Bengaluru, October 13: Design-led technology services provider Tata Elxsi Limited has reported a marginal dip in its net profit to ₹170.30 crore for Q2 FY27 mostly due to higher operational costs and employee benefits. Its operational revenue has, however, grown 15% from the same period last year while rising 3.4% from the previous quarter.
The company’s core software development and services segment has remained the primary growth driver, generating ₹ 1,027.87 crore in revenues during the quarter, while its system integration and support services made ₹27.79 crore during the quarter.
Its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter stood at ₹ 231.4 crore, marking a 7.1% year on year (YoY) increase from last year, while its total revenue from operations has reached ₹1,055.7 crore for the quarter.
“During the second quarter of FY’27, Tata Elxsi reported operating revenue of ₹ 1,055.7 crores, growing 3.4% QoQ in rupee terms and 2.3% QoQ in constant currency terms. This growth was broad-based across all three key verticals.
The Transportation vertical, which accounts for more than 55% of our SDS segment, posted constant currency growth of 2.0% in QoQ terms. We are seeing continued traction in adjacencies, especially for the aerospace segment.
Our Media & Communications vertical, which accounted for 33.6% of revenue of our SDS segment, registered continued growth at 3.4% QoQ in constant currency terms. This growth was led by continued deal ramp-ups across our leading customers and new deal wins.
During the quarter, our healthcare business also recorded a healthy growth of 3.5% QoQ in constant currency terms.
Our focus on operational efficiencies across the organization has resulted in improved EBITDA margins, with EBITDA expanding 70 bps QoQ, despite salary revisions implemented across the entire employee base in the quarter.
We are continuing to invest ahead in applying Gen AI and AI thoughtfully to the innovation and product engineering context in our chosen verticals and domains. This is reflected in the new deals we are winning across verticals.
We have delivered strong operational excellence and resilient growth across customers and industry verticals in a volatile macro environment. We look forward to sustaining growth in the second half of the financial year, even as we continue to invest in differentiated AI-first offerings and services and focus on continued operational excellence,” Mr. Manoj Raghavan, CEO and MD of Tata Elxsi, said in a regulatory filing.
