TATAELXSI Q2 FY27 Guidance vs Delivery (TATAELXSI Management Mirror)

Q2 FY27 EBITDA Margin Expands to 21.9%, Delivering the Rebound Guided in Jun'26 Qtr

In Sep'26 Qtr, Tata Elxsi reported an EBITDA margin of 21.9%, expanding by 70 basis points sequentially, while standalone Quarterly Financial Results showed an EBIT margin of 19.7%. This outcome delivers the recovery guided in the Jun'26 Qtr concall, where management projected that Q2 margins would reflect the elimination of approximately 150 basis points of previous one-off transition costs balanced against the impact of a planned company-wide wage hike. For the remainder of FY27, management targets a gradual, upward trajectory in EBITDA margins and maintains its earlier Mar'26 Qtr goal of achieving an exit PBT margin of approximately 27% by Q4 FY27. This forward expansion is expected to be driven by operational leverage as revenue scales, utilization gains beyond the current 78%, and active pyramid correction over the next two to three quarters to replace senior technical resources with junior staff on maturing engagements, with no further material movements anticipated in employee costs.