Tata Elxsi Ltd logo

Tata Elxsi Ltd

TATAELXSI NSE

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]

AI Verdict: SELL Confidence: 7%

Tata Elxsi trades at a PE of 40.8x with compounded profit declining 11% TTM and 64% of analysts recommending a sell. While the company's debt-free balance sheet and historical ROE of 29% over 3 years are commendable, the sharp deceleration in growth and expensive valuation at 8.43x book value make the risk-reward unfavorable at current levels.

Key Fundamentals

SmallcapComputer Software & ConsultingInformation Technology
Market Cap
₹25,261 Cr
Volatility
Moderate
P/E Ratio
39.93
EBITDA
₹181 Cr
Return on Equity
36%
Debt to Equity
0
Book Value
₹488.2
EPS
₹126.48
52W High
₹6,439.5
52W Low
₹3,926.1

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 8.25 times its book value

Growth Rate

Revenue Growth
1.00% ↘
Net Income Growth
-11.00% ↘
Cash Flow Change
1969.18% ↗
ROE
24.00% ↗
ROCE
-
EBITDA Margin (Avg.)
-

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
SELL
Risk high

Tata Elxsi trades at a PE of 40.8x with compounded profit declining 11% TTM and 64% of analysts recommending a sell. While the company's debt-free balance sheet and historical ROE of 29% over 3 years are commendable, the sharp deceleration in growth and expensive valuation at 8.43x book value make the risk-reward unfavorable at current levels.

Bull Case 7
  • Company is virtually debt-free, providing financial resilience and flexibility for future investments without interest burden
  • Strong 3-year ROE track record of 28.6%, indicating efficient capital allocation and high-quality earnings
  • Healthy dividend payout ratio of 63% with current dividend yield of 1.82%, offering tangible shareholder returns
  • 10-year compounded sales CAGR of 13% demonstrates a long-term structural growth trajectory in the design-led technology services space
  • 5-year compounded profit CAGR of 14% shows the company has historically delivered strong earnings growth over a full business cycle
  • 10-year stock CAGR of 16% has rewarded long-term investors with meaningful wealth creation
  • 5-year ROE average of 32% is significantly above industry average, reflecting a capital-light business model with strong moats
Bear Case 8
  • TTM compounded profit growth has turned negative at -11%, signaling a clear earnings downcycle
  • 64% of analysts (9 out of 14) have a sell rating, reflecting broad institutional pessimism on near-term prospects
  • Stock has declined 36% over the past 1 year, indicating severe negative momentum and possible further downside
  • PE ratio of 40.8x is expensive for a company delivering only 1% TTM revenue growth, implying significant multiple compression risk
  • Trading at 8.43x price-to-book value, well above sector averages, leaving limited margin of safety
  • 3-year stock CAGR of -19% shows sustained value destruction over a meaningful time horizon
  • TTM sales growth has decelerated sharply to just 1% from a 5-year CAGR of 16%, suggesting demand headwinds in key verticals
  • Last year ROE dropped to 24% from 3-year average of 29%, indicating declining return efficiency

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Positives 6
  • Strong Q4 PAT up 27.8% Jun 01

    Q4 FY26 profit after tax jumped 27.8% to ₹220.35 crore; revenue from operations rose 9.4% to ₹993.75 crore YoY.

  • AI partnership with Sky delivers Jun 24

    NEURON platform collaboration with Sky achieved 30% improved operational efficiency, 50% faster change lead times, and 60-70% cost efficiencies in autonomous network transformation.

  • AnaTel AI MedTech platform launched May 27

    Launched AnaTel with OpenAna to cut SaMD development timelines from 8 weeks to 72 hours and improve productivity by up to 60%, unveiled at DeviceTalks Boston 2026.

  • ViTel Material Intelligence for MedTech May 26

    Launched ViTel with Viridium AI for medical device manufacturers, addressing sourcing risks, compliance readiness, and material intelligence across the enterprise.

  • ₹75/share dividend approved Jun 24

    Shareholders approved ₹75 per share dividend at 37th AGM on June 24; payment on or after June 30, 2026.

  • 66.2% renewable energy achieved Jun 01

    BRSR filing confirms 66.2% renewable energy use, 50% carbon reduction vs 2021 benchmark achieved, zero fines, targeting carbon neutrality by 2030.

Neutral 3
  • Trading window closed for Q1 Jun 19

    Trading window closed from June 24 ahead of Q1 FY26 results; reopens 48 hours after results are declared.

  • 37th AGM held June 24 Jun 01

    AGM scheduled and held on June 24, 2026 via video conferencing; all resolutions passed including related party transactions with Jaguar Land Rover for FY27.

  • Record date set June 10 Jun 01

    June 10, 2026 fixed as record date for dividend entitlement; register of members closed June 11-24.

TL;DR: Tata Elxsi is executing well with strong Q4 FY26 financials (PAT +27.8%, revenue +9.4%) and a healthy ₹75 dividend. The company is aggressively building AI-led platforms across MedTech (AnaTel, ViTel) and telecom (NEURON with Sky), positioning itself in high-growth regulated domains. No visible headwinds emerged in the recent news cycle. The upcoming Q1 FY26 results will be key to confirming whether the growth momentum in media/communications (32.7% of revenue) and transportation segments is sustaining.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
838
850
882
914
906
926
955
939
908
892
918
953
994
Expenses
588
599
618
644
645
674
689
693
701
705
725
731
749
Operating Profit
250
251
264
270
261
252
266
247
208
187
193
222
245
OPM %
30%
30%
30%
30%
29%
27%
28%
26%
23%
21%
21%
23%
25%
Other Income
26
22
31
35
34
32
64
40
43
38
49
-50
51
Interest
4
4
6
6
5
5
5
5
5
5
4
4
4
Depreciation
21
21
25
25
28
27
27
26
25
24
23
23
23
PBT
250
248
264
274
262
252
299
256
221
196
215
146
268
Tax %
19%
24%
24%
25%
25%
27%
23%
22%
22%
26%
28%
26%
18%
Net Profit
202
189
200
206
197
184
229
199
172
144
155
109
220
EPS in Rs
32.36
30.32
32.12
33.15
31.62
29.56
36.84
31.95
27.68
23.18
24.85
17.48
35.37
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
849
1,075
1,237
1,386
1,597
1,610
1,826
2,471
3,145
3,552
3,729
3,757
Expenses
672
827
964
1,039
1,181
1,266
1,303
1,704
2,182
2,505
2,755
2,909
Operating Profit
177
248
274
347
416
344
524
767
962
1,047
974
848
OPM %
21%
23%
22%
25%
26%
21%
29%
31%
31%
29%
26%
23%
Other Income
4
12
18
43
43
58
40
45
74
122
179
88
Interest
1
1
1
1
1
7
7
10
17
21
20
18
Depreciation
25
23
27
25
25
43
44
55
81
99
105
94
PBT
156
236
264
364
433
352
512
745
938
1,049
1,028
825
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
EPS in Rs
16.52
24.85
28.05
38.54
46.56
41.12
59.11
88.26
121
127
126
101
Div. Payout %
33%
28%
29%
29%
29%
40%
81%
48%
50%
55%
60%
74%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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%

Shareholding Pattern

As of Mar 2026
Promoters 43.90%
Public 29.27%
DIIs 11.39%
FIIs 11.09%
Others 4.36%
Total 100.01%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
44.53%
44.53%
44.53%
44.32%
44.08%
43.92%
43.92%
43.92%
43.92%
43.92%
43.92%
43.92%
43.92%
43.92%
43.91%
43.91%
43.91%
43.91%
43.90%
43.90%
43.90%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
13.81%
0.00%
14.56%
13.67%
13.65%
13.27%
12.73%
12.74%
12.53%
8.57%
11.09%
DIIs
4.68%
5.29%
4.53%
5.31%
4.80%
4.10%
3.78%
3.43%
3.55%
4.08%
4.81%
5.55%
6.05%
6.25%
7.39%
7.51%
8.54%
9.80%
10.38%
12.29%
11.39%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
32.22%
31.63%
32.33%
33.21%
32.37%
32.03%
32.19%
34.31%
34.23%
33.31%
33.06%
31.12%
31.30%
32.04%
30.92%
31.24%
30.70%
29.50%
28.91%
29.90%
29.27%
Others
18.57%
18.55%
18.61%
17.15%
18.76%
19.96%
20.11%
18.34%
18.31%
18.70%
4.40%
19.41%
4.17%
4.12%
4.13%
4.07%
4.12%
4.05%
4.28%
5.34%
4.36%
No. of Shareholders
0
1,91,909
2,26,048
3,21,339
3,97,296
4,13,752
4,60,566
4,96,548
5,82,903
5,62,362
5,66,920
5,16,330
5,37,460
5,74,515
5,50,841
5,72,719
5,89,967
5,79,310
5,78,736
5,73,312
5,66,988

Documents

Frequently Asked Questions about Tata Elxsi Ltd

What does Tata Elxsi Ltd do?
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, valid...
Where is Tata Elxsi Ltd (TATAELXSI) listed?
Tata Elxsi Ltd is listed on the Indian stock exchanges. It is listed on NSE: TATAELXSI and BSE: 500408. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Tata Elxsi Ltd belong to?
Tata Elxsi Ltd operates in the Information Technology sector within the IT - Software industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Tata Elxsi Ltd?
Tata Elxsi Ltd has a market capitalisation of approximately ₹25261.31 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Tata Elxsi Ltd?
The Price-to-Earnings (PE) ratio of Tata Elxsi Ltd is 39.93. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Tata Elxsi Ltd?
Over the past 52 weeks, Tata Elxsi Ltd has traded between a low of ₹3,926.1 and a high of ₹6,439.5. This range helps investors understand the stock's price volatility and recent trading levels.
Does Tata Elxsi Ltd pay dividends?
Yes, Tata Elxsi Ltd has a dividend yield of 1.86%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Tata Elxsi Ltd?
Tata Elxsi Ltd has a Return on Equity (ROE) of 36.00%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Tata Elxsi Ltd on Tapetide?
On Tapetide, you can view Tata Elxsi Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

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]

Website tataelxsi.com
CEO Mr. Manoj Raghavan
Employees 11,973
Listed 2003-09-17
Face Value ₹ 10
Issued Size 6,22,95,229

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