Tata Elxsi (TATAELXSI) investor relations material

Executive summary

• Q2 FY26 operating revenue reached ₹918.1 crore, up 2.9% sequentially, with profit before tax rising 9.4% QoQ to ₹214.7 crore amid challenging market and geopolitical conditions.

• EBITDA for the quarter was ₹193.3 crore with a margin of 21.1%; PBT margin stood at 22.2%.

• Key overseas markets, especially the US, drove growth with 7.9% sequential increase; Media & Communication business grew 6.8% sequentially, aided by large deal ramp-ups and new wins.

• Inaugurated a Global Technology Centre for Medical Devices for Bayer and opened a second engineering center with Suzuki for cloud hardware and SDV simulation.

• Continued investment in AI-first offerings, talent pipeline, and operational excellence to drive sustainable growth.

Financial highlights

• Revenue from operations for Q2 FY26 was ₹918.1 crore, up 2.9% QoQ but down 3.9% YoY; total income at ₹967.0 crore, up 3.9% QoQ, down 5.1% YoY.

• EBITDA margin at 21.1%, PBT margin at 22.2%, PAT margin at 16.0% for Q2 FY26; PAT stood at ₹154.8 crore, up 7.2% QoQ but down 32.5% YoY.

• System integration business grew 20.5% over the previous quarter; Media & Communications contributed over 31% of revenue, Transportation over 53%.

• Utilization improved from 66% to over 70% in the last quarter, with a target of 75% by year-end.

• Other income increased 27% QoQ to ₹48.9 crore.

Outlook and guidance

• H2 expected to outperform H1 in both growth and margins, with double-digit growth targeted in automotive and healthcare for FY27.

• Foundation set for sustainable growth in H2 FY26, with continued focus on AI-driven services and operational excellence for margin improvement.

• Margin recovery anticipated as utilization and revenue increase, with focus on managing wage hikes and FX headwinds.

• Media and communication segment growth expected to moderate in H2 due to ongoing industry stress.