1. Opening Hook
January 2026 began with auto OEMs suddenly remembering they still need engineers.
After two quarters of “temporary softness,” Tata Elxsi’s transportation business decided to ghost the slowdown narrative.
Margins jumped, utilisation smiled, and management sounded like they’d finally deleted the “macro headwinds” slide.
Healthcare stopped falling, Media found a torch at the tunnel’s end, and SDV buzzwords were deployed responsibly.
The anchor client didn’t blow up.
Japan didn’t disappoint.
Europe behaved.
Most importantly, no one said “this quarter is an anomaly.”
Read on—because beneath the calm confidence lies a very specific bet on AI, SDV, and sweating assets harder 😏
2. At a Glance
- Revenue +3.2% QoQ (CC) – Slow clap, but at least it’s real growth.
- Transportation +7.7% QoQ – Auto OEMs remembered Tata Elxsi exists.
- EBITDA margin 23.3% (+220 bps) – Utilisation finally went to the gym.
- PBT margin 24.2% (+200 bps) – Minus one labour-law surprise guest.
- Media -0.3% QoQ – December furloughs doing December things.
- Healthcare bottomed out – Management swears the floor is behind us.
3. Management’s Key Commentary (Decoded)
“Growth was largely volume-led, resulting in better utilisation.”
(Bench is shrinking, finally doing billable yoga) 😏
“Transportation now contributes over 55% of revenue.”
(Yes, we are basically an auto engineering company now)
“SDV-led OEM deal ramp-ups
drove growth.”
(Software-defined vehicles are paying actual invoices)
“Media saw seasonal furloughs and deal delays.”
(December ate the margins, as usual)
“Healthcare has bottomed out.”
(We promise it can’t get worse)
“GenAI-powered regulatory workflows saw multi-year wins.”
(AI is no longer a slide, it’s a line item)
“We can move utilisation towards 85%.”
(We discovered AI + discipline = more sweat per head) 😏
“Large-scale hiring is still a couple of quarters away.”
(No campus buses just yet)
4. Numbers Decoded
| Metric | Q3 FY26 | What It Really Means |
|---|---|---|
| Revenue Growth | +3.2% QoQ | Not explosive, but finally consistent |
| Transportation | +7.7% QoQ | OEMs reopened wallets |
| EBITDA Margin | 23.3% | Utilisation doing heavy lifting |
| Margin Expansion | +220 bps | Cost discipline > pricing drama |
| Utilisation | ~75% | Management eyeing 80–85% sweet spot |
| Wage Hike Impact | -110 bps | Juniors got paid, margins survived |
One-liner: Margins expanded not by magic—just by sweating fixed costs harder.
5. Analyst Questions (Decoded)
- Q: Is auto growth sustainable?
A: Yes, ramp-ups + adjacencies,
