Tata Elxsi Share Price Rises 5% After Q2 FY27 Results: Revenue, Margins and Profit Explained
Tata Elxsi reported Q2 FY27 operating revenue of ₹1,055.7 crore, up 15% year-on-year and 3.4% quarter-on-quarter, with EBITDA margin expanding to 21.9%, according to the company's press release dated October 13, 2026. Net profit was ₹170.3 crore, up about 10% from a year earlier but flat versus the June quarter. The Tata Elxsi share price closed 5.21% higher at ₹3,426.70 on the NSE that day.
The quarter had a mixed look: strong revenue and margin numbers, but no sequential profit growth. What explains the gap, and how much of the 15% growth is real business growth versus currency?
Key Takeaways
- Operating revenue: ₹1,055.7 crore, +15% YoY, +3.4% QoQ (+2.3% QoQ in constant currency).
- EBITDA: ₹231.4 crore, +7.1% QoQ and +19.7% YoY; margin 21.9%, up 70 basis points QoQ.
- Net profit: ₹170.3 crore, roughly flat QoQ (₹170.6 crore) and up about 10% YoY.
- Constant-currency revenue growth was 7.8% YoY, about half the rupee growth rate.
- Share price: ₹3,426.70 on October 13, still about 42% below its 52-week high.
What Did Tata Elxsi Report for Q2 FY27?
| Metric | Q2 FY27 | QoQ | YoY |
|---|---|---|---|
| Operating revenue | ₹1,055.7 crore | +3.4% | +15.0% |
| Revenue (constant currency) | — | +2.3% | +7.8% |
| EBITDA | ₹231.4 crore | +7.1% | +19.7% |
| EBITDA margin | 21.9% | +70 bps | — |
| Profit before tax | ₹239.1 crore | +2.9% | +11.4% |
| Net profit | ₹170.3 crore | Flat (−0.2%) | About +10% |
Sources: Tata Elxsi press release; Investing.com summary of the earnings presentation; Free Press Journal, October 13, 2026.
For the first half (April–September 2026), revenue from operations rose 15% to ₹2,076.76 crore and net profit rose 14% to ₹340.90 crore, Free Press Journal reported.
What Drove the Quarter?
Growth was broad-based across Tata Elxsi's three main verticals: transportation, media and communications, and healthcare and life sciences. The transportation vertical, which accounts for more than 55% of the software development and services (SDS) segment, grew 2.0% QoQ in constant currency, the company said. Among new wins, it signed a strategic multi-year deal with a leading automotive OEM for a cloud-based telematics and connected-vehicle ecosystem.
The company expanded EBITDA margin by 70 basis points even though it implemented wage increases across its workforce during the quarter, according to Investing.com's summary of the earnings presentation. Delivering margin expansion in a wage-hike quarter is notable, since salary increases usually compress IT services margins.
GoPocket Analysis: How Much of the 15% Growth Came From Currency?
This is the most important number most headlines skip. Revenue grew 15.0% year-on-year in rupees, but only 7.8% in constant currency. Constant currency strips out exchange-rate movements to show underlying business growth.
The difference, roughly 7 percentage points, largely reflects the weaker rupee. With the rupee at about ₹95 per dollar in October 2026, export earnings translate into more rupees. That's real money for the company, but it isn't the same as winning more business, and it can reverse if the rupee strengthens.
Why was profit flat even as EBITDA rose 7.1%? Profit before tax grew only 2.9% sequentially, which points to items below EBITDA, such as other income, depreciation or tax, offsetting the operating gains. Net profit margin works out to about 16.1% (₹170.3 crore ÷ ₹1,055.7 crore, GoPocket calculation).
Where Does the Tata Elxsi Share Price Stand?
| Data point | Value |
|---|---|
| Previous close (October 12, 2026) | ₹3,257.00 |
| Close on October 13, 2026 | ₹3,426.70 (+5.21%) |
| 52-week high | ₹5,950.00 (January 8, 2026) |
| 52-week low | ₹2,996.00 (October 8, 2026) |
| Distance from 52-week high | About −42.4% |
Source: NSE bhavcopy data. Percentages calculated by GoPocket. IT stocks broadly rallied on October 13.
The stock had hit its 52-week low just three sessions before the results. A 5% one-day rise from such levels can reflect relief as much as new optimism.
Track the live price on the Tata Elxsi stock page, and compare it with Tata Technologies and HCL Technologies. For HCLTech's quarter, read our HCL Tech Q2 FY27 results analysis.
What Are the Risks?
- Currency dependence. A stronger rupee would reduce reported growth.
- Automotive exposure. Transportation is the largest vertical; slower spending by global carmakers would hit growth.
- Profit conversion. Operating gains did not reach the bottom line this quarter.
- Valuation and sentiment. The stock is far below its January high, showing how quickly expectations have changed.
What Should Investors Watch Next?
- Constant-currency growth in Q3 FY27, the cleanest measure of demand.
- Ramp-up of the new automotive telematics deal.
- Whether the second half improves on the first, including in healthcare and life sciences.
- Margin trend after the full impact of salary revisions.
Sources
- Tata Elxsi, Tata Elxsi delivers healthy revenue growth of 3.4% QoQ and 15% YoY in Q2 FY'27, October 13, 2026
- Investing.com, Tata Elxsi Q2 FY27 slides: margins expand despite wage hikes, October 13, 2026
- Free Press Journal, Tata Elxsi Q2 FY27 Results: Net Profit Rises 10% To ₹170.30 Crore, October 13, 2026
- NSE bhavcopy closing prices and 52-week data, October 13, 2026
Disclaimer: This article is for information and educational purposes only and is not investment advice or a recommendation to buy, sell or hold any security. Past performance does not guarantee future returns. Consult a SEBI-registered investment adviser before investing.
