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
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39 extracted metrics + investor summaries across FY15–FY26.
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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 7.70 times its book value
Growth Rate
AI Analysis — Bull vs Bear
Tata Elxsi Ltd is a nearly debt-free IT design and technology services company with a market cap of ₹23,360 Cr trading at a PE of 35.5x. While the company has delivered strong historical ROE averaging 32% over 5 years, recent growth has decelerated sharply with TTM sales growth at just 5% and profit declining 5% TTM, contributing to a 35% stock price decline over the past year.
- Company is virtually debt-free, providing financial flexibility and resilience during downturns
- Strong long-term ROE track record of 32% over 5 years and 29% over 3 years, indicating efficient capital deployment
- Healthy dividend payout ratio of 63%, with current dividend yield of 2.02% — relatively attractive for an IT services company
- 10-year compounded sales CAGR of 13% and profit CAGR of 16% demonstrate a sustained long-term growth trajectory
- 5-year compounded profit growth of 14% shows the company's ability to scale profitably over medium-term cycles
- 10-year stock CAGR of 16% reflects long-term wealth creation despite recent correction
- Stock has corrected 35% in the last year, potentially compressing valuations from peak levels for those who believe growth will reaccelerate
- TTM profit growth has turned negative at -5%, signaling earnings contraction in the most recent period
- Stock is trading at 7.63x price-to-book value, a premium valuation that demands consistently high growth to justify
- TTM revenue growth has slowed dramatically to just 5%, down from a 5-year CAGR of 16%
- ROE has declined from a 5-year average of 32% to 24% in the last year, indicating deteriorating return profile
- 3-year compounded profit growth is -3%, showing sustained earnings pressure beyond a single quarter
- PE ratio of 35.5x remains elevated despite earnings deceleration, suggesting limited margin of safety
- Stock price CAGR is negative across 1-year (-35%) and 3-year (-19%) periods, reflecting sustained investor de-rating
- 3-year sales CAGR of just 6% versus 10-year CAGR of 13% indicates a structural slowdown in revenue momentum
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Healthcare MoU with SCTIMST Jul 27
Tata Elxsi signed an MoU with Sree Chitra Tirunal Institute for Medical Sciences and Technology (SCTIMST) to collaborate on next-generation healthcare solutions, combining clinical expertise with advanced engineering capabilities.
- Tax penalty order under review Jul 20
Tata Elxsi received an income tax penalty order of Rs 67,29,774 from the Commissioner of Income Tax. The company stated the order is under review.
TL;DR: Tata Elxsi is expanding its healthcare vertical through a strategic collaboration with a premier medical research institute, signaling diversification beyond its core automotive and media segments. The tax penalty of ~Rs 67.3 lakh is immaterial relative to the company's scale. No significant headwinds are visible in recent news, though the limited news flow makes it difficult to assess broader momentum.
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
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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]