Tata Elxsi slides as Q3 PAT decline 45% YoY to Rs 109 cr
However, revenue from operations rose 1.52% to Rs 953.47 crore in Q3 FY26 as against Rs 939.17 crore posted in Q3 FY25.
Profit before tax in Q3 FY26 stood at Rs 146.27 crore, down by 42.82% from Rs 255.84 crore in Q3 FY25.
EBITDA dropped by 9.89% YoY to Rs 222.2 crore in the third quarter of FY26. EBITDA margin for Q3 FY26 was 23.3% as against 26.3% in Q3 FY25.
The company's total headcount in Q3 of FY26 stood at 11,594. Attrition rate stood at 15.6% in Q3 FY26 as compared to 12.4% in Q3 FY25.
On the segmental front, revenue from software development and services stood at Rs 930.33 crore in Q3 FY26, reflecting a 1.26% jump year-on-year. Meanwhile, revenue from system integration and support services was Rs 23.13 crore, up 12.88% year-on-year during the same period.
On a quarter-on-quarter basis, the company?s net profit fell 29.66%, while revenue from operations rose 3.85% in Q3 FY26.
Profit before tax was 146.27 crore in Q3 FY26, down 31.87% as against Rs 214.71 crore in Q2 FY26.
EBITDA stood at Rs 222.2 crore in Q3 FY26, up 14.95% as against Rs 193.3 crore in Q2 FY26. The company?s EBITDA margin improved to 23.3% in Q3 FY26 from 21.1% in Q2 FY26.
Tata Elxsi reported a one-time exceptional charge of Rs 95.69 crore in Q3 FY26 due to the implementation of the New Labour Codes effective November 21, 2025. The charge reflects higher employee benefit provisions under Ind AS 19, with the company noting that any further impact from pending rules will be accounted for once notified.
Manoj Raghavan, CEO and managing director (MD) of Tata Elxsi, said, ?The company reported operating revenue of Rs 953.5 crore in Q3 FY26, up 3.9% quarter-on-quarter, led primarily by growth in the transportation business. He said accelerated ramp-ups in software-defined vehicle (SDV) deals and normalisation of programmes with a strategic OEM supported performance during the quarter. The company also won a new programme from a US-based off-highway OEM for the development of a complex operator information and control system.
Raghavan said Europe and the US led regional growth, with broad-based traction across key accounts and verticals. While the Media & Communications and Healthcare & Life Sciences verticals were impacted by seasonal furloughs and delayed deal closures, he expressed confidence in recovery from Q4 FY26.
In healthcare, Tata Elxsi secured a multi-million, multi-year deal with a European MedTech major to transform regulatory workflows using GenAI-powered solutions, and also won a large deal for a next-generation drug delivery system. In telecom, the company was selected by a major European telco as a strategic partner for a three-year autonomous network transformation, leveraging its NEURON platform.
Raghavan said EBITDA rose 220 basis points QoQ to Rs 222.2 crore, driven by operational excellence, delivery efficiencies and improved utilisation. He added that Tata Elxsi continues to invest in GenAI and AI-led innovation across verticals and enters the final quarter of the financial year with confidence, backed by a strong deal pipeline, large wins and a design-led, AI-enabled engineering proposition.?
Tata Elxsi is amongst the world?s leading providers of design and technology services across industries including Automotive, Broadcast, Communications, Healthcare and Transportation.
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