Tata Elxsi, the design and technology arm of the Tata Group, witnessed a significant drop in profits for the third quarter of FY2025–26 (Q3 FY26). The company’s consolidated net profit fell by 45% year-on-year to Rs 108.89 crore in Q3 FY26, down from Rs 199 crore in the same quarter last fiscal year.
Despite the profit decline, Tata Elxsi’s revenue from operations slightly increased to Rs 953.47 crore during the quarter, marking a 1.5% growth from Rs 939.17 crore in Q3 FY25. On a sequential basis, the profit decreased by 29.7% from Rs 154.82 crore in the previous quarter.
Manoj Raghavan, the Chief Executive Officer and Managing Director of Tata Elxsi, attributed the growth in the quarter to the company’s transportation business. He highlighted the faster ramp-ups in software-defined vehicle-led original equipment manufacturer deals as a key support for the performance.
Raghavan expressed satisfaction with winning a new program with a strategic off-highway OEM from the US for developing a complex operator information and control system. He emphasized Tata Elxsi’s design digital proposition for turnkey system and software development integrated with HMI and human-centric design.
Tata Elxsi’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q3 FY26 stood at Rs 222.2 crore. The company reported an EBITDA margin of 23.3%, as per its stock exchange filing.
