Tata Elxsi stock: Second-quarter revenue rises across key divisions

Tata Elxsi reported broad-based growth for the second quarter ended September 30, 2026, with operating revenue reaching 1,055.7 crore rupees, up 15.0 percent year on year. Electronics For You published the figures on October 22, 2026.

Growth spans core divisions

Constant-currency revenue increased 2.3 percent from the preceding quarter. Transportation revenue rose 2.0 percent sequentially in constant currency, while media and communications gained 3.4 percent and healthcare and life sciences advanced 3.5 percent.

The transportation business, which represents more than 55 percent of software development services, benefited from a multi-year automotive telematics project and Tata Elxsis collaboration with Sarla Aviation on the Shunya electric vertical take-off and landing aircraft.

Margins improve despite cost pressure

EBITDA rose 7.1 percent sequentially to 231.4 crore rupees, while EBITDA margin expanded to 21.9 percent. The improvement came despite company-wide salary revisions, with Chief Executive and Managing Director Manoj Raghavan pointing to operational efficiency as a driver of the stronger margin.

Media and communications added new projects, including a generative AI contract for a multilingual virtual assistant. Healthcare and life sciences secured work to redesign a next-generation home dialysis system spanning user experience, mechanical and electronic engineering, and regulatory development.

AI investment adds strategic angle

Tata Elxsi also made an early-stage investment in Silicon Valley-based KAVIA AI in September 2026. The investment extends an initial partnership begun in July 2025 and is aimed at helping enterprise customers modernize complex software environments across the software engineering lifecycle.

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