Tata Elxsi Q3 net profit plunges 45% YoY to ₹108.89 crore

Tata Elxsi, a Tata Group firm that offers design and technology services across industries including Automotive, Broadcast, Communications, Healthcare and Transportation, has on Tuesday (January 13, 2026) reported a 45% decline in third quarter net profit at ₹108.89 crore as against a net profit of ₹199 crore it posted in the same quarter a year ago.

The decline in net profit was primarily due to ‌a one-time charge incurred towards deployment of new labour codes, the firm indicated.

In Q3, it posted revenue of ₹953.47 crore, up 1.5% from the ₹939.17 crore it reported in the corresponding quarter a year ago. Sequentially, its revenues from operations reached ₹953.5 crore, up 3.9%.

Manoj Raghavan, CEO and managing director, Tata Elxsi in his market commentary said, “Media and Communications, and Healthcare and Life Sciences verticals were impacted by seasonal furloughs and some key deal awards that were delayed at the end of the quarter.’’

“I am confident of recovery and growth in both these verticals starting Q4 of the current financial year,’’ he added.

According to him, the growth was led by transportation business, with accelerated ramp-ups in SDV (software driven vehicle) led OEM deals won earlier in the year, and normalisation of workstreams and programmes with a strategic OEM client that was impacted in the previous quarter.

Among regions, Mr. Raghavan said, the company witnessed broad-based growth in Europe and U.S. across key accounts and verticals. 

“In the Healthcare business, our investment in Gen AI-powered regulatory workflows is seeing market success, with a multi-million, multi-year deal award to transform the regulatory workflow processes with a European MedTech leader that delivers significant improvement in cycle time and quality,’’ he explained.

Tata Elxsi also won a large deal for a next-gen drug delivery system for critical illness treatment, also the company has been chosen as the strategic partner by a major European Telco to lead its 3-year network transformation journey towards an autonomous network.

“This platform-led deal with NEURON, Tata Elxsi’s award-winning platform for orchestration and automation across 4G/5G networks, reinforces Tata Elxsi’s next-gen transformation offerings for the telecom industry,’’ Mr. Raghavan claimed.