Tata Elxsi reported a 10 per cent rise in September quarter net profit to ₹170.30 crore. Revenue rose 15 per cent to ₹1,056 crore. The shares gained more than 7 per cent in early trade on October 14.
Profit and Revenue Rise on the Year
Tata Elxsi said on Tuesday, October 13, that net profit for the quarter ended September 30, 2026 was ₹170.30 crore. That compares with ₹154.82 crore a year earlier, a rise of 10 per cent, PTI reported. The company released the results after market hours.
Revenue from operations rose to ₹1,055.66 crore from ₹918.10 crore in the same quarter last year, a gain of about 15 per cent. Total income, which includes other income, climbed to ₹1,090.57 crore from ₹966.98 crore.
Other income fell to ₹35 crore from ₹49 crore, Business Standard reported. Profit before tax rose to ₹239.10 crore from ₹214.72 crore. Earnings per share were ₹27.34, Business Upturn reported.
Quarter-on-Quarter Picture
Revenue grew 3.38 per cent from ₹1,021.11 crore in the June quarter. Net profit slipped 0.18 per cent from ₹170.60 crore, so the bottom line was broadly flat.
The software development and services segment brought in ₹1,027.87 crore of revenue. Its segment result was ₹313.44 crore, Whalesbook reported.
Tata Elxsi crossed ₹1,000 crore in quarterly revenue for the first time in the June quarter. The September quarter extended that level.
Margin Beats Estimates
The operating margin reached 19.7 per cent. It was about 19 per cent in the previous quarter and above market expectations of around 19.2 per cent, Business Upturn reported.
Capital 360 One said the EBIT margin expanded 70 basis points from the previous quarter despite wage hikes. It credited currency tailwinds, operating leverage and the absence of one-off items.
Revenue in constant currency grew 2.3 per cent from the previous quarter, against an estimate of 1.5 per cent. Year on year, constant currency growth was 7.8 per cent, according to Nirmal Bang.
Transportation and Media Lead Growth
Growth was broad across verticals. Transportation rose about 2 per cent from the previous quarter in constant currency. Capital 360 One said the gain came mainly from the United States and India, even as Europe stayed uncertain.
PTI said growth came from transportation, media and communications, and healthcare. In the June quarter, transportation had grown 13.3 per cent from a year earlier. Media and communications had grown 22.2 per cent.
AI Deals and an Investment
Nirmal Bang said the company secured several strategic deals in the quarter. One was a GenAI-powered multilingual virtual assistant for a global technology leader. Another was an AI-powered enterprise knowledge graph platform for a global media and entertainment company.
Tata Elxsi also made an early-stage investment in KAVIA AI, which builds tools for AI-driven software engineering. Nirmal Bang said the revenue contribution and pace of monetisation from these AI efforts remain key points to watch.
Management Expects a Better Second Half
Nirmal Bang said management expects the second half to be better than the first. It said continued growth in transportation, media and communications, and healthcare and life sciences should support that view.
Management remains optimistic about healthcare and expects growth to improve after the recent trough. The recovery depends on deal ramp-ups and closures. Softness in the European automotive market remains a risk to visibility, Nirmal Bang said.
Capital 360 One said management expects momentum to persist in the near term, except in European transportation.
Brokerages Differ on Outlook
Brokerages took different views on the results, Business Standard reported. Capital 360 One said revenue and margins were ahead of its estimates. It said it would stay circumspect, given heightened macro uncertainty, until the company delivers more consistently.
The brokerage also said margin improvement would be gradual and meaningfully below consensus estimates. Nirmal Bang described a sequential recovery in the quarter.
Shares React to the Results
The stock gained more than 7 per cent in early trade on October 14. India TV reported a jump of about 8 per cent and put the company’s market capitalisation at ₹22,907.01 crore.
The Nifty 50 was down 0.12 per cent at 22,694.65 at 9:17 am IST, Business Standard reported.
The shares had closed at ₹3,257 on the NSE on October 12, up 4.06 per cent for the session, Kotak Neo reported. The company announced its results a day later.
After its June quarter results on July 14, the stock had fallen 3.3 per cent to close at ₹3,697.30 on the NSE.
June Quarter Set the Base
The June quarter was a recovery quarter. Revenue rose 14.46 per cent from a year earlier to ₹1,021.11 crore. Net profit rose 18.17 per cent to ₹170.60 crore. Net profit fell 22.58 per cent from the March quarter.
EBITDA was ₹216 crore in that quarter. Original equipment manufacturers contributed 78 per cent of automotive revenue. Healthcare and life sciences grew 1.7 per cent from the previous quarter.
Tata Elxsi also signed its first strategic deal for its ViTEL platform with a global medtech company, Kotak Neo reported.
Manoj Raghavan, chief executive and managing director, said in July that FY27 is a year of future focus. He said the company is preparing for a world reshaped by AI.
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Last Year’s Comparison
A year ago, the picture was weaker. In the September 2025 quarter, net profit fell 32.5 per cent to ₹154.81 crore. Revenue from operations fell 3.9 per cent to ₹918.10 crore.
EBITDA margin was 21.1 per cent in that quarter, against 27.9 per cent a year before, Business Standard’s Capital Market desk reported. Headcount stood at 11,951 and attrition at 15.4 per cent, against 12.5 per cent a year earlier. That quarter, Tata Elxsi set up a cloud hardware-in-the-loop centre for Suzuki Motors in Thiruvananthapuram. It also opened a global technology centre for medical devices for Bayer.
