365telugu.com online news,January,14,2026: Tata Elxsi, a leading global design-led technology services company, has reported healthy financial performance for the third quarter of FY26, ended December 31, 2025, with steady revenue growth and a sharp improvement in margins.
The company’s revenue from operations stood at ₹953.5 crore during the quarter, registering a growth of 3.9 per cent quarter-on-quarter (QoQ). Operational efficiencies helped Tata Elxsi significantly improve profitability, with EBITDA rising to ₹222.2 crore and EBITDA margin expanding to 23.3 per cent, an improvement of 220 basis points QoQ.
Profit before tax (PBT) came in at ₹242 crore, marking a 12.7 per cent QoQ increase, while profit after tax (PAT) rose 15.7 per cent QoQ to ₹179.1 crore, excluding the impact of a one-time exceptional item related to the new labour code.
Transportation Business Leads Growth
Commenting on the performance, Tata Elxsi CEO and Managing Director Manoj Raghavan said growth during the quarter was primarily driven by the transportation segment. The company witnessed accelerated ramp-ups in software-defined vehicle (SDV) programmes with OEMs and a normalisation of workstreams with a key strategic automotive client.
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He highlighted a new programme win with a US-based off-highway OEM for developing a complex operator information and control system, showcasing Tata Elxsi’s strength in integrated system engineering, software development and human-centric design.
Strong Regional Performance
Geographically, Europe and the US led growth, with broad-based momentum across key accounts and verticals. While Media & Communications and Healthcare & Life Sciences saw temporary softness due to seasonal furloughs and delayed deal closures, the management expects recovery in these verticals from the fourth quarter.
In Healthcare, Tata Elxsi secured a multi-million, multi-year deal with a European MedTech major to transform regulatory workflows using Gen AI-powered solutions. The company also won a large engagement for developing a next-generation drug delivery system for critical care.
Telecom and AI Focus
In the telecom space, Tata Elxsi was selected as a strategic partner by a major European telecom operator for a three-year network transformation programme aimed at building autonomous networks. The engagement will leverage NEURON, the company’s orchestration and automation platform for 4G and 5G networks.
Raghavan said the improvement in margins was driven by strong operational discipline, delivery excellence and better utilisation. He added that Tata Elxsi continues to invest in Gen AI and AI-led engineering solutions across its focus verticals, which is increasingly reflected in deal wins and customer value propositions.
Expressing confidence about the future, he said the company is entering the final quarter of FY26 with strong momentum, a robust deal pipeline, new customer additions and continued investments in next-generation technologies, positioning Tata Elxsi well for sustained growth in the coming quarters.