Tata Elxsi
Tata Elxsi
Information Technology F&OKey Fundamentals
SmallcapComputer Software & ConsultingInformation TechnologyTapetide Score
Data-driven rating, 0–100. How it works →
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
anthropic claude-opus-4.6 2d agoTata Elxsi Ltd, with a market cap of ₹21,099 Cr, is a nearly debt-free IT design and technology services company that has delivered strong long-term returns (10-year sales CAGR of 13%, profit CAGR of 16%) but is currently experiencing a sharp slowdown with TTM sales growth at just 5% and profit declining 5% YoY. The stock has corrected 41% over the past year, trading at a PE of 32.4x with a 3-year ROE of 28.6%.
- Company is virtually debt-free, providing financial flexibility and resilience during downturns with a negligible debt-to-equity ratio
- Strong long-term return on equity track record with 5-year ROE of 32% and 10-year ROE of 32%, indicating consistently efficient capital deployment
- Healthy dividend payout ratio of 63.0% with a current dividend yield of 2.2%, attractive relative to most IT peers
- Robust long-term compounding with 10-year sales CAGR of 13% and 10-year profit CAGR of 16%, demonstrating sustained business growth over a full cycle
- 5-year compounded sales growth of 16% and profit growth of 14% reflect a solid medium-term growth trajectory despite recent deceleration
- Current PE of 32.4x is well below its historical premium multiples, following a 41% stock price correction over the past year which has compressed valuations
- Price-to-book ratio of 6.98x, while elevated, is supported by the high ROE profile of 24-32%, indicating the business generates returns well above its cost of equity
- TTM revenue growth has decelerated sharply to just 5%, a significant drop from the 5-year CAGR of 16%, signaling a meaningful slowdown in demand
- TTM profits have turned negative at -5% growth, with 3-year profit CAGR also negative at -3%, indicating earnings are contracting rather than just decelerating
- Stock has destroyed significant value with 1-year return of -41% and 3-year CAGR of -23%, reflecting sustained negative market sentiment
- ROE has deteriorated from a 5-year average of 32% to 24% in the last year, a decline of 8 percentage points suggesting weakening profitability
- Even after correction, PE of 32.4x remains elevated for a company delivering negative profit growth, implying the stock still prices in a recovery that may not materialise quickly
- 3-year compounded sales growth of only 6% suggests the slowdown is not a single-quarter blip but a multi-year structural deceleration from the 16% five-year trend
- Market cap of ₹21,099 Cr on declining earnings means the valuation is dependent on a growth re-acceleration, creating downside risk if the slowdown persists
- 5-year stock CAGR of -7% indicates that even medium-term investors have seen capital erosion, despite the company's strong fundamentals historically
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 3h ago- eVTOL partnership with Sarla Aviation Sep 1
Tata Elxsi signed MoU with Sarla Aviation to co-develop Shunya, India's first indigenous eVTOL aircraft, covering avionics, software integration, and certification support.
- Strategic investment in Kavia AI Sep 10
Tata Elxsi invested in Silicon Valley-based Kavia AI through its STEP.UP program to scale AI-driven software engineering. The two companies have collaborated for one year on enterprise engineering use cases addressing brownfield software complexity.
TL;DR: Recent news flow for Tata Elxsi is light but directionally positive, with the company expanding its AI capabilities via the Kavia AI investment and entering the emerging eVTOL space through the Sarla Aviation partnership. No material headwinds surfaced in this period. The strategic moves signal continued focus on high-growth verticals like GenAI-driven engineering and urban air mobility, though near-term revenue impact from these initiatives remains to be seen.
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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46 extracted metrics + investor summaries across FY15–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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