elxsi perform financially in Q2 FY27?
The company’s revenue from operations increased by 3.4% quarter-on-quarter to ₹1,056 crore, up from ₹1,021 crore in the previous quarter. In constant currency terms, the revenue rose by 2.3%. Earnings before interest and taxes (EBIT) increased by 7.3% to ₹208 crore, with the EBIT margin expanding from 19% to 19.7%.
Which business verticals showed growth?
Tata Elxsi’s growth was broad-based across its three key verticals:
- Transportation: Revenue grew 2% sequentially in constant currency, supported by growth in the original equipment manufacturer (OEM) business and new aerospace and defence deals.
- Media and Communications: Revenue increased 3.4% quarter-on-quarter, driven by ongoing deal ramp-ups and new engagements powered by generative AI.
- Healthcare and Life Sciences: Revenue grew 3.5% quarter-on-quarter, supported by new deals in turnkey product engineering and digital health.
What role does AI play in Tata Elxsi’s growth?
The company continues to invest in generative AI and artificial intelligence to drive innovation and product engineering across its verticals. These investments have contributed to winning new deals and enhancing operational efficiency.
How is Tata Elxsi managing operational efficiency?
Despite salary revisions across its workforce, Tata Elxsi improved its EBITDA margins by 70 basis points quarter-on-quarter. The CEO, Manoj Raghavan, highlighted the company’s focus on operational efficiencies as a key factor in sustaining growth and maintaining profitability.
What are the company’s future expectations?
Tata Elxsi expects to sustain growth in the second half of the financial year while continuing to invest in AI-first offerings and maintaining operational excellence amid a volatile macroeconomic environment.
Frequently Asked Questions
Q: What was Tata Elxsi’s net profit in Q2 FY27?
A: The net profit was ₹170 crore, remaining flat compared to the previous quarter.
Q: Which vertical had the highest revenue growth?
A: The healthcare and life sciences vertical grew the most at 3.5% quarter-on-quarter in constant currency terms.
Q: How is AI influencing Tata Elxsi’s business?
A: AI and generative AI are central to Tata Elxsi’s innovation strategy, helping the company win new deals and improve product engineering.
Q: Did Tata Elxsi’s stock price react to the earnings report?
A: Yes, the shares closed at ₹3,426.70 on the National Stock Exchange, up 5.21% following the earnings announcement.
