Tata Elxsi, a global design and technology services company, said in its latest analyst call that it advanced the adoption of GenAI in FY26. According to managing director and CEO Manoj Raghavan, this progress was driven by partnerships with AI companies, the launch of its automotive SDLC platform DevStudio.ai, curated tool stacks and agent inventory, investments in infrastructure and sandbox environments with IP protection and data privacy, along with rigorous upskilling initiatives.
Raghavan said these coordinated efforts are helping the company steadily progress towards becoming an AI-native engineering organisation, while strengthening its differentiation and innovation capabilities.
“I am pleased with our sustained and strong operational performance through segment-leading offshore delivery, continued transition to fixed-bid project ownerships, and the systematic and enterprise-wide adoption of AI-enabled efficiencies,” he said.
He added that these initiatives strengthened execution discipline and productivity, leading to consistent margin improvements throughout the year. Entering the next financial year, Tata Elxsi plans to focus on scaling its design-led and AI-enabled offerings, strengthening operational leverage, and driving sustainable growth with healthy margins.
Raghavan further noted that AI and GenAI are creating multiple opportunities for margin expansion. While Generative AI-related discussions are currently more prominent in the media and telecom sectors, he said early-stage conversations are also emerging in the automotive and healthcare industries.
He added that AI now forms a component of almost every project bid undertaken by the company. Tata Elxsi internally tracks the impact of AI on efficiency, productivity and margins to assess its long-term benefits.
“At the same time, we are not conservative at all,” Raghavan said, while adding that the company is adopting AI in a balanced and measured manner rather than “going overboard.”
