Tata Elxsi Reports Consistent Q2 Growth Across Key Verticals

The company’s growth was broad-based, with consistent gains across its three core segments. The transportation vertical, which remains the company’s largest revenue driver at over 55% of the software development services segment, grew 2.0% in constant currency. This expansion was supported by a new multi-year contract with a major automotive OEM for cloud-based telematics, alongside a collaboration with Sarla Aviation to develop India’s first indigenous eVTOL aircraft.

Media and communications, contributing 33.6% to the segment, saw a 3.4% constant currency growth driven by AI-focused deal wins, including a project for a global technology leader developing a multilingual virtual assistant. Meanwhile, the healthcare division expanded by 3.5% in constant currency, highlighted by a product engineering mandate to redesign a home dialysis system for a global renal care provider.

CEO Manoj Raghavan attributed the performance to operational efficiency, which allowed EBITDA margins to expand by 70 basis points despite company-wide salary adjustments. Moving forward, the firm is deepening its AI strategy through the acquisition of a stake in Silicon Valley-based KAVIA AI. This partnership aims to integrate AI-driven development lifecycles into its engineering services, positioning the company to sustain momentum through the second half of the financial year.