Tata Elxsi announced its third quarter financial results for the period ending December 31, 2025, reporting operating revenue of ₹953.5 crores, a 3.9% increase quarter-on-quarter (QoQ).

The company's EBITDA stood at ₹222.2 crores with an EBITDA margin of 23.3%. Profit Before Tax (PBT) was ₹242.0 crores, showing a 12.7% QoQ growth, while Profit After Tax (PAT) rose by 15.7% QoQ to ₹179.1 crores. These figures exclude a one-time exceptional item related to the new labor code.

Mr. Manoj Raghavan, CEO and Managing Director, highlighted that the growth was primarily driven by the transportation business, with accelerated ramp-ups in deals related to Software-Defined Vehicles (SDV) and a normalized engagement with a strategic OEM client. He also mentioned a new program won with a US-based off-highway OEM for an operator information and control system.

Growth in regions was led by Europe and the US. While the Media and Communications, and Healthcare and Life Sciences verticals experienced some impact from seasonal furloughs and delayed deal awards, recovery and growth are anticipated starting Q4 FY26. The Healthcare business saw success with a multi-million, multi-year deal for a European MedTech leader to transform regulatory workflows using Gen AI, and another deal for a next-gen drug delivery system.

Tata Elxsi was also chosen as a strategic partner by a major European Telco for a 3-year network transformation journey using its NEURON platform. The company emphasized operational excellence, leading to an improved EBITDA margin of 220 bps QoQ, driven by delivery excellence and better utilization. Investments in Gen AI and AI for product engineering are being scaled across the company, reflected in deal wins and customer value propositions.