Tata Elxsi is working to rebalance its staffing pyramid by shifting more work from senior to junior employees over the next two to three quarters, as part of a broader push to improve margins, the company said during its Q2 FY27 earnings call on October 13, 2026.
The Bengaluru-based design and technology services company reported operating revenue of Rs 1,055.7 crore for the quarter, up 3.4% sequentially and 15.0% year on year, with EBITDA margin expanding by 70 basis points to 21.9% despite the impact of an annual wage revision. Headcount declined to 11,149 employees as of September 30, 2026, from 11,336 in the previous quarter, continuing a gradual downward trend from 11,951 a year earlier.
“A continued focus on delivery excellence enabled us to expand EBITDA margin by 70 basis points sequentially, despite the impact of the annual wage revision,” said Manoj Raghavan, CEO and Managing Director, Tata Elxsi.
On the staffing pyramid shift, Chief Financial Officer Nalin Rana told analysts on the call, “Over a period of time, we need to manage with more junior staff and so on,” adding that utilisation stood at about 78% for the quarter, with room to rise toward historical peaks of 81% to 82%. The company said it is calibrating junior hiring even as it works to improve utilisation.
Management said Europe remains a soft market, particularly in automotive, with delays in decision-making and large deal closures, though it reported no ramp-downs. The company expects the second half of FY27 to be better than the first half on a year-on-year basis.
