Tata Elxsi Ltd
Tata Elxsi Ltd
Information Technology F&OKey Fundamentals
SmallcapComputer Software & ConsultingInformation TechnologyInsights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
Log in to view Tata Elxsi Ltd insights
39 extracted metrics + investor summaries across FY15–FY26.
Tapetide Score
Data-driven rating, 0–100. How it works →
Technical Indicators
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%
Weaknesses
1- Stock is trading at 7.74 times its book value
Growth Rate
AI Analysis — Bull vs Bear
Tata Elxsi Ltd is a mid-cap IT design and technology services company with a market cap of Rs 23,441 Cr trading at a PE of 35.6x. Revenue growth has decelerated sharply to 5% TTM from a 5-year CAGR of 16%, while profits have declined 5% TTM. The company remains virtually debt-free with a 3-year average ROE of 29% but the stock has corrected 37% over the past year.
- Company is almost debt-free, providing strong balance sheet flexibility and minimal interest burden
- Excellent long-term ROE track record at 32% over 5 and 10 years, significantly above IT sector averages
- Healthy dividend payout ratio of 63% with a current dividend yield of 2.01%, offering meaningful shareholder returns
- Long-term compounded profit growth of 16% over 10 years demonstrates sustained earnings power
- 10-year stock CAGR of 16% reflects long-term wealth creation despite recent correction
- 5-year compounded sales growth of 16% shows the company scaled well during the digital transformation wave
- PE of 35.6x is well below its historical premium multiples, suggesting the stock has de-rated from peak valuations after the 37% correction
- Niche positioning in embedded systems, automotive design, and media & communications offers differentiated revenue streams compared to generic IT services
- TTM profit growth has turned negative at -5%, marking a clear deterioration from 14% CAGR over 5 years
- Revenue growth has decelerated sharply to 5% TTM versus 16% over 5 years, signaling demand slowdown
- Stock has declined 37% over the past 1 year, indicating severe loss of market confidence
- 3-year compounded profit growth is negative at -3%, suggesting earnings pressure is not just a one-quarter blip
- Stock trades at 7.68x book value, a steep valuation premium that requires high growth to justify
- ROE has declined from 32% (5-year average) to 24% in the last year, a 800 bps deterioration
- 3-year stock CAGR of -19% shows prolonged underperformance, not just a short-term dip
- 3-year compounded sales growth of only 6% suggests structural slowdown in client spending rather than a cyclical pause
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Tax penalty under review Jul 20
Received income tax penalty order of Rs 67,29,774 from Commissioner of Income Tax. Company says order is under review.
- Q1 profit up 18.2% YoY Jul 14
Net profit rose 18.2% YoY to ₹1,705.99 crore in Q1FY27. Revenue from operations grew 14.5% to ₹10,211.08 crore.
- Healthcare MoU with SCTIMST Jul 27
Signed MoU with Sree Chitra Tirunal Institute for Medical Sciences to collaborate on next-generation healthcare solutions combining clinical expertise with advanced engineering.
- Earnings announcement scheduled Jul 14
Tata Elxsi was among ten companies across multiple sectors scheduled to announce Q1 results on Jul 14, tracked by market participants for sectoral insights.
TL;DR: Tata Elxsi delivered solid Q1FY27 results with 18.2% profit growth and 14.5% revenue expansion, signaling healthy demand in IT services. The healthcare MoU with SCTIMST opens a new innovation avenue. The tax penalty is minor at ~Rs 67 lakh and poses negligible financial risk. Overall trend is positive with strong earnings momentum heading into FY27.
Quarterly Results
| 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
| 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
| 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
| 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
| 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% |
Documents
Frequently Asked Questions about Tata Elxsi Ltd
What does Tata Elxsi Ltd do?
Where is Tata Elxsi Ltd (TATAELXSI) listed?
Which sector does Tata Elxsi Ltd belong to?
What is the market capitalisation of Tata Elxsi Ltd?
What is the PE ratio of Tata Elxsi Ltd?
What is the 52-week high and low of Tata Elxsi Ltd?
Does Tata Elxsi Ltd pay dividends?
What is the Return on Equity (ROE) of Tata Elxsi Ltd?
How can I research Tata Elxsi Ltd on Tapetide?
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]