EBITDA dropped by 26% YoY to Rs 186.7 crore in the first quarter. EBITDA margin for Q1 FY26 was 20.9% as against 27.2% in Q1 FY25.

Profit before tax in Q1 FY26 stood at Rs 196.3 crore, down by 22.2% from Rs 252.4 crore in Q1 FY25.

In Q1 FY26, Tata Elxsi won a multi-million USD Design Digital deal with a US headquartered global technology leader for a major data and insights program for next generation AI and product-feature development.

The company was also selected as a strategic partner for medical device testing & certification and regulatory compliance for a cardiovascular portfolio of products.

Manoj Raghavan, CEO and Managing Director, Tata Elxsi, said: “This quarter was challenging across key markets, with macroeconomic uncertainties, industry and customer specific issues impacting R&D spend and decision making cycles across geographies.

The company has demonstrated resiliency in protecting business in our largest vertical, executing on large deal wins across key verticals to create sustained revenue streams, and expanding our relationships with our customers.

We expect steady improvement in bottom-line and margin through the year even as our two largest businesses, transportation and media & communication, return to growth in Q2 FY26 and beyond, and utilization improves on the back of ready capacity and capability we have invested in over the past few quarters.'

Tata Elxsi is amongst the world’s leading providers of design and technology services across industries including automotive, broadcast, communications, healthcare and transportation.