TETata Elxsi500408Earnings call transcript

Q2 FY27 earnings call: revenue INR 1055.7 crores, EBITDA margin 21.9%, H2 seen better than H1

Transcript of the Q2 FY27 earnings conference call shared with the exchanges.

By ScoutQuest · Mon 19 Oct 2026, 2:53 PM IST · 2 min read

Operating Revenue

INR 1055.7 crores, up 2.3% in constant currency

EBITDA

INR 231.4 crores, up 19.7% year-on-year

EBITDA Margin

21.9%, a 70 basis point sequential improvement

Headline numbers

• Operating revenue of INR 1055.7 crores, growing 2.3% in constant currency.
• EBITDA of INR 231.4 crores, growing 19.7% year-on-year.
• EBITDA margin of 21.9%, a 70 basis point improvement over the previous quarter.
• A wage increase was implemented across the workforce during the quarter, and margin still expanded sequentially.

Vertical-wise performance and deal wins

• Transportation grew quarter-on-quarter in constant currency, helped by new deal wins. A notable win is a strategic multi-year deal from a leading automotive OEM for a next-generation, cloud-based telematics and connected vehicle ecosystem.
• Aerospace saw continued traction, described as being on a small base. The company announced a strategic collaboration with Sarla Aviation to support development of Shunya, described as a step towards India's first indigenous electric vertical takeoff and landing (eVTOL) aircraft. It also won an engagement from a global aerospace supplier for a test rig and validation of commercial aircraft systems.
• Media and communication grew 3.4% quarter-on-quarter in constant currency, driven by sustained ramp-ups in key engagements and AI-led deal wins, including a GenAI-powered virtual assistant for a global technology leader.
• Healthcare and life sciences grew 3.5% quarter-on-quarter in constant currency. A notable win was from a global renal care leader for next-generation home dialysis systems, covering user experience, mechanical design, embedded systems and regulatory compliance.

Guidance and outlook from management

• Management said it remains positive on the second half and hopes H2 will be better than H1 in most businesses, with healthcare specifically expected to improve over H1.
• Geographies: US and India did very well, Japan was flattish, and Europe continued to be soft, with automotive revenues predominating in that region. Deal closures in Europe are described as wait and watch.
• Q3 is described as typically a short quarter with fewer working days, and the company is awaiting customer-specific direction on possible furloughs.
• On margins, part of the sequential gain came from cross-currency benefits and the rest from operating leverage as one-off items went away; the wage hike offset a large part of this. Operating leverage is expected to continue playing out.

What a retail investor can track from here

• Whether the growth seen across verticals carries into the second half, especially in media and healthcare where deal ramp-ups contributed.
• The pace of deal closures in Europe, which management flagged as the main area of softness.
• How much of the margin improvement sustains once cross-currency benefits and one-off effects are no longer present.
• The impact of fewer working days and customer-directed furloughs in the third quarter.

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