Tata Elxsi Ltd. reported a 29.7% decline in net profit for the third quarter of fiscal 2026, missing analysts’ estimates, according to an exchange filing on Tuesday.
The company’s consolidated bottom line for the quarter ended September fell to Rs 109 crore from Rs 155 crore in the previous quarter. Analysts polled on Bloomberg had estimated the bottom line at Rs 174 crore.
Tata Elxsi made a one-time provision of Rs 96 crore on account of the new labour codes, as per the filing.
The revenue rose 3.8% sequentially to Rs 953 crore from Rs 918 crore. The consensus estimate of analysts tracked by Bloomberg was of Rs 950 crore.
The earnings before interest and tax, or EBIT, saw a 17.4% advance to Rs 199 crore as against Rs 170 crore in the preceding quarter.
The EBIT margin stood at 20.9% versus 18.5% in the previous quarter.
Tata Elxsi Q3 Results Key Highlights (Consolidated, QoQ)
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Net profit down 29.7% at Rs 109 crore versus Rs 155 crore
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Revenue up 3.9% to Rs 953 crore versus Rs 918 crore
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EBIT up 17.4% to Rs 199 crore versus Rs 170 crore
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EBIT margin At 20.9% versus 18.5%
Segmental Performance
Growth was driven by the company’s transportation business, according to CEO and MD Manoj Raghavan.
“Growth was led by our transportation business, with accelerated ramp-ups in SDV led OEM deals won earlier in the year, and normalisation of workstreams and programs with a strategic OEM client that was impacted in the previous quarter”, he stated.
While the transportation revenue grew by 7.7% sequentially other segments such as Media and Communications and Healthcare registered a 0.3% and 3.6% decline in revenue on a quarter-on-quarter basis.
“Media and Communications, and the Healthcare and Life Sciences verticals were impacted by seasonal furloughs and some key deal awards that were delayed at the end of the quarter, I am confident of recovery and growth in both these verticals starting Q4 of the current financial year”, the CEO highlighted.
He added that the company is continuing to invest in artificial intelligence as they enter into the final quarter of the year.
“We are continuing to invest ahead in applying Gen AI and AI thoughtfully to the innovation and product engineering context, specific to workflows in our chosen verticals and domains, and scaling adoption across the company”, Raghavan underscored.
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