Tata Elxsi Falls Despite Strong Q2FY26 Growth and PAT Rises 7.2% QoQ To ₹154.8 Crore

Bengaluru, October 10, 2025: Tata Elxsi Limited’s share price is witnessing muted investor demand today, even though the company reported strong Q2FY26 growth. As of 9:32 AM, the shares of the company were down by 0.73%, or 40.50 points, and were trading at ₹5,532.50. Until now, the shares have traded within a range of ₹5,622 and ₹5,406. The traded volume stood at 1.70 lakh shares, with the company’s market cap at ₹34,716 crore.

Tata Elxsi is an Indian company under the Tata Group, which provides design and technology services. The company was established in 1989 and is headquartered in Bengaluru, Karnataka. The shares of the company are listed on NSE with the ticker symbol TATAELXSI and on BSE with the code 500408.

Shares Fall Despite Strong Q2FY26 Growth

The shares are witnessing a negative investor demand, despite the company reporting strong Q2FY26 growth. The company’s revenue from operations was ₹918.1 crore, higher by 2.9% quarter-on-quarter. The EBITDA was ₹193.3 crore, while the EBITDA margin was 21.1%. The profit before tax (PAT) is ₹214.7 crore, a 9.4% rise compared to the same quarter. The revenue from US markets saw a 7.9% growth compared to the same quarter. Furthermore, Tata Elxsi recorded an improvement of 110 basis points in PBT margin and 50 basis points in PAT margin.

Media and Communications Lead by 31% Segment-wise

In the company’s latest quarter, Media & Communication contributed over 31% of total revenue, and grew 6.8% quarter-over-quarter. This was helped by big projects and new clients in many regions. Transportation contributed 53% of revenue, with a 0.7% growth. It was supported by software-driven vehicle programs.

The company also opened a dedicated Cloud HIL (Hardware-in-the-Loop) Centre for Suzuki in Thiruvananthapuram. It is meant to expand its engineering tie-ups beyond its Pune centre. In Healthcare & Lifesciences, the company launched a Global Tech Centre for medical devices in partnership with Bayer. It will focus on radiology solutions, and currently has a strong pipeline of new deals and clients.

The System Integration & Managed Services segment showed the strongest growth, jumping 20.5% QoQ. This performance was due to demand in AI data centres, hybrid workloads, and edge computing. The company also won Dell Technologies’ Global Supplier of the Year award in the ISG division.

Sustaining Growth Momentum

Manoj Raghavan, CEO and Managing Director, said: “Tata Elxsi delivered strong operational excellence and resilient growth across customers, regions, and industry verticals despite a challenging environment. We continue to invest in AI-first offerings, build an AI-ready talent pipeline, and focus on margin improvement to sustain growth momentum into the second half of FY26.”

REF: https://nsearchives.nseindia.com/corporate/TELNSE_09102025171929_Q2PressRelease.pdf

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