Tata Elxsi Reports Q4 FY26 Revenue Rise and Sharp Margin Expansion

– Tata Elxsi posted a strong Q4 FY26, with revenue edging higher and margins expanding sharply, driving robust profit growth and a hefty dividend payout.

• Operating Revenue: Rs 993.8 cr, up 4.2% QoQ from Rs 953.5 cr in Q3.
• Profit After Tax (PAT): Rs 220.4 cr, up 23.1% QoQ and 27.8% YoY, delivering a PAT margin of 21.1%.
• EBITDA: Rs 244.6 cr, up 10.0% QoQ, with an EBITDA margin of 24.6%.
• Profit Before Tax (PBT): Rs 267.8 cr, up 10.7% QoQ and 20.9% YoY, PBT margin 25.6%.
• Margin expansion: Both EBITDA and PBT margins rose, underscoring strong margin improvement in the quarter.
• Operational highlights:
  • Media & Communications contributed 32.7% of revenue, posting 5.6% QoQ growth in constant currency on new AdTech and US telco wins.
  • Transportation saw a 7.3% QoQ surge in Q3, secured two multi‑year OEM and mobility deals, with OEM business now 77% of segment revenue.
  • Healthcare (Terumo) launched an offshore development centre for cardiac and vascular devices, leveraging AI/GenAI.
  • AI & Digital Engineering rolled out DevStudio.ai and expanded GenAI adoption across design and engineering.
• Dividend: Final dividend of 750% (Rs 75 per share) recommended, pending AGM approval.
• Management Guidance: Management projects continued margin improvement and scaling of AI‑enabled offerings into FY27, targeting larger fixed‑price contracts and deeper client relationships.