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Tata Elxsi for Q1FY27 reported revenue of ₹1,021.1 crore

ICICIdirect Research 15 Jul 2026 DISCLAIMER

News: Tata Elxsi for Q1FY27 reported revenue of ₹1,021.1 crore, up 2.8% QoQ/14.5% YoY. In CC terms, revenue grew 1.3% QoQ and 6.5% YoY. Vertical-wise in CC terms on a QoQ basis, Media & Communication (33.4% of revenue mix) grew 2.9%, while Transportation (55.3% of mix) and Healthcare & Lifesciences (9.2% of mix) declined 0.4% and 0.3%, respectively. Absolute EBITDA stood at ₹216 crore (down 11.7% QoQ/ up 15.7% YoY) with EBITDA margin declining ~340 bps QoQ to 21.2%. PAT came in at ₹170.6 crore, down 22.6% QoQ but up 18.2% YoY. The company crossed the ₹1,000 crore quarterly revenue milestone during the quarter.

View: Tata Elxsi delivered a steady quarter, supported by continued ramp-up of large Media & Communications engagements and resilient Transportation growth driven by OEM, off-road and aerospace wins, despite macro softness in Europe. Management retained its aspiration of delivering high single-digit growth for FY27, supported by visibility in Transportation and Media over the next 2–3 quarters, while Healthcare recovery remains contingent on delayed deal closures. Margins were impacted by one-off transition costs, higher onsite deployment, subcontracting, AI capability investments and customer-related provisions, with management expecting most temporary costs to normalize over the coming quarters while continuing investments in its Domain+AI platform strategy. A company-wide wage hike in Q2 will partly offset this unwind, with management guiding to a sequential margin ramp through the rest of the year. 

Impact: Neutral

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