Tata Elxsi

“we do see a slightly upward margin trajectory that should be playing out in rest of the year.”

“I would say, 2 to 3 quarters, we will see that gradual improvement in our margins, right? We don't want to give a number at this point in time”

“We expect 2H to be better than 1H, it would imply that our revenues would be higher even on a Y-o-Y basis in H2.”

“We also won a strategic engagement from a global aerospace supplier for development of a test rig and validation of commercial aircraft systems.”

“During the quarter, Tata Elxsi secured a strategic AI engagement with a global technology leader to develop a GenAI-powered virtual assistant focused on multilingual intelligence”

“One of the notable deals in the quarter was a win from a global renal care leader to develop its next-generation home dialysis systems”

“No, the deal has not, it's just started. It's not fully ramped up yet.”

“Usually the deal ramp-up takes a couple of quarters, three quarters or so, to reach the full level.”

“The transportation vertical reported a quarter-on-quarter growth of 2% in constant currency terms, aided by new deal wins.”

“Our media and communication vertical registered a quarter-on-quarter growth of 3.4% in constant currency. This growth was driven by sustained ramp-ups across key engagements and AI-led deal wins.”

“Our healthcare and life sciences vertical too recorded a healthy growth of 3.5% quarter-on- quarter in constant currency terms.”

“Japan has been flattish, but we are hoping that that will continue to grow.”

“From a healthcare and life sciences perspective, I think we bottomed out last quarter and finally we are able to show growth.”

“In terms of regions, US and India did very well for us, while Europe was soft with the predominance of automotive revenues from that region.”

“Europe continues to be soft. There are large deals and opportunities, but again with deal closures it's a wait and watch.”

“I think in general; I think we have seen an improvement on that position from a year back.”

“I think enterprises are committing AI budgets meant for enterprise transformation, not necessarily only for R&D, right? And to that extent, that does take away from what could otherwise be discretionary budgets.”

“So, on one hand, it does continue, it does have an impact, but I think it is starting to become a little more thoughtful and a little more ROI-based.”

“Our EBITDA margin for the quarter was 21.9%, a 70 basis point improvement over the previous quarter.”

“Our continued focus on delivery excellence enabled us to expand EBITDA margin by 70 basis points sequentially despite the impact of the annual wage revision.”

“On the margins, just to give you a quick sense of where the growth came from, about 60 bps to 70 bps was the cross-currency benefits that we had in the quarter.”

“The balance, 10 bps to 20 bps is basically operational leverage that has played out, as well as a lot of the one-timers which were there, most of them have gone away.”

“Over the next half year, we have to focus on our pyramid management.”

“I'm pleased to share with you the strategic collaboration with Sarla Aviation to support the development of Shunya, a pioneering step towards India's first indigenous electric vertical takeoff and landing, eVTOL, aircraft.”

“So from a margin perspective, right, so in Q2, just to clarify, there was no sort of one-time cost.”

“Having said that, Q3 is typically a short quarter with fewer working days. While we await customer-specific direction on possible furloughs, we remain focused on sustaining growth in the second half”

“I think the talent that we have and the areas that we are focusing on, there is a huge demand with the GCCs continuing to set up shops and ramping up resources. Especially in the ER&D space, we need to work hard to retain our talent.”

“Unfortunately, because of the situation with the OEMs there, especially the big OEMs, we are seeing a delay in decision-making. We are there in the final shortlist in many of the deals there.”

“And we know JLR is going through its own challenges in terms of their own business performance and layoffs and so on. So we are watching that pretty closely and we will get to know about it, maybe across H2.”

“So those deals, runoffs have also happened. So that's why we are still cautious about Europe.”

“In the second quarter of financial year '27, we reported an operating revenue of INR 1055.7 crores, growing 2.3% in constant currency.”

“We reported an EBITDA of INR 231.4 crores, growing 7.1% quarter-on-quarter and 19.7% year-on-year.”