Tata Elxsi Limited has released the transcript of its Investors' Conference Call for the quarter and nine-months ended December 31, 2025. The call was held on January 13, 2026.

During the call, the management, including MD & CEO Manoj Raghavan, CFO Gaurav Bajaj, and CSO Nitin Pai, discussed the company's performance and outlook. The company reported a healthy performance in Q3 FY26, with revenue growing 3.2% on a constant currency basis quarter-on-quarter, primarily driven by volume and improved utilization leading to better operating margins.

The transportation business, accounting for over 55% of revenue, grew by 7.7% quarter-on-quarter, fueled by accelerated ramp-ups in SDV-led OEM deals and normalization of programs with a strategic OEM client. The Media and Communication business saw a marginal decline of 0.3% due to seasonal furloughs and delays in deal awards, though ramp-ups in large deals and a healthy pipeline provide optimism.

The Healthcare and Life Sciences business is believed to have bottomed out, with investments in GenAI-powered regulatory workflows showing market success. Growth is expected to return starting Q4 FY26. Geographically, the US and Europe showed broad-based growth, while India was impacted by automotive suppliers.

EBITDA margin improved by 220 basis points to 23.3%, and PBT improved by 200 basis points to 24.2%, excluding an exceptional item. The management expressed confidence in growth and design-led, AI-enabled engineering capabilities moving into the last quarter of the financial year.

Discussions also covered the sustainability of automotive growth, margin improvement potential through utilization and operating leverage, and strategies for the Media and Communication and Healthcare verticals. The company indicated that significant hiring is likely a quarter or two away, with a focus on calibrated hiring based on specific skill requirements and demand.