Tata Elxsi Ltd(TATAELXSI)

NSE: TATAELXSIBSE: 500408

₹ 3,728.15+0.98%refreshed 26 Oct, 03:30 pm ISTMarket cap: ₹ 23,229 crWebsite: www.tataelxsi.comUpdated: 24 Oct 2026

About

Tata Elxsi provides design-led, AI-native engineering R&D services across three main verticals: Transportation, Media & Communication, and Healthcare & Life Sciences. In FY26 it reported revenue of Rs 3,757.42 Cr, and in Q2 FY27 quarterly revenue was Rs 1,055.7 cr. Software development & services makes up 97.5% of FY26 revenue, and system integration & support services makes up the remaining 2.5%.^[1][2][3][4]

Business segments

Software development & services contributed 97.5% of FY26 revenue (₹3,664.8 Cr) at a 31.4% EBIT margin. It covers engineering R&D for transportation, media & communications and healthcare.^[4]
System integration & support services contributed 2.5% of FY26 revenue (₹92.62 Cr) at a 6.9% EBIT margin. It covers enterprise infrastructure and the deployment of AI and data-centre systems.^[4]
Transportation made up 55.9% of software development & services revenue in FY26 and more than 55% in Q1 FY27.^[5]
Healthcare & Life Sciences made up 10.9% of software development & services revenue in FY26. Management described it as below 10% of total revenue in Q1 FY27.^[5]
Others (battery energy storage, smart manufacturing) was about 2% of software development & services revenue in Q2 FY27, growing about 74% year on year in constant currency.^[3]

Key operating numbers

Revenue grew 2.3% quarter on quarter and 7.8% year on year in constant currency in Q2 FY27, with all three verticals growing sequentially.^[3]
In Q2 FY27, in constant currency, Transportation grew 2.0% QoQ and 9.4% YoY, Media & Communications 3.4% QoQ and 10.9% YoY, and Healthcare 3.5% QoQ but fell 14.5% YoY.^[3]
Utilisation was 78% in Q2 FY27, up from 74.7% in Q1 FY27; management points to a prior peak of 81-82%.^[3][6]
Attrition was 15.9% in Q2 FY27, compared with 16.0% (last twelve months) in Q1 FY27.^[3][6]
Headcount was 11,149 in Q2 FY27, compared with 11,336 in Q1 FY27 and 11,540 at the end of FY26.^[3][5]
Onsite/offshore revenue mix was 26.0/74.0 in Q2 FY27; offshore was 74.1% in Q1 FY27 and 73.8% in FY26.^[3][5]
Fixed-price contracts were 57.8% of revenue in Q1 FY27, compared with 58.9% in Q4 FY26 and 50.7% in Q4 FY25.^[6]

Customers and markets

Transportation growth in Q2 FY27 came from auto OEM wins in the US and India, largely from customers outside the Tata group.^[3]
OEMs gave 75% of transportation revenue in FY26, up from 69% in FY25. The OEM share of automotive revenue was 78% in Q1 FY27.^[5]
More than 90% of software development & services revenue in FY26 came from existing clients.^[5]
Exports account for more than 80% of total revenue, as of FY26.^[5]
In FY26, Japan and Europe led growth in transportation, while North America provided most of the revenue in Media & Communication and in Healthcare.^[5]
Suzuki has two dedicated centres under a 5 - 10 year SDV partnership: a development centre in Pune and a Cloud HIL centre in Thiruvananthapuram opened in Q2 FY26.^[7]
In FY26 it set up a Global Technology Centre for Medical Devices for Bayer, under a deal of at least 5 years, and an Engineering Centre for Terumo.^[5]
In Q1 FY27, JSW Motors partnered with the company to set up the JNEXT NextGen Technology Centre in Pune, covering SDV, ADAS, electrification and AI/ML.^[6]

Platforms and products

Its own platforms include AVENIR (SDV suite), NEURON (network automation), RegAI (healthcare), TETHER AUTO (connected vehicles), DevStudio.Ai and MOBIUS+ (EV battery lifecycle).^[5]
In FY26, TETHER signed two new passenger vehicle OEMs in APAC and agri-equipment OEMs in Europe and Japan.^[5]
In Q1 FY27, NEURON helped Sky in Europe move to zero-touch network operations, with efficiency gains of 30 - 70% across various measures.^[6]
In Q1 FY27, ViTel, an AI material-intelligence platform for medtech, signed a deal with a global medtech company, and AnaTel, an AI-native healthcare development platform, launched.^[6]
Its partnerships with Qualcomm, Infineon, Renesas and ARM support engineering from chip to cloud.^[5]

New areas of business

Off-highway, construction equipment and rail were 7.5 - 8% of transportation revenue in Q3 FY26. The target is 20% within 2 - 3 years.^[8]
In FY26 it handed the prototype of HAL's CATS Warrior unmanned combat aircraft to HAL and delivered a crew module recovery model to ISRO's Human Space Flight Centre.^[5]
Aerospace gained traction in Q2 FY27, including a collaboration with Sarla on eVTOL; management expects large aerospace & defence deals to take 2-3 quarters to scale.^[3]
In Q2 FY26 it won a turnkey airport guidance systems programme for a US aerospace supplier, and in Q1 FY27 an embedded platform deal with a US aerospace systems provider.^[7]
Battery energy storage was started as a new vertical in FY26, aimed at data-centre power and EV markets.^[1]

Recent deals and developments

In Q2 FY27 it made a minority strategic investment in KAVIA AI, a Silicon Valley enterprise AI platform company, to scale AI-driven software engineering.^[3]
Media & Communications growth in Q2 FY27 came from ramp-ups across key engagements and AI-led deal wins.^[3]
In Q4 FY26 it won a multi-year large deal from a global video and broadband device OEM covering its full product engineering portfolio.^[1]
In Q4 FY26 it won multi-year deals with a new APAC EV OEM and a US autonomous mobility company, expected to ramp up over 6 - 12 months.^[1]
The company won a deal with Mercedes-Benz India in FY26 to develop software-defined vehicle programmes.^[5]
In Q3 FY26 it won a multi-year RegAI deal with a European MedTech multinational and a 3-year NEURON network transformation deal with a European telecom operator.^[8]
In FY26 it partnered with MBC to run its new MBCNOW entertainment aggregator.^[5]
Risks the company names include tariffs, geopolitics such as tension in the Gulf in Q4 FY26, and uncertainty in the automotive market.^[5]

Market Cap

₹23,229 Cr

High / Low

₹5,950 / 3,000

Stock P/E

34.3

Price / Book

7.9

Book Value

₹488

EPS

₹100.9

No. of Shares

6.23 Cr

ROCE

30.5%

ROE

21.3%

OPM

23.8%

Debt / Equity

0.00

Sales

₹3,757 Cr

Net Profit

₹628 Cr

Promoter holding

43.9%

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Tata Elxsi Ltd(TATAELXSI)

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