Tata Elxsi Q2 FY27 Results: Profit Flat at ₹170 Crore as Revenue Rises 15% YoY

The Tata Elxsi Q2 FY27 results tell two stories at once. The business grew and margins widened, yet net profit didn’t budge. In audited results filed with NSE and BSE on October 13, 2026, the design and engineering services firm reported revenue from operations of ₹1,055.7 crore for the quarter ended September 30. That’s 3.4% more than the June quarter and 15.0% more than a year ago. Net profit came in at ₹170.3 crore, against ₹170.6 crore in Q1 FY27. The numbers came after market hours, so Wednesday is the first chance to react. Our stock market today India hub has the wider picture.

Tata Elxsi Q2 FY27 results: the key numbers

Here’s what the Q2 FY27 investor presentation shows:

• Revenue from operations: ₹1,055.7 crore, against ₹1,021.1 crore in Q1 FY27 and ₹918.1 crore in Q2 FY26. Constant-currency (CC) growth was 2.3% QoQ and 7.8% YoY.
• EBITDA: ₹231.4 crore, up 7.1% QoQ and 19.7% YoY. EBITDA margin moved up to 21.9% from 21.2% in Q1, a gain of 70 basis points.
• Other income: ₹34.9 crore, lower than ₹41.5 crore in Q1 (-15.8%) and ₹48.9 crore a year ago (-28.6%).
• Profit before tax: ₹239.1 crore, up 2.9% QoQ and 11.4% YoY.
• Net profit (PAT): ₹170.3 crore, down 0.2% QoQ and up 10.0% YoY. PAT margin slipped to 15.6% from 16.1%.
• Basic EPS: ₹27.34 for the quarter, against ₹27.38 in Q1.

Better operations, flat profit: where the gain went

Two lines below the operating level ate up the margin improvement. Other income fell by about ₹6.6 crore from the June quarter. And the results statement shows total tax expense rising to about ₹68.8 crore from about ₹61.9 crore in Q1. So a 7.1% jump in EBITDA shrank to a 2.9% rise in pre-tax profit, and to nothing at the net level. Our explainer on operating profit vs net profit walks through that gap.

The margin gain stands out because the company handed out salary revisions to its entire workforce this quarter. In the company’s press release, CEO and Managing Director Manoj Raghavan put the improvement down to operational efficiencies.

How each vertical did, and the deals it signed

All three main verticals grew sequentially in constant currency:

• Transportation (55.3% of software development and services revenue): +2.0% QoQ and +9.4% YoY in CC. It won a multi-year deal from a leading automotive OEM for a cloud-based telematics and connected-vehicle ecosystem, and announced a tie-up with Sarla Aviation on Shunya, an indigenous electric vertical take-off and landing (eVTOL) aircraft.
• Media and Communications (33.6%): +3.4% QoQ and +10.9% YoY in CC. The win here was a generative AI virtual-assistant deal from a global technology company.
• Healthcare and Life Sciences (9.3%): +3.5% QoQ in CC but still down 14.5% YoY. It picked up a mandate from a global renal-care company to redesign a home dialysis system.

Headcount dropped to 11,149 from 11,336 at the end of June and 11,951 a year earlier, the presentation shows. Attrition stood at 15.9%.

Where the share price stood

CNBC-TV18 reported that Tata Elxsi closed 5.21% higher at ₹3,426.70 on the NSE on Tuesday, before the results came out. Fortune India pointed out that even after that bounce, the stock was down more than 35% over the past year, while the Nifty 500 had lost nearly 5% in the same stretch.

What investors should take from it

Operationally, this was a decent quarter. Growth was broad-based, margins expanded despite wage hikes, and there were deal wins in auto, media and healthcare. We’d still watch two things. The gap between 15.0% rupee revenue growth and 7.8% constant-currency growth means a chunk of the year-on-year gain came from currency, not volume. And healthcare is still smaller than a year ago, while headcount has now fallen for four straight quarters. The real test is whether management’s aim of sustaining growth in the second half shows up as Q3 deal ramp-ups. Our guide on how to analyse quarterly results of a company lists the line items worth tracking, and our earlier Tata Elxsi Q2 results date preview laid out what the market was watching for.