Tata Elxsi (TATAELXSI) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw revenue growth between 3.2% and 3.9% QoQ, led by transportation, with strong performance in the US and Europe and operational excellence; media and healthcare declined due to seasonality but are expected to recover.

• Continued investments in GenAI and innovation, with large deal wins and new customer additions supporting future growth.

• Audited financial results for the quarter and nine months ended December 31, 2025, were approved by the Board on January 13, 2026.

• Statutory auditors issued an unmodified opinion, confirming fair presentation and compliance with Ind AS.

Financial highlights

• Revenue from operations reached ₹95,347.43 lakhs (₹953.5 Cr), up from ₹91,810.23 lakhs in the previous quarter, with total income at ₹999.5 Cr.

• EBITDA margin improved by 220 bps to 23.3% and PBT by 200 bps to 24.2%, excluding a one-time exceptional item from the new Labour Code.

• Net profit for the quarter was ₹10,889.22 lakhs, down from ₹15,481.91 lakhs, impacted by a one-time exceptional item.

• EPS (basic and diluted) at ₹28.74, up 15.7% QoQ, down 10.0% YoY; basic and diluted EPS for the quarter were ₹17.48.

• Gross margin and operating profit were affected by a one-time exceptional item of ₹9,568.88 lakhs due to New Labour Codes.

Outlook and guidance

• Expectation of steady and potentially accelerated growth in transportation for the next financial year, with continued ramp-ups and new business in adjacencies.

• Media and communication and healthcare are expected to recover and return to growth from Q4 FY26, with optimism for double-digit growth in both transportation and healthcare in FY27.

• The impact of the New Labour Codes will continue to be evaluated as related rules are notified by the government.