Tata Elxsi to rebalance work between senior and junior staff to lift productivity
Tata Elxsi will shift some tasks to junior employees over six months to raise utilisation and control costs. Reported by Moody's.
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what happened
Indian company Tata Elxsi plans to review how work is split between senior and junior employees over the next six months. The aim is to raise workforce utilisation, productivity and cost efficiency. CEO Manoj Raghavan made the remarks on the Q2 FY27 earnings call.
According to Raghavan, some tasks now handled by senior staff and technical experts will gradually move to junior employees, who have already been receiving training. Employee utilisation was around 78 per cent in the quarter. CFO Nalin Rana said there is room to improve utilisation and that the company is also reviewing junior-level hiring.
Revenue from operations was Rs 1,055 crore in Q2 FY27, up 2.3 per cent in constant currency. Management said operational efficiencies and the fading of one-time expenses helped offset the impact of salary increases on margins.
why it matters
The story is operational and concerns one company. For investors, the key question is whether Tata Elxsi can hold its margins: management expects employee costs to stay largely stable for the rest of the year, with efficiencies supporting results in coming quarters.
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- Tata Elxsi Reviews Workforce Structure To Improve Productivity And Control Costs — Moody's, 25 October 2026 at 02:03 UTC
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