More Stories

Informist, Tuesday, Jan. 13, 2026

 

Please click here to read all liners published on this story

--Tata Elxsi: Revenue growth in Q3 was volume-led 
--CONTEXT: Comments by Tata Elxsi's mgmt in post-earnings analyst concall 
--Tata Elxsi: Utilisation was better in Q3 
--Tata Elxsi: Expect steady growth in automobile segment going ahead 
--Tata Elxsi: Expect automotive segment to help increase growth in FY27 
--Tata Elxsi: Expect positive signs in media and communications business Q4 
--Tata Elxsi: Aim at caliberated hiring going ahead 
--Tata Elxsi: Hiring in big numbers at least a quarter or two away 
--Tata Elxsi: In the process of bidding for couple of large deals 
--Tata Elxsi: Don't expect significant impact from labour codes in future

 

By Shakshi Jain and Simran Rede

 

NEW DELHI/MUMBAI – Design and technology services company Tata Elxsi Ltd. is confident of sustainable growth in its transportation business in the financial year 2026-27 (Apr-Mar), alongside recovery and growth in its other two verticals from the current quarter, the management said in a post-earnings conference call with analysts Tuesday.

 

"We are really looking to see accelerated momentum in the next financial year for the transportation business for us," a top company executive said. The transportation business, which accounts for over 55% of the company's top line, grew 7.7% sequentially in the December quarter. Meanwhile, the revenue for the December quarter of the media and communications vertical declined 0.3% on quarter and that of the healthcare vertical fell 3.6%.

 

Overall, the company's growth in the December quarter was led by volumes, the management said. The quarter also saw utilisation improve. Tata Elxsi reported 3.9% sequential growth in its top line for the quarter at INR 9.54 billion. However, the Tata Group company's net profit for the quarter fell nearly 30% sequentially to INR 1.09 billion owing to a substantial one-time cost incurred on account of the new labour codes.

 

Going forward, the company does not anticipate a significant impact from the codes. "...we expect this impact not to be more than 15-20 basis point, but probably that will also get... compensated with the other levels and... utilisation factors that we still see, you know, is a scope for improvement over there," the management said.

 

SEGMENTAL COMMENTARY

Tata Elxsi expects steady growth in business from the automotive sector to help it "accelerate" the growth rate of its transportation business in FY27. "...there are discussions happening, there are new deals, new discussions, new customer additions, and all of that is happening," the management said, answering a question on demand improvement in the automotive sector. 

 

In the media and communications vertical, some large deals have been ramped up and the company is in the process of bidding for a couple more large deals, according to the management. In the healthcare and life sciences segment, a company executive said, "I think we bottomed out in this business in Q3, and hopefully, right, the turnaround will again happen from Q4 onwards."

 

In the automotive business, it is the top five or 10 accounts where the company is seeing deal ramp-ups, but these are spread across geographies. The specific areas in which the company is seeing higher traction include software-defined vehicles, electrification, automated driving technologies, and advanced driver assistance systems. "The connected car... platform and the applications around it is also another area that we see a lot of traction (in) going forward," the management said.

 

HIRING TREND

On hiring, the management said the company is aiming at calibrated hiring for now. Large-scale hiring is at least a quarter or two away, it said. In the December quarter, the company's workforce declined to 11,594 from 11,951 in the September quarter. Attrition at the company increased 20 bps on quarter and 320 bps on year to 15.6% in Oct-Dec.

 

The company disclosed its financials for the December quarter after the stock market closed Tuesday. Its shares closed 1.8% higher on the National Stock Exchange at INR 5,793.  End

 

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.