Tata Elxsi reported a 45% year-on-year decline in net profit to ₹108.89 crore for the third quarter of FY26. This drop was attributed to a one-time charge for new labor codes and seasonal furloughs impacting Media & Communications and Healthcare verticals. Revenue saw a marginal 1.5% increase to ₹953 crore. The company anticipates recovery in Q4, driven by growth in the transportation business and new deals in Healthcare, with broad-based growth noted in Europe and the U.S.