Tata Elxsi
Tata Elxsi
Information Technology F&OKey Fundamentals
SmallcapComputer Software & ConsultingInformation TechnologyTapetide Score
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Key Insights
Strengths
3- Company is almost debt free.
- Company has a good return on equity (ROE) track record: 3 Years ROE 28.6%
- Company has been maintaining a healthy dividend payout of 63.0%
Growth Rate
AI Analysis — Bull vs Bear
Tata Elxsi has a market capitalisation of about ₹19,869 crore and trades at a P/E of 30.3x and a P/B of 6.52x. The company is almost debt free, has averaged a 32% ROE over 10 years and pays out 63% of profits as dividends, for a 2.36% yield. Growth has slowed sharply, though: 3-year sales CAGR is 6% against 16% over 5 years, TTM profit is down 5%, ROE fell to 24% last year, and the stock has lost 40% over the past year.
- The company is almost debt free, so it has financial flexibility and little interest-rate or refinancing risk during a slowdown.
- ROE has been high for a long time: 32% over both 10 and 5 years and 29% over 3 years. That points to a capital-light, high-return business model.
- A 63% dividend payout gives a 2.36% dividend yield, which is above average for Indian IT services and design firms.
- Over 10 years, sales grew at a 13% CAGR and profit at a 16% CAGR, so the company has a record of compounding across cycles.
- Revenue is still growing, though more slowly: TTM sales are up 5% and 3-year sales CAGR is 6%, so the top line has not contracted.
- The stock's 10-year CAGR of 16% closely tracks the 16% 10-year profit CAGR, which suggests long-run returns have followed earnings.
- After a 40% fall over 1 year and a -24% 3-year CAGR, much of the growth slowdown may already be reflected in the multiple of 30.3x earnings.
- Profits are shrinking: TTM profit growth is -5% and 3-year profit CAGR is -3%, compared with a 14% 5-year profit CAGR.
- Revenue growth has decelerated from a 16% 5-year sales CAGR to 6% over 3 years and 5% TTM.
- Margins appear to be under pressure. TTM sales grew 5% while TTM profit fell 5%, a 10-percentage-point gap.
- ROE fell to 24% last year from a 5-year average of 32%, which suggests lower returns on capital.
- Even after the correction, a P/E of 30.3x and P/B of 6.52x are premium multiples for a business whose 3-year profit CAGR is negative (-3%).
- Shareholder returns have been weak: -40% over 1 year, -24% CAGR over 3 years and -11% CAGR over 5 years.
- At a market cap of about ₹19,869 crore, the company is much smaller than large-cap IT peers, so it may be more exposed to slowdowns in client spending.
- A 63% dividend payout leaves less capital to reinvest in growth at a time when sales growth has slowed to 5-6%.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Strategic investment in KAVIA AI Sep 10
Tata Elxsi invested in Silicon Valley-based enterprise AI platform KAVIA AI through its STEP.UP program, after the two firms spent one year deploying the platform together on enterprise engineering use cases. The deal pairs Tata Elxsi's domain-led engineering with KAVIA's knowledge graph and workflow intelligence to support AI Development Lifecycle (AIDLC) work on brownfield codebases with millions of lines of code.
- J.P. Morgan conference analyst meet Sep 17
Tata Elxsi will join a physical group meeting at the J.P. Morgan India Conference in Mumbai on September 22, 2026, disclosed under SEBI Regulation 30. This is a routine investor-engagement event, though management commentary could shape near-term sentiment.
TL;DR: Recent news is mostly strategic and procedural rather than financial. The KAVIA AI investment strengthens Tata Elxsi's GenAI-led engineering pitch, especially for modernising legacy software environments, but the investment size and revenue impact were not disclosed. These articles show no specific headwinds. Investors should watch management's comments at the September 22 J.P. Morgan conference for signals on demand trends and how quickly AI offerings turn into revenue.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 850 | 882 | 914 | 906 | 926 | 955 | 939 | 908 | 892 | 918 | 953 | 994 | 1,021 |
| Expenses | 599 | 618 | 644 | 645 | 674 | 689 | 693 | 701 | 705 | 725 | 731 | 749 | 805 |
| Operating Profit | 251 | 264 | 270 | 261 | 252 | 266 | 247 | 208 | 187 | 193 | 222 | 245 | 216 |
| OPM % | 30% | 30% | 30% | 29% | 27% | 28% | 26% | 23% | 21% | 21% | 23% | 25% | 21% |
| Other Income | 22 | 31 | 35 | 34 | 32 | 64 | 40 | 43 | 38 | 49 | -50 | 51 | 41 |
| Interest | 4 | 6 | 6 | 5 | 5 | 5 | 5 | 5 | 5 | 4 | 4 | 4 | 3 |
| Depreciation | 21 | 25 | 25 | 28 | 27 | 27 | 26 | 25 | 24 | 23 | 23 | 23 | 22 |
| PBT | 248 | 264 | 274 | 262 | 252 | 299 | 256 | 221 | 196 | 215 | 146 | 268 | 232 |
| Tax % | 24% | 24% | 25% | 25% | 27% | 23% | 22% | 22% | 26% | 28% | 26% | 18% | 27% |
| Net Profit | 189 | 200 | 206 | 197 | 184 | 229 | 199 | 172 | 144 | 155 | 109 | 220 | 171 |
| EPS in Rs | 30.32 | 32.12 | 33.15 | 31.62 | 29.56 | 36.84 | 31.95 | 27.68 | 23.18 | 24.85 | 17.48 | 35.37 | 27.38 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 849 | 1,075 | 1,237 | 1,386 | 1,597 | 1,610 | 1,826 | 2,471 | 3,145 | 3,552 | 3,729 | 3,757 | 3,886 |
| Expenses | 672 | 827 | 964 | 1,039 | 1,181 | 1,266 | 1,303 | 1,704 | 2,182 | 2,505 | 2,755 | 2,909 | 3,010 |
| Operating Profit | 177 | 248 | 274 | 347 | 416 | 344 | 524 | 767 | 962 | 1,047 | 974 | 848 | 876 |
| OPM % | 21% | 23% | 22% | 25% | 26% | 21% | 29% | 31% | 31% | 29% | 26% | 23% | 23% |
| Other Income | 4 | 12 | 18 | 43 | 43 | 58 | 40 | 45 | 74 | 122 | 179 | 88 | 91 |
| Interest | 1 | 1 | 1 | 1 | 1 | 7 | 7 | 10 | 17 | 21 | 20 | 18 | 14 |
| Depreciation | 25 | 23 | 27 | 25 | 25 | 43 | 44 | 55 | 81 | 99 | 105 | 94 | 92 |
| PBT | 156 | 236 | 264 | 364 | 433 | 352 | 512 | 745 | 938 | 1,049 | 1,028 | 825 | 861 |
| Tax % | 34% | 34% | 34% | 34% | 33% | 27% | 28% | 26% | 19% | 24% | 24% | 24% | — |
| Net Profit | 103 | 155 | 175 | 240 | 290 | 256 | 368 | 550 | 755 | 792 | 785 | 628 | 655 |
| EPS in Rs | 16.52 | 24.85 | 28.05 | 38.54 | 46.56 | 41.12 | 59.11 | 88.26 | 121 | 127 | 126 | 101 | 105 |
| Div. Payout % | 33% | 28% | 29% | 29% | 29% | 40% | 81% | 48% | 50% | 55% | 60% | 74% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 31 | 31 | 31 | 62 | 62 | 62 | 62 | 62 | 62 | 62 | 62 | 62 |
| Reserves | 252 | 355 | 527 | 676 | 880 | 1,028 | 1,290 | 1,539 | 2,023 | 2,443 | 2,798 | 2,979 |
| Borrowings | 0 | 0 | 0 | 0 | 0 | 58 | 73 | 138 | 185 | 225 | 192 | 162 |
| Other Liabilities | 182 | 214 | 158 | 207 | 201 | 241 | 291 | 430 | 493 | 457 | 533 | 759 |
| Total Liabilities | 465 | 600 | 715 | 945 | 1,143 | 1,389 | 1,717 | 2,169 | 2,764 | 3,187 | 3,586 | 3,963 |
| Fixed Assets | 98 | 107 | 108 | 94 | 101 | 147 | 170 | 272 | 334 | 396 | 318 | 259 |
| CWIP | 3 | 2 | 1 | 2 | 0 | 1 | 7 | 22 | 7 | 2 | 2 | 0 |
| Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Assets | 364 | 491 | 607 | 848 | 1,042 | 1,241 | 1,540 | 1,876 | 2,423 | 2,789 | 3,266 | 3,703 |
| Total Assets | 465 | 600 | 715 | 945 | 1,143 | 1,389 | 1,717 | 2,169 | 2,764 | 3,187 | 3,586 | 3,963 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 143 | 121 | 144 | 197 | 215 | 256 | 437 | 483 | 487 | 701 | 812 | 664 |
| Investing | -29 | -31 | 28 | -245 | -162 | 43 | -439 | -106 | -201 | -274 | -311 | -70 |
| Financing | -32 | -41 | -52 | -60 | -83 | -124 | -126 | -326 | -303 | -428 | -499 | -535 |
| Net Cash Flow | 83 | 49 | 120 | -108 | -30 | 175 | -128 | 51 | -17 | -1 | 2 | 59 |
| Free Cash Flow | 110 | 84 | 118 | 185 | 184 | 233 | 399 | 412 | 423 | 618 | 796 | 654 |
| CFO/OP | 103 | 79 | 88 | 90 | 86 | 100 | 107 | 90 | 70 | 92 | 106 | 105 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 66 | 73 | 72 | 81 | 81 | 89 | 98 | 99 | 113 | 100 | 95 | 105 |
| Inventory Days | — | — | — | 0 | 6 | 8 | — | 2 | 1 | 2 | — | — |
| Days Payable | — | — | — | — | 205 | 212 | — | 244 | 202 | 162 | — | — |
| Cash Conversion Cycle | 66 | 73 | 72 | 81 | -117 | -116 | 98 | -143 | -88 | -60 | 95 | 105 |
| Working Capital Days | 10 | 26 | 54 | 59 | 69 | 72 | 53 | 47 | 75 | 72 | 65 | 53 |
| ROCE % | 60% | 71% | 56% | 57% | 51% | 35% | 40% | 48% | 48% | 43% | 36% | 30% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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65 extracted metrics + investor summaries across FY11–FY27.
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Company Information
Tata Elxsi is amongst the world’s leading providers of design and technology services across industries including Automotive, Media, Communications and Healthcare. Tata Elxsi provides integrated services from research and strategy, to electronics and mechanical design, software development, validation and deployment, and is supported by a network of design studios, global development centers and offices worldwide. [1]
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