Tata Elxsi’s Q3 net profit falls 45 pc to Rs 109 crore

Mumbai, Jan 13 Tata Elxsi, the design and technology arm of the Tata Group, on Tuesday reported a sharp decline in profits for the third quarter of FY2025–26 (Q3 FY26).

The company’s consolidated net profit fell 45 per cent year-on-year (YoY) to Rs 108.89 crore in Q3 FY26, compared with Rs 199 crore in the same quarter last financial year.

On a sequential basis, profit dropped 29.7 per cent from Rs 154.82 crore recorded in the previous quarter.

Despite the fall in profit, Tata Elxsi’s revenue from operations rose marginally to Rs 953.47 crore during the quarter, registering a growth of 1.5 per cent from Rs 939.17 crore in Q3 FY25.

Compared with the previous quarter, revenue improved by 3.9 per cent from Rs 918.1 crore.

Commenting on the performance, Manoj Raghavan, Chief Executive Officer and Managing Director of Tata Elxsi, said growth during the quarter was led by the company’s transportation business.

He noted that faster ramp-ups in software-defined vehicle-led original equipment manufacturer deals, which were secured earlier in the year, supported performance.

“I am especially delighted with the new programme we won with a strategic off-highway OEM from the US for the development of a complex operator information and control system, that underscores Tata Elxsi’s design digital proposition for turnkey system and software development integrated with HMI and human-centric design,” he stated.

He also pointed to the normalisation of workstreams with a strategic OEM client that had been impacted in the previous quarter.

Tata Elxsi’s earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at Rs 222.2 crore for Q3 FY26.

The company reported an EBITDA margin of 23.3 per cent, according to its stock exchange filing.

“This is backed by the strategic shift of our customer base in each of our verticals, new customer additions, large deal wins, investments in future forward technology areas and Gen AI, and the strong deal pipeline we carry into the coming quarter and next financial year,” Raghavan mentioned.

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