Tata Elxsi Q2 Profit Rises 10% to ₹170 Crore; Revenue Up 15%

Tata Elxsi reported a 10% year-on-year rise in net profit to ₹170.30 crore for the July–September quarter (Q2 FY27), compared with ₹154.82 crore a year earlier. Revenue from operations grew 15% to ₹1,055.66 crore from ₹918.10 crore, the design and technology services company said on Tuesday, October 13.

Sequentially, profit was flat, slipping 0.2% from ₹170.60 crore in the June quarter. Revenue rose 3.4% from ₹1,021.11 crore, while constant currency growth was 2.3%. Profit before tax increased 11% year-on-year to ₹239.10 crore, and earnings per share rose to ₹27.34 from ₹24.85.

Operating performance improved during the quarter. EBIT rose 7.3% sequentially to ₹208 crore from ₹194 crore, and the EBIT margin widened to 19.7% from 19% in the previous quarter.

All three verticals grow

Growth was spread across the company’s three main businesses. In constant currency terms, media and communications grew 3.4% quarter-on-quarter, helped by ramp-ups of existing deals and new engagements built on generative AI. Healthcare and life sciences rose 3.5% on new turnkey product engineering and digital health contracts.

Transportation, the company’s largest vertical, grew 2%, supported by its business with automotive manufacturers and fresh deals in aerospace and defence.

Manoj Raghavan, chief executive officer and managing director, attributed the margin improvement to efficiency measures across the organisation. He said he expects growth to continue through the second half of FY27 as the company keeps investing in AI-first offerings.

For the first half of the year, revenue from operations rose 15% to ₹2,076.76 crore from ₹1,810.20 crore. Net profit for the six months grew 14% to ₹340.90 crore from ₹299.19 crore.

Market view

The quarterly profit fell short of the roughly ₹180 crore analysts had estimated, according to ScanX. Total income rose at a slower pace than revenue, reflecting lower income outside core operations compared with a year earlier.

Shares of Tata Elxsi closed 5.21% higher at ₹3,426.70 on the NSE on Tuesday, ahead of the results, which were announced after market hours.

The numbers mark a recovery from the weak patch the company faced in FY26, when revenue declined in the first quarter amid softness in its automotive and media businesses.

Investors will track the stock’s reaction on Wednesday and look for signs that the sequential margin gains can hold. The company’s ability to convert its aerospace, defence and healthcare wins into sustained growth will be the key test in the second half of the year.