Tata Elxsi, a global leader in design-led technology services, has announced robust second-quarter results for the fiscal year 2024-25. The company reported a steady 3.1% quarter-on-quarter (QoQ) growth in operating revenue, reaching Rs. 955.1 crores. This performance was driven by continued strength in the transportation sector, which experienced a remarkable 8.8% QoQ surge.
Tata Elxsi’s strong financial performance is a testament to its focus on operational excellence, fiscal discipline, and differentiated offerings. The company’s EBITDA margins expanded by 70 basis points to 27.9% for the quarter. Profit Before Tax (PBT) also saw a significant jump of 18.3% QoQ to Rs. 298.7 crores, while Profit After Tax (PAT) surged by 24.6% QoQ to Rs. 229.4 crores.
The transportation sector continues to be a major growth driver for Tata Elxsi, benefiting from the company’s deep expertise in Advanced Driver-Assistance Systems (ADAS), connected vehicles, electric vehicles, and Software Defined Vehicles (SDV). This expertise has allowed Tata Elxsi to secure significant deals with global Original Equipment Manufacturers (OEMs) across the world, positioning the company well for the ongoing transformation of the automotive industry.
One notable achievement in the quarter was the securing of a landmark US$ 50 million multi-year deal from a leading European OEM. This engagement will involve SDV platform development and the development of next-generation mobility solutions for the OEM.
Tata Elxsi’s strategic expansion into Japan, emerging markets, and the Indian market is also yielding positive results. Revenue from India witnessed a strong year-on-year (YoY) growth of 31.2%, while Japan and emerging markets saw an impressive 81.9% YoY growth.
In addition to the transportation sector, Tata Elxsi continues to make strides in other key verticals. The company’s Media & Communication business, while experiencing a marginal 1% QoQ decline, shows signs of growth driven by network transformation offerings and digital and AI-driven innovation. The Healthcare & Lifesciences business, however, saw a 10.4% QoQ decline, attributed to delays in renewal and the commencement of new programs with a major US-based customer. Despite this, Tata Elxsi is optimistic about the future growth of this vertical, having added new customers including a global renal care leader and a US-based healthtech AI leader.
Tata Elxsi’s CEO and Managing Director, Mr. Manoj Raghavan, expressed satisfaction with the company’s performance, highlighting the strong deal pipeline, the growth of the transportation business, and the anticipated recovery in other key verticals. He emphasized the company’s unique positioning with its design-digital capabilities and deep domain and software expertise, which enables Tata Elxsi to effectively address the evolving needs of its global customer base.
Tata Elxsi is well-positioned to leverage the convergence of design, software, and digital technologies like AI to help businesses reimagine their products, services, and customer experiences. The company remains committed to delivering innovative solutions and driving growth across its key verticals, ensuring its continued success in the global technology landscape.
