{"id":181641,"date":"2026-04-21T13:00:20","date_gmt":"2026-04-21T17:00:20","guid":{"rendered":"https:\/\/alphastreet.com\/india\/tata-elxsi-ltd-tataelxsi-q3-2026-earnings-call-transcript\/"},"modified":"2026-04-21T13:00:20","modified_gmt":"2026-04-21T17:00:20","slug":"tata-elxsi-ltd-tataelxsi-q3-2026-earnings-call-transcript","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/tata-elxsi-ltd-tataelxsi-q3-2026-earnings-call-transcript\/","title":{"rendered":"Tata Elxsi Ltd (TATAELXSI) Q3 2026 Earnings Call Transcript"},"content":{"rendered":"

Note:<\/strong> This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.<\/em><\/p>\n

Tata Elxsi Ltd (NSE: TATAELXSI) Q3 2026 Earnings Call dated Jan. 13, 2026<\/span><\/strong><\/p>\n

Corporate Participants:<\/h2>\n

Manoj Raghavan<\/strong> \u2014 Managing Director and Chief Executive Officer<\/em><\/p>\n

Gaurav Bajaj<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

Nitin Pai<\/strong> \u2014 Chief Marketing and Chief Strategy Officer<\/em><\/p>\n

Analysts:<\/h2>\n

Shashank Ganesh<\/strong> \u2014 Analyst<\/em><\/p>\n

Bhavik Mehta<\/strong> \u2014 Analyst<\/em><\/p>\n

Jalaj<\/strong> \u2014 Analyst<\/em><\/p>\n

Debashish Mazumdar<\/strong> \u2014 Analyst<\/em><\/p>\n

Vimal Jamadas Gohil<\/strong> \u2014 Analyst<\/em><\/p>\n

Amit Chandra<\/strong> \u2014 Analyst<\/em><\/p>\n

Ankur Pant<\/strong> \u2014 Analyst<\/em><\/p>\n

Abhishek Chandatkar<\/strong> \u2014 Analyst<\/em><\/p>\n

Rohit Jain<\/strong> \u2014 Analyst<\/em><\/p>\n

Karan Uppal<\/strong> \u2014 Analyst<\/em><\/p>\n

Sukriti Patil<\/strong> \u2014 Analyst<\/em><\/p>\n

Sajal Kapoor<\/strong> \u2014 Analyst<\/em><\/p>\n

Rishi Modi<\/strong> \u2014 Analyst<\/em><\/p>\n

Sulabh Govila<\/strong> \u2014 Analyst<\/em><\/p>\n

Presentation:<\/h2>\n

Operator<\/strong><\/p>\n

Ladies and gentlemen, good day and welcome to the Tata LXE Limited Q3 FY25 26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing STAR and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Shashank Ganesh from E and Y.<\/p>\n

Thank you. And over to you sir.<\/p>\n

Shashank Ganesh<\/strong> \u2014 Analyst<\/em><\/p>\n

Thank you Darwin. Good evening to all the participants on the call. Good morning. If you are 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 cause further result, performance or achievements that differ significantly from what is expressed or implied by such statements.<\/p>\n

To take us through the results and answer your questions today, we have the senior management of Tata LXE represented by Mr. Manoj Agavan, Managing Director and CEO Mr. Nitin Pai, Chief Marketing and Chief Strategy Officer, Mr. Gauravida, Chief Financial Officer and Ms. Nehavi, Company Secretary. We will start the call with a brief overview of the past quarter by Mr. Raghavan followed by a Q and A session. We would appreciate your cooperation restricting yourself two questions to allow participants an opportunity to interact.<\/p>\n

If you have any further questions, you may join the queue and we will be happy to respond to them as time comes. With that, I would like to hand over the call to you Sir. Manoj Chagam. Over to you, Manoj.<\/p>\n

Manoj Raghavan<\/strong> \u2014 Managing Director and Chief Executive Officer<\/em><\/p>\n

Thank you Shashank. A very good evening to all of you joining today for the Q3.26 investor call.@ the outset, let me wish you all a healthy, happy and Prosperous New Year 2026. I’m happy to share with you that in the third quarter of FY26 Tatalaxi delivered a healthy performance, growing 3.2% on a constant currency basis over the previous quarter. This was largely volume led resulting in better utilization and operating margins. Our transportation business, which now accounts for more than 55% of our overall revenue, grew 7.7% quarter on quarter.<\/p>\n

This growth was led by accelerated ramp ups in SDV led OEM deals one earlier in the year and also normalization of work streams and programs with a strategic OEM client that was impacted in the previous quarter. Our media and communication business registered a marginal decline of 0.3% quarter on quarter. This is largely due to some seasonal furloughs in the last one to two weeks of December and delays in. Some deal awards and. Paperwork. We have continued ramp ups and a strong foundation with the large deals we won in the year for this business traction with our renewed offerings and a healthy deal pipeline.<\/p>\n

Our healthcare and life sciences business has bottomed out in the quarter with the runoff from the end of some large regulatory programs. Our investments in future powered Genai powered regulatory workflows is seeing market success with multimillion multi year deals deal wins during the quarter. We’ve also seen strong new customer addition throughout the quarter and year and we’re confident of bringing back growth in this business starting Q4FY26. During this quarter we performed well in key geographies of the US and Europe with broad based growth across key accounts and verticals.<\/p>\n

While India did see impact largely from business from automotive suppliers. Our EBITDA margin improved by 220 basis points to 23.3% in the quarter backed by operational excellence and improved utilization in line with business growth. Our PBT improved 200 basis points to 24.2%. This excludes a one time exceptional item due to the new labor code. Overall, I’m pleased with the performance and resilience in revenue margins and customer additions throughout the quarter. We are entering the last quarter of the financial year with a commitment for growth and confidence in our design, LED and AI enabled engineering capabilities.<\/p>\n

Thank you and over to you Shashank for the. Questions.<\/p>\n

Operator<\/strong><\/p>\n

Thank you very much sir. We will now begin with a question and answer session. Anyone who wishes to ask a question may press STAR and one on their Touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested so please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question is from the line of Bhavik Mehta from JP Morgan. Please go. Ahead.<\/p>\n

Questions and Answers:<\/h2>\n

Bhavik Mehta<\/strong><\/p>\n

Hi. Thank you. A couple of questions. Firstly on the auto vertical, obviously the growth was very strong this time mainly because of ramp up of the previous event. But how should we think about the momentum that’s changing going forward based on the pipeline you see currently and the conversations we are having with the OEM. Client.<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Yeah. So Bhavik. Yeah, thanks. I think we’ve been working really hard on building the momentum in the automotive industry. So the good part is, yes, a lot of things came together this quarter and we were able to show the strong growth. It’s not Just automotive customers, automotive OEMs. We have been able to leverage on the large deals that we have won and really accelerate some of the deployments. At the same time, we’ve also really opened up some off road and adjacency businesses for us that has also helped us in the quarter.<\/p>\n

So I think we definitely expect steady growth moving forward and we’re really looking to see an accelerated momentum in the next financial year for the transportation business for us. I think we have, we are working hard and we’re pretty confident that look, we will be able to have sustainable growth for us in the coming financial. Year.<\/p>\n

Bhavik Mehta<\/strong><\/p>\n

Okay, got it. That helpful? Secondly, just on the margins, Gaurav, can you just highlight what are the utilization levels we’re operating at right now and where this can go in growth momentum sustained in auto as well? You know, just trying to understand where can the margins go back to in the next few quarters?<\/p>\n

Gaurav Bajaj<\/strong><\/p>\n

Sure. Bhavik. Hi. I think on this quarter, you know, we got a 35 basis point kind of, you know, benefit from the exchange. I think our operating leverage has been improving, you know, including the utilization that we have been speaking in the last few quarters that, you know, once the revenue start to go, demand comes back, you know, the utilization will start to improve because we have the installed capacity which we don’t need to augment further.<\/p>\n

Jalaj<\/strong><\/p>\n

So<\/p>\n

Gaurav Bajaj<\/strong><\/p>\n

That is coming into the play and you know, helping us in our bottom line. We get almost got 200 basis point kind of uplift from the, you know, operating leverage, including utilization point and other expenses. Also continues to be cautious kind of cost discipline, you know, behavior that we are driving within the organization leading to another 80, 85 basis point kind of, you know, margin upliftment. If you add all the positives, it comes to almost 20 basis point. And with that we also have a, you know, wage hike done for our junior domain staff, you know, during the quarter, which has a impact, compensating impact of 110 basis point, which makes, you know, almost 200 to 210 basis point of a positive movement in the bottom line.<\/p>\n

Having said that, I think we continue to drive the operating model in terms of how we used to do it in the past. We believe there is still scope and Runway to improve our utilization further as we see the demand coming back in the subsequent quarter.<\/p>\n

Jalaj<\/strong><\/p>\n

Hopefully.<\/p>\n

Gaurav Bajaj<\/strong><\/p>\n

I think I cannot comment in the short to midterm, but we are very positive that we can go back to the margins that we used to operate at because maybe by the exit of the next year. But I think everything seems to Be positive. We are confident that we will be able to move back to that trajectory where Tata Alexey used to. Operate.<\/p>\n

Jalaj<\/strong><\/p>\n

Okay, thank. You.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Debashish Mazumdar from Swan Investments. Please go. Ahead.<\/p>\n

Debashish Mazumdar<\/strong><\/p>\n

Hi, good evening to the management team and very good quarter. Congrats on that. So I have a question on the transportation vertical. The 7.3% kind of growth that we are seeing quarter on quarter. Can we get a qualitative breakup that how much is because of the inter customer coming back and how much is because of the growth in the other customer and what kind of growth you are seeing from the ramp up of the recently one. Deals?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Yes, so you know, there are multiple factors as I discussed in the earlier question. Right. Of course it is, you know, the ramp ups of the, you know, large deals that we have won. Of course, you know, as we reported in the last quarter, you know, we had one of our customers had an issue and in this quarter, you know, we had some accelerated, you know, ramp up of the deals that really were put off from the previous quarter. Right. That actually has also helped us. And apart from that we have, you know, growth from our adjacency business.<\/p>\n

So I would say all three of that put together has really helped us to show this, you know, you know, good growth for the automotive sector. And I think yeah, and that’s, that’s the confidence that we have that look moving forward and moving to the next financial year. We believe we are on the right trajectory and you know, we should be able to leverage the capabilities that we have built, the teams that we have built, the sort of investments we have made in our platforms and products. I think all of this gives us the confidence that look, automotive should really help us accelerate our growth rate in the next financial.<\/p>\n

Year.<\/p>\n

Debashish Mazumdar<\/strong><\/p>\n

Nitin, if I just a follow up, if I just connect your transportation growth and Europe growth and top five customer growth, it seems to be a large part of the delta in this quarter. On quarter, 7.3% growth is driven by the anchor customer. So is my understanding correct or it is equally distributed between the three segments that you have just. Explained?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Yeah, if you look at the top five or the top 10 accounts and so on. What we have also been seeing is that we have seen a lot more automotive customers come into that band. Right. Especially because of some of the large deals that we have won and how we have been, you know, accelerating. So yes, I think it’s a combination of, you know, multiple of these large wins that are really accelerating Our top five and top ten customer. Base.<\/p>\n

Debashish Mazumdar<\/strong><\/p>\n

Okay. And why o wide the transportation vertical is still not back to the previous levels. So is my anchor back to my the pre the earlier trajectory or it is still like one or two quarter. Away?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Sorry, what was the second part of your. Question?<\/p>\n

Debashish Mazumdar<\/strong><\/p>\n

So my anchor customer is back to the previous run rate or it is still one or two quarter. Away.<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

You know, we are still not up to the previous, you know, run rate. So still as you rightly said, we have maybe a quarter or so more catch up to happen. Quarter or two as you rightly said. So I think that is also something that we are working on and how we can accelerate that. Part.<\/p>\n

Debashish Mazumdar<\/strong><\/p>\n

Sure, sure. One last question if I may. If you see the geographical performance between Europe and rest of the world, it seems to be the two new OEMs that you have won, one out of Europe and one out of Japan. The Europe customer has kind of fired up. The Japan customer is still not fired up. Is my understanding correct. And if you, if that is the case, if you can give me some trigger three of these two new volumes that you have won. Recently.<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

So you’re. Right. I think the European customers we have been able to ramp up the Japan customers, actually we have ramped up the previous quarter. So it’s not as if that customer has not ramped up. We’ve already ramped up and I think we are at a phase of consolidation and we will eventually moving forward. There will be additional activities that we will get involved in. So we can’t look at it from a 1\/4. Perspective.<\/p>\n

Debashish Mazumdar<\/strong><\/p>\n

Sure, sure. Understood. Thank you very much for answering my. Questions.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. The next question is from the line of Vimal Jamnadas Gohil from Alchemy Capital Management Private Limited. Please go. Ahead.<\/p>\n

Vimal Jamadas Gohil<\/strong><\/p>\n

Yeah, thank you for the opportunity and a team, great comeback especially in the automotive. Vertical. We just wanted to get a sensor. On. You mentioned a lot of factors. That have contributed to the. Survival. What’s the sense on macros? Are we seeing headwinds or has the performance being up to the mark despite the headwinds still being what they were in the past year that we’ve. Seen?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Yeah. So I think at a very, very high level, macro level, headwinds are still there. Right. From an industry perspective. But the good part is look, our value proposition stands out very strongly and that gives especially customers in Europe and US and Japan to really look at. Hey, Tatalaxy provides the best value from best cost, country location and proven offshoring capabilities and ability to execute large complex programs and so on. So I think all of that is really helping us, you know, navigate, you know, times are still tough right out there in these markets, but I think that gives us the confidence and our customers the confidence that look, this.<\/p>\n

Is the right step to take.<\/p>\n

Vimal Jamadas Gohil<\/strong><\/p>\n

Understood. And Sir Manoj, on healthcare and median comps,<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

How<\/p>\n

Vimal Jamadas Gohil<\/strong><\/p>\n

Should we look at. These two verticals going. Forward? Your commentary suggests that growth might be on its way starting Q4. Q1, should we look at a. Similar trajectory, what transportation is delivered or. Will it still take some. Time?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

No. So we are working really hard on it. Right. So 50% of our business is now in a decently good shape. Right. And the remaining 50% is something we are hoping that will come in good shape in a quarter or two, right? Definitely the media and communication business, some of the large deals have actually ramped up. We are in the process of bidding a couple of large deals and outcomes will be happening, will come out pretty soon in this quarter. So I’m pretty confident that look, Q4 we should see some positive signs in our media business.<\/p>\n

And it’s been a long, long journey, a lot of hard work the teams have put in. There is some light at the end of tunnel, I will say and hopefully Q4 we’ll be able to show some good performance in the media and communications space as well. Healthcare, again, healthcare is something that we’re really, really working hard and I think we’re bottomed out in this business in Q3 and hopefully the turnaround will again happen from Q4 onwards. Definitely from a next financial year perspective we are definitely focusing on both of these business also to accelerate.<\/p>\n

Right. So that’s what we are working on and I think we have a good clear oversight of clear line of sight of where both of these businesses are heading to. And I think I’m pretty optimistic at least in the midterm that we will be able to turn around both of these. Businesses.<\/p>\n

Vimal Jamadas Gohil<\/strong><\/p>\n

Great to hear. That. Mohij. Just one question on hiring. So how do we look at. So in this particular quarter, Gaurav, if. You can just quantify or maybe give a qualitative comment on how much of margin improvement or has happened because of the headcount rationalization that we’ve seen and given the fact that we are now seeing growth ramping up, do we see hiring coming back into positive trajectory and will that offset some of the gains that we’ve seen in terms of margin. Gains?<\/p>\n

Gaurav Bajaj<\/strong><\/p>\n

Yes. So Viman, I think I answered that in the previous question asked by Bhavik. I think this quarter we have an operating leverage of about 200 basis points into our bottom line. And we still have little bit more scope to improve our utilization from here on. And I think the future model itself should not be look revenue tagged to the headcount. That should not be the proportionate or the linear way of looking the reven headcount. I think that model is undergoing a change and we are very cautious and we are looking in terms of the productivity of whole, you know, including the AI kind of a productivity into our business models.<\/p>\n

So I think that we’ll continue to work on those models and you know, giving when the headcount will increase. I think we will take, you know, approach where we need the people, the specific skill set are required, niche expertise are required. We will very calibrated hiring we will do from here onwards and depending upon the demand, we will see how many people have to be brought in. But I think going forward our methodology would be to calibrate the demand, the supply and then what would be the most optimal model to continue to deliver on almost towards 80%.<\/p>\n

Utilization.<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Yeah, so just to add there, I think we still have leverage from improving our utilization. So I think it’s a quarter or two away before we really, I mean of course we’ll start thinking of hiring and so on and we would do it in low numbers especially to meet certain specific customer requirements and so on. But large hiring I think is still either a quarter or a couple of quarters away and we would want to leverage on improving our utilization in the short term. So that’s where our focus. Is.<\/p>\n

Vimal Jamadas Gohil<\/strong><\/p>\n

Perfect. Gentlemen, congratulations once again and best wishes for the quarter. Structure.<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Thank. You.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Amit Chandra from HDFC Securities. Please go. Ahead.<\/p>\n

Amit Chandra<\/strong><\/p>\n

Yes. Sir. Thanks for the opportunity. So my question is on the transportation vertical, obviously we have seen very healthy recovery, but in this recovery, all the deals that we have won has been fully ramped up or we can see more ramp up in the coming quarters. And also in terms of the of the top OEMs in the Europe and the US region, how you’re seeing these spending patterns in terms of, in terms of recovery, in terms of debt discretionary spends and in terms of decision making and if you can provide some color on that, how this has changed, maybe a.<\/p>\n

Quarterback.<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Yeah, I think some of the large deals that we’ve been talking of, I think we have had significant ramp ups happening towards maybe the later part of last quarter and you know, and of course in Q3, so those ramp ups are sort of, you know, We’ve, what do you say? I won’t say peaking, but you know, we have reached a steady state and so on. Of course there is still, you know, opportunity to grow further again depending on some new opportunities that we’re talking to our customers and so on. But I think we’ve managed to really, really match the customer expectation in terms of ramp ups to meet their specific needs and so on.<\/p>\n

Having said that, as I said, there are a few adjacency businesses, off road businesses and so on that we have entered recently and that is an opportunity once again to scale and so on in the coming quarters. Right. So, so, so yes, it’s, it’s a work in progress in some sense, but I think a good part of the ramp ups have been baked in, you know, in this quarter. Last quarter. Sorry.<\/p>\n

Amit Chandra<\/strong><\/p>\n

Okay. And in terms of the OEM commentaries and the, you know, spend spends in these specific areas and in terms of the like, decision making and how we’re seeing, you know, in this quarter versus what it has been six months. Back.<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Yeah, see, decision making time, I would say a little bit slow. Right. It is, I mean, of course customers are making decisions and so on, but they are making very careful, calculated decisions. Right. So to that extent, I think it all depends on the value proportion and what you stand for. Right. What sort of, you know, you know, what do you say, problems at the customer end are you going to address based on your business model? Right. So that’s the key and that’s something that we have been sharpening over the few quarters.<\/p>\n

Right. And I think we have a very, very good value proposition for our customers. Yes, decision making will still take some time, but customers are definitely willing to spend based on the value proportion that we are putting on the. Table.<\/p>\n

Amit Chandra<\/strong><\/p>\n

Okay. And so in terms of the operating leverage, obviously we have seen some good operating leverage coming out in this quarter, but now if you just because we have in last year when we saw, when we saw a decline, we have like maintained the capacity, but till what level of growth we have funded in terms of capacity and we don’t need to add, if you can give some color on that. So what is the kind. Of. I think there was that<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Question in the previous question as well. Right. So we are operating at around 75% today and you know, we can go all the way up to 85%. Right. So we are targeting to look at at least, you know, moving around to 80% right. Before we start, you know, adding capacity and so on. So, so I think we do have, still, we do have Operating leverage from, from in a bench. Perspective.<\/p>\n

Gaurav Bajaj<\/strong><\/p>\n

And it is not that we are not hiring at the moment, we are hiring, but I think we are hiring selectively where we have those, you know, positions required to be fulfilled. But as we mentioned, the large scale hiring probably can be, I mean can seen after maybe couple of quarters from. Now.<\/p>\n

Amit Chandra<\/strong><\/p>\n

Okay, so thank you and all the. Best.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. The next question is from the line of Ankur Pant from iifl. Please go. Ahead.<\/p>\n

Ankur Pant<\/strong><\/p>\n

Hi. Am I. Audible?<\/p>\n

Operator<\/strong><\/p>\n

You are audible, so you may. Proceed.<\/p>\n

Ankur Pant<\/strong><\/p>\n

Yeah, thank you for taking my questions. Congratulations on a good set of results. My first question is on the transportation vertical. So would you put down this performance mostly, which was mostly because of an anticipated ramp up that we were expecting from one H itself, or would you also attribute it to some extent to an improvement in the demand environment? Do you see that? And in a similar vein now, having registered a strong growth in 3Q, it sets up a high base as we head into 4Q. Would we be able to see this kind?<\/p>\n

Not this kind, but would we be able to see growth on this number? How do you look at. It?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

I didn’t get the first question clearly, but okay. From a second question perspective. Yes, of course. You know, I think, you know, based on the, based on the order book that we see and based on the sort of funnel that we’re looking at. Right. I’m pretty confident that look, you know, we will be able to, you know, grow over, you know, the numbers that we have delivered. Right. So that’s of course what the teams are focusing on. What was the first question about? Was it demand. Environment?<\/p>\n

Ankur Pant<\/strong><\/p>\n

Yeah, my question was that the growth was primarily driven by the ramp ups that you were already anticipating or did you also see an easing in the demand environment? To some. Extent?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

It’s both. Right. I think we were able to successfully ramp up some of the deals that we have closed. And, and that was really, you know, and also, you know, you know, we pulled down, you know, as, you know. Right. We had an issue in one of our customers and that really, you know, there were a lot of pent up demand which we really pulled in this quarter in the last quarter. Right. And that also helped us to really accelerate in the quarter and regarding new demand and so on. Yes, of course, you know, there are deals that we have won and you know, we’ve talked about especially in the adjacency space that we’re looking at.<\/p>\n

So those are all new deals that will add revenue streams again in the subsequent. Quarters.<\/p>\n

Ankur Pant<\/strong><\/p>\n

Sure, thank you. And my other question is on utilization. Now. It’s an important margin lever going forward. But given that we work in three different verticals with, I mean not a lot of fungibility between employees, you ideally would need even the media and communication growth to pick up before you can actually move utilization to north of 80%. So is it possible to move it upwards to 80, 85% without a proper recovery in the media and communication. Vertical?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

That’s what we talked about, right? We are hoping that both media and communication and healthcare which contributes whatever, 45, 50% of our revenues. Right. That is something that we are very confident that we should be able to recover. And we have been working over the past few quarters, I would say in terms of new customer outreaches and some large opportunities that we have placed our bids and we strongly believe that look, some of that will turn around in this quarter in Q4 and that will also help us accelerate or I would say improve our utilization.<\/p>\n

So it’s not just only automotive business, it is both media and communication and healthcare which is going to help us achieve a better utilization. So. Definitely.<\/p>\n

Ankur Pant<\/strong><\/p>\n

And my final question is in one Q, you had guided for, not guided for, but you had and aspirations of a double digit growth in both transportation and healthcare vertical heading into FY27. Does that remain intact and for the overall. Organization?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Yeah. So that is the aspiration from our next financial year perspective, if I understood your question right. So that is what our internal planning and that’s what we are aiming for. And we believe that, look, if we can get a strong momentum in, in Q4, right. And leading into quarter one of next year, I think we should be able to achieve those. Objectives.<\/p>\n

Ankur Pant<\/strong><\/p>\n

Thank you. Perfect. All the. Best.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Abhishek Chandatkar from Incred Capital. Please go ahead. Abhishek Shindhatkar, your line has been. Unmuted. Yeah, hi, can you<\/p>\n

Abhishek Chandatkar<\/strong><\/p>\n

Hear. Me? You are audible, sir.<\/p>\n

Operator<\/strong><\/p>\n

Yes.<\/p>\n

Abhishek Chandatkar<\/strong><\/p>\n

Yeah, thank you. Thanks for the opportunity and congratulations on a great quarter. The first question is on the media business. If I heard you correctly, did you mention that you know, part of 50% of the business has recovered and you’re hoping for the recovery in the balance? Is that comment related to one of the larger accounts? And if yes, you know, any, any status in terms of, you know, bottoming out of challenges in that account? That’s first and second to Gaurav. Sir, you mentioned the VTAC impact for juniors in this quarter.<\/p>\n

Can you also quantify the impact that could come in the subsequent fourth quarter for the vtax for the remaining. Thank you for taking my. Question.<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Yeah, so if I understood your question correctly, you’re talking of the media and communication business and you’re talking of the, you know, what challenges in the top account. I don’t think we have any challenges there in that account. In fact it has been growing pretty well. So the confidence is from a number of other customer outreaches or number of other bids that we are placing. Right. So we strongly believe that look, a few of them will come to a closure in this quarter and that will sort of start the sort of recovery for our media and communication business, healthcare business as well.<\/p>\n

We have a similar sort of a situation and we definitely want to get both of these businesses also on a growth path as we enter the next financial year. So that’s what we’re focusing on regarding. Yeah. Yeah.<\/p>\n

Gaurav Bajaj<\/strong><\/p>\n

Your second question we already did for a junior to mid staff which is, which covers<\/p>\n

Rohit Jain<\/strong><\/p>\n

Almost<\/p>\n

Gaurav Bajaj<\/strong><\/p>\n

2\/3 of<\/p>\n

Rohit Jain<\/strong><\/p>\n

The organization<\/p>\n

Gaurav Bajaj<\/strong><\/p>\n

For the balance that will happen, you know, in this quarter, Current Quarter, Quarter 4 so you can expect, you know the impact for that would be. Lower to lower compared to what we. Have in the quarter three, maybe probably know 60, 70% of. That.<\/p>\n

Abhishek Chandatkar<\/strong><\/p>\n

That is helpful. And just a follow up on, you know the answer. Sir, if we look at the increase in the revenue by contract mix type and also see the recovery in utilization and the recovery in the top account, is it fair to assume that you know, in many, let’s say in large accounts of each of the three verticals primarily are time and. Material?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

No, it is, it’s a combination. Right. It’s not that all the accounts are, all the large accounts are time and material. A lot of them are fixed, bid and outcome based, you know, projects as well. So. So it’s a. Combination.<\/p>\n

Abhishek Chandatkar<\/strong><\/p>\n

Perfect. Thank you for taking my question and best wishes for the rest of the. Year.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Karan Uppal from Philip Capital India. Please go. Ahead.<\/p>\n

Karan Uppal<\/strong><\/p>\n

Yeah, thanks for the opportunity. Just a few questions on the transportation vertical. Sir, you mentioned about normalization of spends going ahead. Just want to pick your brain around the areas which you are seeing good traction in be it hybrids, EVs, ADA DAs connected. If you can share some thoughts there. And in the pipeline are you seeing large programs on the SDV. Front?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

So a lot of the growth that we’ve seen is coming from our, you know, sdv. You know the closures that we’ve had on the SDV side. Right. So of course you know, as you know we also have our own SDB suite called Avenir and that is also having, I mean bringing in a lot of traction for us. Apart from that of course electrification is another large play that we see both BEVs and hybrid platforms. So new platform development is something definitely we are seeing. ADHD of course continues to have traction.<\/p>\n

So yeah, so these are the, I would say top three, top three areas that really are pushing our automotive of course, you know, connected, the connected car platform and the applications around. It is also another area that we see a lot of traction going. Forward.<\/p>\n

Karan Uppal<\/strong><\/p>\n

Okay, okay, thanks. Thanks for that. Second thing is, you know, for the outlook for this automotive business. Is it broad based across your let’s say top 10 to 15 accounts or is it more concentrated between let’s say two to five accounts where you know you are seeing deal ramp. Ups?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

I would say it’s more in the, you know, top, you know, five to 10 accounts. Right. That’s where we are seeing the ramp up and these are happening across the geographies. It’s not limited to any one geography. So that’s positive for us because we are de risking ourselves from geography dependent, you know, situation as. Well.<\/p>\n

Karan Uppal<\/strong><\/p>\n

Perfect. Thanks. Thanks a lot sir and all the. Best.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Sukriti Patil from Eyesight Fintrade Private Limited. Please go. Ahead.<\/p>\n

Sukriti Patil<\/strong><\/p>\n

Good evening to the team and congratulations on the quarter. My question is with Tata Ellipses focus on design LED technology and recent partnerships in automotive and media. How do you see client conversions evolving? Are there shifting? Are they shifting from cost efficiency to co innovations? What should the stakeholders expect as a defining theme from your leadership in this space? Yeah, thanks. That’s my first question. I’ll ask a follow up. Question<\/p>\n

Bhavik Mehta<\/strong><\/p>\n

Please. This is Nilan here. I will take that but I did hear the second part. Clearly.<\/p>\n

Operator<\/strong><\/p>\n

So Krit, we request you to please repeat your. Question.<\/p>\n

Sukriti Patil<\/strong><\/p>\n

Yeah, okay. Okay. My question was with Tata Alexey focus on design LED technology and recent partnerships in automotive and media. How do you see client conversions evolving? Are they shifting from cost efficiency to co innovation module? What should the stakeholders expect as the defining theme from the leadership in this. Phase?<\/p>\n

Nitin Pai<\/strong><\/p>\n

Yeah, I think, just to clarify, I think the two are not exclusive in the sense that they tend to run together. I think in both industries there has been extremely strong pressure on bottom line especially because your top lines are not growing too well. Market share is normal to be climbing given the competition for example in the automotive space from the Chinese and so on. So there’s a clear mandate that look, whatever you do, you’ll have excellent technology, but at the same time you’ll have to deliver on fast.<\/p>\n

So I think in that sense, whether it’s the media and communication vertical which has seen that pressure on the top line for quite some time now, and therefore the cost takeout and the bottom line improvement has been a focus for some time now. I think you’re finding this need to find the right partners delivering from west coast country, but delivering outcomes and results rather than just delivering headcount. I believe that is really what will carry us. Forward.<\/p>\n

Sukriti Patil<\/strong><\/p>\n

Okay, thanks. My second question is to Mr. Bajaj on the financial side. You know, speaking beyond margins, how are you thinking about capital allocation in this phase? Like balancing dividends or investments in automotive innovation centers or any digital partnerships down the line? Do you see scope for a shift in capital deployment over the next one to two. Years?<\/p>\n

Gaurav Bajaj<\/strong><\/p>\n

I think we have been discussing internally within the organization management and also along with the board, of course, there are certain plans that has been, you know, put into the place and we have been, you know, tracking on those plans at the appropriate time. I think we will let you know in terms of, you know, any outcome or change in the capital allocation approach from our side. Probably we, you know, we announced in terms, in the, you know, during. The quarter four year end in terms. Of, during our agm, in terms of, you know, what would be the, you know, the distribution that we do.<\/p>\n

But there are some strategy, you know, internally that has been, you know, discussed, discussed properly. I think we may not be able to disclose at this moment of time, but at the appropriate time you would get to know, you know, what kind of plans and what are we, you know, thinking about. That.<\/p>\n

Sukriti Patil<\/strong><\/p>\n

Fair enough. Thank you for the guidance and I wish the entire team best of. Luck for the next. Quarter.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Sajal Kapoor from Anti Fragile Thinking. Please go. Ahead.<\/p>\n

Sajal Kapoor<\/strong><\/p>\n

Yeah, hi, thanks for taking my questions. And can you, can you name a commercially successful idea that initially looked, you know, unbelievable or irrational, but it became commercially successful. Thereafter?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Sorry, we couldn’t get the context of your. Question.<\/p>\n

Sajal Kapoor<\/strong><\/p>\n

So the context of the question is, you know, I just need an example. Preferably in healthcare, but even automotive or otherwise, you know, maybe a commercially successful IP idea that you have in the organization today, but initially that was deemed kind of irrational or unbelievable.<\/p>\n

Nitin Pai<\/strong><\/p>\n

Any. Example? Yeah, so I strongly believe, and I hope that as an engineering company we are quite, quite rational. So to that extent there’s very little that we do that is irrational. But having said that, if you look at it, most of the bets that we’ve taken in products and platforms are future looking because ultimately we are tracking standards, we are tracking technology convergence, and we are taking bets in advance. And that is why you tend to have mixed success with products and platforms, not because they are not right, simply because many a times we are simply ahead of time.<\/p>\n

A good example is the investments that we made in Neuron, which is a network automation and orchestration platform. We believe it’s ahead of its time simply because that’s the most elegant way to reduce cost in network management. And while telcos have been going after cost takeouts simply by throwing larger and larger deals for lower and lower costs, we believe the smarter way to go around it is to actually start investing and automating and orchestrating your network with technology and with automation rather than with people.<\/p>\n

But we also know that it’s ahead of this time. Why? Because telcos are not going to be so keen to throw themselves at another platform. Unfortunately, we have seen enough in life. So that is where I feel most of the time, we are ahead of time rather than. Irrational.<\/p>\n

Sajal Kapoor<\/strong><\/p>\n

That’s very helpful. Great response. Thank you for. That. And my second and last question. Is, you know, there is always some sort of a tension between creative creativity and delivery discipline. So when creativity conflicts with delivery discipline, which one loses and. Why?<\/p>\n

Nitin Pai<\/strong><\/p>\n

So I think this is in many ways two sides of the coin. The tension between creativity and discipline or engineering. I think it’s a good tension to have. And I can tell you this from my own experience as a designer. We always used to have this debate when we were young as to which designers were better. Were the ones that came from IDC IIT Bombay better because they had an engineering degree first, or was it the folks who came from NIV because they were pure creativity? They were not schooled in engineering.<\/p>\n

Opinion is divided, but I still believe when you’re schooled in engineering, the concepts that you come out with are a lot more manufacturable. Feasible productivity, pure creativity at times is great for the heart, but doesn’t work for the. Mind.<\/p>\n

Sajal Kapoor<\/strong><\/p>\n

Yeah, you mean so engineering, the practicalities and the scale up and the, the actual commercial viability is far more important than just having, you know, plain on paper kind of a creativity that if I, if I understood it. Correctly.<\/p>\n

Nitin Pai<\/strong><\/p>\n

Absolutely, anytime. That’s the whole. Basis. Thank you so. Much. The manufacturing world that it has to be realizable, otherwise it just becomes luxury. Art.<\/p>\n

Sajal Kapoor<\/strong><\/p>\n

Absolutely it does. Thank you so much for all the responses. Wish you all the very best. Thank. You.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Rishi Modi from RDM Advisory llp. Please go. Ahead.<\/p>\n

Rishi Modi<\/strong><\/p>\n

Yeah, hi guys. I’m new to the company so excuse my negative if any. On the healthcare front, we had seen a disruption in the past on the regulatory extension being given in Europe which if I’m correct it ends in 2026. So do you expect any sort of a pent up demand on that regulatory front coming for you in the coming. Year?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

No, I don’t think there is a pent up demand. In fact the regulatory piece, our business is over a period of time, really gradually coming down. In fact what is happening is we are moving all that regulatory, the sort of manual regulatory effort to more AI based digital sort of focus and I think we have been able to successfully move there. So I don’t think there will be a pent up demand per se, but we are hoping that using AI Genai and so on will really help capture a larger piece of work that otherwise would have to be done manually and so on.<\/p>\n

So that could be some sort of acceleration based on the digital technology that we bring in, but it’s not due to the runoff in 2026 and so. On.<\/p>\n

Rishi Modi<\/strong><\/p>\n

Okay, understood. Secondly, I wanted to understand our rationale on the defense business. In the past you were a bit non committal. I’m talking about five, six years back when you said that there’s a receivables issue in the industry plus some export issues to the us. So what has changed for us in maybe the industry or in our view or in our working which is now making us commit to the defense aerospace. Industry?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Yeah, we see globally also we see aerospace and defense as a great opportunity area primarily because of the spend that the industry is going through. Right. So there are a lot of new technologies that are coming in. There is UAVs and drones and you know, warfare is changing. There is, you know, other commercial applications of many of this in air taxis and so on. So, so what we see today is a lot more technology coming in, a lot more technologies like electrification coming in in a big way. So of course there are challenges with cycle times for the deals and if you’re doing defense sort of projects, especially in the US you need to be ITAR compliant and so on.<\/p>\n

So there are still some of the challenges that we need to address. But otherwise I think fantastic amount of opportunities exist, especially in India, the sort of both DRDO and labs and companies like HAL and of course a lot of global companies who have set up their capability centers in India, in Bangalore and so on. So that also opens up a lot of good opportunities for companies like us. Right. So I think we are doubling down our focus on the aerospace and defense segment and we have done some fantastic work in this space.<\/p>\n

So credibility is there, capability is being built now really we need to see how to have some commercial success. So that’s something that we’re working. On.<\/p>\n

Rishi Modi<\/strong><\/p>\n

And Manoj, do you think this will be an roce accretive like will the margins compensate for the receivable. Cycle in the future?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Yeah, it’s still early days. It’s still early days. I think if we look at the overseas market I don’t see any concerns on either profitability or payments and receivable and so on. Right. I don’t see any. But yeah, if you really only focus on the defence segment in India then yeah we do have some tweaks in our business model that we need to take care of but otherwise I think it’s a great business. And especially the type of opportunities that we see in India it’s a great opportunity to build capabilities and really.<\/p>\n

And then really explore the same globally. Right. I think it’s a good opportunity.<\/p>\n

Rishi Modi<\/strong><\/p>\n

That’s great to hear. Finally just a quick one on the non PV transportation which is the off highway construction equipment railway that we had entered into. We decided for 20% of our transportation revenue coming from this segment in I think we had guided for three years back then but I think we’ve overshot but just wanted to understand where are we in that journey? Are we still tracking that 20% and when can it be. Achieved?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Yeah, we are still tracking that 20%. Right. So I think today we are about seven,<\/p>\n

Jalaj<\/strong><\/p>\n

Seven<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

And a half or eight, eight percentage is where we are today. So I think there’s an opportunity in the next couple of years or three years to really look at 20%. The difference this time is that we really have some good logos that we have opened up and good opportunity in this space and the spend in this industry is also growing. Right. So I think that’s positive for. Us.<\/p>\n

Rishi Modi<\/strong><\/p>\n

So we are at that point where we have a right to win that business. Like we’ve gone through that phase where we’ve established ourselves and do you think this adds up to our revenue in the next couple of years and we get to that 20, an extra. Five. That’s what we<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Hope for a smaller market as compared to the automotive market. So to that extent we need to be a little careful but I think the opportunity. Exists.<\/p>\n

Rishi Modi<\/strong><\/p>\n

All right, all right, great. That’s good to hear. I’ll come back in the queue for a more conceptual question, but if there are others, you all can go. Ahead.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Sulab Govila from Morgan Stanley. Please go. Ahead.<\/p>\n

Sulabh Govila<\/strong><\/p>\n

Yeah, hi. Am I. Audible?<\/p>\n

Operator<\/strong><\/p>\n

You are audible, sir. You may. Proceed.<\/p>\n

Sulabh Govila<\/strong><\/p>\n

Yeah, thanks for taking my question and congrats on a good set of results. I had a couple of questions. So first is with respect to growth in the near term, I just wanted to understand, just want to check my understanding if that is correct. So what we spoke about from a 4Q perspective or a near term perspective is that we are expecting a recovery in both media and healthcare verticals versus what we did in the third quarter and even in the transportation vertical. While the SDV deals are largely in the steady state, the top account still has to return to the peak run rate and there are other deals in adjacencies which are ramping up.<\/p>\n

So shouldn’t 4q is similar to better than 3q from a growth perspective? I mean, I’m just trying to understand, is there anything we should keep in mind which can change that trajectory as we enter into. 4Q?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

No, we don’t want to give any indicator at this point in time. Right. So we don’t do that. But we’ve talked about, you know, and you’ve rightly paraphrased all what we talked about. Right. So. So I think your analysis is. Perfect.<\/p>\n

Sulabh Govila<\/strong><\/p>\n

Sure, sure. Thank you. And the second question is on the utilization bit. So in the past, we’ve always talked about reaching a peak utilization rate of 80% odd. While today, you know, it may be the first time we ever spoke about potentially reaching 85% levels. So just trying to understand, is there anything which has changed structurally for you in the delivery organization, you know, from a workflow automation perspective, you know, which is changing this thought process on the utilization. Levels.<\/p>\n

Nitin Pai<\/strong><\/p>\n

If I may, I think, and if you can hear me, I think historically we have hit 85, 86% at the peak of our growth. It’s just that at that time we do not have all the benefits that come from what you have now as tools and technologies. So technically, at that time we felt a little constrained, that, look, 85, 86% kind of stretches a little too much and we don’t have enough room to maneuver. I think given the context that we are in today and the kind of work that we’re doing and the kind of investments we’re making with AI engineering, that stretch is not as tight as what before.<\/p>\n

So 85 feels. Comfortable.<\/p>\n

Sulabh Govila<\/strong><\/p>\n

Okay, sir. Understood. Thanks for taking my. Vision.<\/p>\n

Nitin Pai<\/strong><\/p>\n

Thank.<\/p>\n

Operator<\/strong><\/p>\n

You. Thank you. Our next question is from the line of Rohit Jain from Tara Capital Partners. Please go. Ahead.<\/p>\n

Rohit Jain<\/strong><\/p>\n

Yeah, hi, can you hear me,<\/p>\n

Operator<\/strong><\/p>\n

Sir? You are. Audible. You may. Proceed.<\/p>\n

Rohit Jain<\/strong><\/p>\n

Yeah, so my question is on the anchor client. Now, I understand last quarter there was an issue and then, sorry, last to last quarter, and then last quarter it sort of came. Back. But given the issues ongoing there. And the kind of debt situation that’s. Developing for the next year on a. Whole, do you expect the anchor client. To grow from the, from this year’s. Level or do you expect it to be stable? How should we think about the trajectory on the anchor client. Side?<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Yeah, I think there are too many changes that are happening in the marketplace also. Right. But if you ask me, our focus is to definitely ensure that all customers, including our anchor customer, at least the top 15, top 20 customers, we are on a steady growth path. So that’s definitely the focus. We don’t have any indication at this point in time saying that, look, we will have some difficulties or we’ll have some surprises. So we are hoping that we will be able to grow our top five, top 10, top 20 customers.<\/p>\n

So<\/p>\n

Rohit Jain<\/strong><\/p>\n

We’ll<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Be optimistic. There.<\/p>\n

Rohit Jain<\/strong><\/p>\n

And just last question on that anchor client. Again, are you sort of gaining share of the work being done there or is the share stable? And the growth depends on the increase in tech spends by the anchor. Client.<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

So if you look at it over the last five years or even a little more, our share in the overall spend of this customer has only increased. So I think again, it all comes down to the value proportion. Right. Especially in tough market situations, the value proportion that we bring in is very, very strong. Right. So I don’t think we have an issue on that. Front.<\/p>\n

Shashank Ganesh<\/strong><\/p>\n

Okay, thank you. Thanks a. Lot.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question comes from the line of Jalaj from Swan. Please go. Ahead.<\/p>\n

Jalaj<\/strong><\/p>\n

Thanks for the opportunity. Hope I’m. Audible.<\/p>\n

Operator<\/strong><\/p>\n

You are audible. Sir.<\/p>\n

Jalaj<\/strong><\/p>\n

Congrats on a good set of numbers. So first question was with regards to this one time adjustment for the labor law changes. So are we done for all the prior period adjustments or there is something which comes in the next quarter also? And second part to it was what would be going on as a going concern? Incremental impact because of this in people cost or on the margins, should we. Expect.<\/p>\n

Gaurav Bajaj<\/strong><\/p>\n

Hi Jalaj, this is Gaurav. Let me answer your question. I think we have made the provision in line with the accounting norm and also assessed by our auditors for the new acts on the new Labor Code got enacted during the quarter. We believe that one time catch up is already being done in this quarter and hence we have also called this out as an exceptional item because this is something not going to be a usual line item in our financials going forward. However, given the change in the labor Code and the defendant definition of the wages on the going forward basis, we expect this impact not to be more than 1520 basis point, but probably that will also get, you know, compensated with the other levers and the, you know, utilization factors that we still see.<\/p>\n

You know, there’s a scope for the improvement over there, but at large we don’t think there should be any impact for the new labor code going forward<\/p>\n

Sajal Kapoor<\/strong><\/p>\n

In<\/p>\n

Gaurav Bajaj<\/strong><\/p>\n

The subsequent quarter. However, we have to, we continue to monitor, we continue to track in terms of the more clarifications that probably would become coming down in this quarter or maybe the next quarter because the rules got republished. But those rules are still not notified and still not enacted. So once we have the little bit better clarity rules gets notified, then we have to assess if there are certain more changes or adjustment to be required. But we believe, believe that, you know, the significant or the most, I mean the larger part of it is already baked into the numbers and as such we don’t see anything potential or significant coming, you know, in the coming.<\/p>\n

Quarter.<\/p>\n

Jalaj<\/strong><\/p>\n

Got it, got it. That, that explains it. And my second question was with regards to the, the business side, so specifically on, I wanted to understand on the transportation side. So we understand that the, the top client has come back and has come back strongly and there were a few projects which were stalled. So if you could give us some flavor as to what proportion of these stalled projects have they ramped up to the maximum or there is more to come from that. Just trying to understand on the sustainability of the.<\/p>\n

Growth.<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Yeah, so I think as we explained earlier, there definitely has been some catch up in terms of pent up demand that we have fulfilled in this quarter. A part of it will definitely continue as we speak into the subsequent quarters as well. But again, the focus for us is to really look at the larger basket of customers, our top five top 10 customers and see how we can ensure growth across these customers as well. I think that’s where we are. We are over a period of time constantly trying to diversify our concentration risk if you may, in some sense.<\/p>\n

We are trying to diversify our geography risk, if you may, in some sense. And I think each of those strategies are working out for us and especially when times are tough in say some geographies like us or Europe, our focus on Japan and India has really helped us. So I think, I think at this point in time, if you look at it, a basket of customers and the various geographies that we operate in, I think we are in a decent situation, good situation to be in, I would say. And we need not be overly dependent on a particular geography or a particular set of customers.<\/p>\n

So to that extent, I think we are de risking and diversifying our overall portfolio, which in the mid term to long term, I think will really help. Us.<\/p>\n

Jalaj<\/strong><\/p>\n

Fair enough. Just a quick one on that. So the newer projects, what we alluded to, the newer ramp ups in the newer clients, are they, are they the peak, the margins for these projects comparable to the peak margins we used to do historically, or they are slightly at a lower price or a slower, lower margins because of whatever has happened in the transportation vertical assets because of the tariffs and otherwise pressures. How should we understand. That<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

It’s a basket of accounts? Right. So there is no one answer there. Right. Depending on criticality of a particular customer or the skills or capabilities that, you know, that we need to bring in, we look at the margins accordingly. Right. There’s no set rule that look, this is the only margin that we would operate on and so on. Right. At the end of the day, it’s our responsibility to really uplift the overall margins in the business. And that’s what we are focused on. How we do it, we take a portfolio approach or how we do it is entirely dependent on what do we see in the marketplace, what skills do we need to bring in and what value are we creating to those customers based on that we would really price in the deals and the margin moment will be according to.<\/p>\n

That.<\/p>\n

Jalaj<\/strong><\/p>\n

Understood, Understood. And then sir, you alluded to that one of the reasons of the growth coming in transportation was the comparatively better macro or the comparatively better demand situation or discussions from the clients. So how should we understand that over the past 2, 3\/4 has there been any improvement in the demand scenario or discussions at least have the clients started to think about, talk about signing newer deals or discussions? Because I understand newer launches or a complete portfolio was postponed by a few quarters to a few years for a lot of clients.<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Yeah, no, I think for us. From an automotive perspective, we’ve already, you know, indicated that, you know that yes, there are discussions happening. There are new deals, new discussions, new customer additions and all of that is happening. Right. We are hoping that both in both media and communication as well as healthcare, we will be able to turn around that business. And our focus is to really get back all the three businesses of ours to a growth situation which will give us a lot of leverage from an investment perspective, from a.<\/p>\n

From a growth perspective, from utilization perspective, from a return to higher profitability perspective. So a number of things that we are really focused on and I think, you know, in the next two quarters you will see a trajectory or a trend. Right. That will give you an indication in terms of where this is. Moving.<\/p>\n

Jalaj<\/strong><\/p>\n

Got it, Got it. Thanks for the answers. Best of. Luck.<\/p>\n

Operator<\/strong><\/p>\n

Thank you, ladies and gentlemen. We will take that as our last question for today. I would now like to hand the conference over to the management for closing comments. Over to you. Sir.<\/p>\n

Manoj Raghavan<\/strong><\/p>\n

Thank you to all the investors who dialed in today evening. We really look forward to having a more detailed conversation. And towards the end of end of the next quarter, we are really confident that, look, we have done a number of things right, we have done a number of investments right now. How do we leverage that and how do we move that into revenue growth and profitability growth? That is what the team is really focused on. Thank you so much and look forward to interacting with you again in the next investor.<\/p>\n

Call.<\/p>\n

Operator<\/strong><\/p>\n

Thank you on behalf of Tata Alexey limited. That concludes this conference. Thank you all for joining us. You may now disconnect your.<\/p>\n","protected":false},"excerpt":{"rendered":"

Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon. Tata Elxsi Ltd (NSE: TATAELXSI) Q3 2026 Earnings Call dated Jan. 13, 2026 Corporate Participants: Manoj Raghavan \u2014 Managing Director and Chief Executive Officer Gaurav Bajaj \u2014 Chief Financial Officer Nitin Pai \u2014 Chief Marketing […]<\/p>\n","protected":false},"author":2377,"featured_media":147581,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6349],"tags":[10169,9175,9104,9092,14492,10089],"class_list":["post-181641","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-transcripts","tag-earnings","tag-earnings-call","tag-earnings-conference","tag-earnings-transcripts","tag-financial-results","tag-quarterly-earnings"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":126486,"url":"https:\/\/alphastreet.com\/india\/tata-elxsi-ltd-q3-fy22-earnings-conference-call-insights\/","url_meta":{"origin":181641,"position":0},"title":"Tata Elxsi Ltd Q3 FY22 Earnings Conference Call Insights","author":"Praveen","date":"January 20, 2022","format":false,"excerpt":"https:\/\/www.youtube.com\/watch?v=JsfIiI_UUNA Key highlights from Tata Elxsi Ltd (TATAELXSI) Q3 FY22 Earnings Concall Management Update: TATAELXSI said that the company crossed the INR200 crore PBT and INR150 crore PAT milestones for the first time in the company\u2019s history, with the growth powered by its largest division, Embedded Product Design Division (EPD).\u2026","rel":"","context":"In "Concall Highlights"","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":126417,"url":"https:\/\/alphastreet.com\/india\/earnings-update-tata-elxsi-reports-q3-results-with-a-significant-rise-in-net-profit\/","url_meta":{"origin":181641,"position":1},"title":"Earnings Update: Tata Elxsi reports Q3 results with a significant rise in net profit","author":"Nishad","date":"January 18, 2022","format":false,"excerpt":"Tata Elxsi(NSE:\u00a0TATAELXSI) reported its third-quarter results for 2022 after the market hours today. Tata Elxsi had a consolidated revenue of \u20b9641 crores with a growth of 30% on a yearly basis. 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