Tata Elxsi is a design and technology services company serving automotive (Transportation), Media & Communications, and Healthcare & Life Sciences clients, entering this quarter after crossing Rs. 1,000 Cr in quarterly revenue for the first time. The print will speak to whether margins recover from Q1's 21.2% EBITDA margin as one-off costs roll off against a company-wide wage hike, and whether the healthcare vertical — near-flat for two quarters — starts to fire up.
| Results date | October 13, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 1,021.11 Cr |
| Previous quarter PAT | Rs. 170.60 Cr |
| Previous quarter EBITDA margin | 21.2% |
| Market cap | Rs. 19,061.76 Cr |
| CMP | Rs. 3,059.4 |
The Board of Tata Elxsi meets on Tuesday, October 13, 2026, to approve the audited financial results for the quarter and half-year ended September 30, 2026, under Regulation 29(1) of SEBI LODR. The trading window for designated persons has been closed from September 24, 2026 until 48 hours after the results are declared.
The Q2 FY27 earnings call is scheduled for October 13, 2026, at 19:00 Hrs IST. Dial-in numbers have been provided for India, USA, UK, Japan, Singapore, and Hong Kong. Attendees include Manoj Raghavan (MD & CEO), Nitin Pai (CMO & CSO), Nalin Rana (CFO), and Sneha V (Company Secretary & Compliance Officer).
The quarter's central test is margin: management guided that the ~150 bps of one-off costs in Q1 FY27 — deal transition costs, employee retention, customer-related costs, upfronting of annual costs, and a Chapter 11 customer provision — would largely go away in Q2, offsetting a company-wide wage hike whose quantification was explicitly promised at the end of Q2. Revenue entered the quarter at a record Rs. 1,021.1 Cr with Transportation up 13.3% YoY in natural currency and Media & Communications up 22.2% YoY, while Healthcare & Life Sciences was near flat at -0.3% QoQ in constant currency after two large deals slipped from Q4 FY26 into Q1 FY27. Utilization stood at 74.7% in Q1 against an 80% FY27 target, with management saying large-scale hiring will only begin once utilization reaches the 80–82% range and every 1% utilization gain adds 25–30 bps of margin. The rupee averaged higher against the dollar through the quarter — from ~95.17/USD in late August to a sharp fall in September as Brent crude surged above $100/bbl — offering a continued though diminished tailwind versus Q1's +40–50 bps cross-currency benefit, while the Iran conflict kept client decision cycles elongated, particularly in Europe, which is over 40% of automotive revenues. Management enters the call having committed to "still show a profitable quarter in Q2" and to a PBT margin of approximately 27% by exit of Q4 FY27, a 5.1-point gap from Q1's 21.9%.
Performance vs Guidance Tracking: Management's stated FY27 targets going into the call:
Margin bridge: one-off roll-off vs wage hike
Healthcare revival after two flat quarters
Utilization, hiring and attrition
Client concentration and geographic mix
Management reiterated on the Q1 FY27 call that "our aspiration continues to be the same. We just need our healthcare business also to fire up." The guidance was earlier revised down from double-digit aspirations at Q4 FY26, citing geopolitical instability and elongated client decision-making.
The CFO said the ~150 bps of one-off costs in Q1 — deal transition costs, employee retention, customer-related costs, and upfronting of annual costs — should go away in the next one or two quarters, partially offset by planned wage hikes. Management also committed to "still show a profitable quarter in Q2" while digesting the wage hike and removing one-timers.
Management repeatedly declined to quantify the Q2 FY27 wage hike, saying "I think we'll get back at the end of Q2… We don't want to give you a number at this point in time." The quantification is therefore due on the upcoming Q2 earnings call.
Healthcare & Life Sciences declined 13.1% QoQ in constant currency in Q4 FY26 and was near flat at -0.3% QoQ CC in Q1 FY27, after two large deals expected to close in Q4 FY26 slipped to Q1 FY27. Management has made the vertical's recovery a condition for its double-digit FY27 healthcare growth guidance.