Tata Elxsi’s Transportation business grew 13.3% year-on-year (YoY) in the first quarter of fiscal year 2026-27, with OEM revenues now representing 78% of automotive revenues as the company deepens its software and design work with vehicle manufacturers. Overall group revenue reached INR10.2bn (US$112.3m), up 14.5% YoY and crossing INR10bn for the first time.

Profit after tax grew 18.2% YoY to INR1.71bn (US$18.8m), with operating margin at 21.2%. Profit before tax margin was 21.9%.

The Transportation segment’s growth was driven by accelerated OEM engagements and strategic wins in off-road and aerospace, as the company expands its capabilities to support OEMs pivoting to connected, multi-powertrain and AI-powered vehicles. Group revenue grew 2.8% quarter-on-quarter, reflecting continued momentum in key engagements.

The quarter also saw Tata Elxsi partner with JSW Motors to establish JNEXT, a hub for software-defined, AI-powered mobility development in India’s new-energy vehicle sector. The partnership reflects growing demand from domestic OEMs for specialist technology partners as they build out software-defined vehicle roadmaps.

Tata Elxsi is investing in AI-powered tools and specialist talent under a ‘Domain + AI’ approach to support OEMs’ transition to software-defined vehicles. The company confirmed its focus on deepening automotive engagements and pursuing long-term deals while strengthening margins.

Source: Tata Elxsi