Tata Elxsi Ltd.Revenue ₹1,055.7 Cr, EBITDA margin 21.9%

Tata Elxsi reported Q2 FY27 operating revenue of ₹1,055.7 crore, growing 2.3% in constant currency.

EBITDA was ₹231.4 crore, up 7.1% quarter-on-quarter and 19.7% year-on-year, and the EBITDA margin was 21.9%, up 70 basis points sequentially despite the annual wage revision. The CFO attributed 60 to 70 basis points of the improvement to cross-currency benefits and 10 to 20 basis points to operational leverage, with one-time items from the prior quarter mostly gone. Transportation grew 2% quarter-on-quarter in constant currency, media and communication 3.4% and healthcare and life sciences 3.5%.

The US and India did well while Europe stayed soft, with large automotive deals awaiting decisions. Utilization was about 78%. Management does not give guidance but expects the second half to be better than the first, with revenue higher year-on-year, and a slightly upward margin trajectory from operational leverage and pyramid management. Salary hikes for the year are complete. The third quarter is typically short with fewer working days, and possible customer furloughs are awaited.