Q2 2026 Tata Elxsi Ltd Earnings Call Transcript
Key Points
- Tata Elxsi Ltd (BOM:500408) reported an operating revenue of INR918.1 crores, with a growth of 2.9% in natural currencies and 1% in constant currencies quarter on quarter.
- The US market showed strong quarter-on-quarter growth, increasing by 7.9%, and the Media and Communication business reported a 6.8% sequential growth.
- The Transportation business, which accounts for over 50% of revenues, registered a growth of 0.7% and has a robust pipeline driven by global OEM SDB programs.
- The system integration business recorded a growth of 20.5% over the previous quarter, and Tata Elxsi Ltd received an award from Dell Technologies for Best Infrastructure Solutions Group supplier.
- The company is confident about achieving double-digit growth in the automotive and healthcare sectors in FY27, with a strong foundation for sustainable growth.
- The Healthcare and Life Sciences business reported a decline of 2.3% due to the conclusion of some large regulatory and MDR programs.
- The industry environment remains volatile, with business restructuring and M&A activities affecting leading operators and broadcasters.
- The US automotive market remains muted, with challenges in both new age and legacy OEMs affecting growth.
- Margins have come off over the past two quarters, and the company is working on a slow recovery, aiming to improve utilization rates.
- Attrition levels have increased marginally for the third consecutive quarter, which could impact wage hikes if the trend continues.
Ladies and gentlemen, good day, and welcome to the Tata Elxsi Limited Q2 FY25, '26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Shashank Ganesh from E&Y. Thank you, and over to you, sir.
Thank you. Good evening to all the participants on the call. Good morning if you're logging in from the Western side. Before we proceed to the call, let me remind you that the discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties, and other factors. Therefore, it must be viewed in conjunction with the business risk that could result -- further result performance or achievements that differ significantly from what is expressed or implied by such forward-looking statements.
To take us through the results and answer your questions today, we have the senior management of Tata Elxsi, represented by Mr. Manoj Raghavan, Managing Director and CEO; Mr. Nitin Pai, Chief Marketing and
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