Tata Elxsi Limited (TATAELXSI)
Mid CapIT stocks · Mid cap · NSE
Tata Elxsi is a global provider of design and technology services across Transportation, Media, Communications, and Healthcare & Medical Devices. It offers integrated services from research to deployment, leveraging digital technologies like IoT, Cloud, Mobility, VR, and AI to help clients reimagine products and services.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/1 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Average · 32/100margin compression · Rev +14% YoY · PAT +19% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,021 Cr | +14.5% | +2.7% |
| EBITDA | ₹216 Cr | +15.5% | -11.8% |
| Operating margin | 21.0% | +0 bps | -400 bps |
| PAT | ₹171 Cr | +18.8% | -22.3% |
| PAT margin | 16.8% | +61 bps | -538 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q1 FY27 revenue crosses Rs. 1,000 Cr, up 14.5% YoY, driven by strong deal execution. PAT grew 18.2% YoY but declined 22.6% QoQ, with EBITDA margin contracting to 21.2% from 24.6% QoQ.
While YoY revenue growth remains healthy, significant QoQ declines in PBT and PAT, coupled with margin contraction, indicate pressure from ongoing investments in AI and talent. Management's focus on future-proofing with AI is strategic, but its impact on near-term profitability needs close monitoring.
Operating Revenue by Vertical (SDS)
Latest issuer-disclosed distribution across 4 reported categories.
Transportation Business Momentum
Driven by accelerated OEM engagements and strategic wins in off-road and aerospace segments.
Media & Communications Expansion
Continued ramp-up of key engagements and expanded programs with global operators, broadcasters, and device OEMs.
Design-led and AI-enabled Engineering
Increasing relevance of capabilities in chosen industries, enhancing customer value creation.
Strategic Long-Term Deals
Aided strong QoQ growth in Media and Communications through strategic long-term deals and ramp-ups.
AI-Powered Mobility Shift
Scaling offerings to help Auto OEMs pivot to connected, multi-powertrain, and AI-powered mobility.
Industry Reshaped by AI
FY27 is a year of future focus, preparing for a world reshaped by AI with targeted investments.
New AI-Native Platforms
Launched AnaTel for healthcare software development and ViTel for Med-Tech material intelligence, co-developed with partners.
Muted Healthcare Industry
Healthcare and Life Science grew 1.7% QoQ amidst a muted industry environment.
Investments Impacting Margins
Targeted investments in specialized talent, AI platforms, tools, and infrastructure are being made, impacting current margins.
Talent Attrition
Attrition increased to 16.0% in Q1FY27 from 15.8% in Q4FY26.
Execution of AI Strategy
Failure to effectively execute on significant investments in AI platforms and talent could hinder future growth and profitability.
Client Concentration
Top 5 clients contribute 49.2% and Top 10 clients contribute 59.7% of revenue, posing concentration risk.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison provides a clear view of underlying business growth and market traction, especially in a services business. QoQ is critical for assessing sequential momentum, the immediate impact of operational decisions, and the trajectory of margins and profitability in an IT services context.
Revenue from Operations
Rs. 1,021.1 Cr, 2.8% QoQ, 14.5% YoY
Revenue Growth (Constant Currency)
1.3% QoQ, 6.5% YoY
EBITDA Margin
21.2% (Q1FY27) vs 24.6% (Q4FY26) vs 20.9% (Q1FY26)
PAT
Rs. 170.6 Cr, -22.6% QoQ, 18.2% YoY
Future Focus on AI
FY27 marks a year of future focus, preparing and equipping the company for a world reshaped by AI.
Strategic AI Investments
Making targeted investments in specialized talent, AI-powered platforms, tools, and infrastructure to pivot to a Domain + AI future.
Sustainable Growth & Margin Protection
Focussed on sustainable growth, deepening customer engagements, winning strategic long-term deals, and protecting/improving industry-leading margins.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin | 21.2% | Stabilization or improvement in margins, indicating effective absorption of AI investments and operational efficiencies. |
| Headcount Growth | 11,336 (Q1FY27, declined QoQ) | Resumption of headcount growth, signaling strong demand and successful talent acquisition for new AI-led initiatives. |
| Attrition Rate | 16.0% | Reduction in attrition, indicating improved talent retention amidst competitive market conditions and internal investments. |
| Healthcare & Life Sciences Growth | 1.7% QoQ | Acceleration in growth for this segment, indicating recovery from the muted industry environment and traction for new AI-native platforms. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
A 50 M Euro multi-year SDV and software engineering deal with a European Automotive leader will ramp up in Q1’26 and beyond.
"that will ramp up in Q1’26 and beyond"
A 50 M Euro multi-year SDV and software engineering deal with a European Automotive leader will ramp up in Q1’26 and beyond.
"that will ramp up in Q1’26 and beyond"
Trend score and candlestick chart
46NeutralSMA20 +1.8% / mo · MACD − · near 52W low
Technical chart
TATAELXSIdaily · 1Y · AUTO-19.1%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 40.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 rising (~1.8% over last month) — short-term momentum positive.
- RSI(14) at 40 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 40% off 52W high · 6% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 13.4% below the 30-week proxy.
- The 50-DMA is below the 30-week proxy and its slope is falling -5.5%.
- Both 3-month and 6-month returns are negative.
Valuation & score drivers
U-Score 55 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 55 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Quality contributes 20/20 to the score.
- Balance sheet contributes 10/15 to the score.
Main drags
- Fair-value margin of safety is negative at -542.1%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Cash flow is weaker at 5/10; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +4 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 94th percentile of the scored universe and 89th percentile within IT. Main check: results consistency is weak at 53/100.
High Trust Lite: Promoter pledge is zero. Key concern: 2 latest quarters had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · IT: 89th pctile, median 69 · Mid: 83rd pctile, median 76
77 documents have extracted text, but claim history is not strong enough yet.
1 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.5%.
- ▸7 years of positive FCF.
- ▸Debt/equity is 0.00.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 217.00
- P/B
- 78.20
- EV/EBITDA
- 108.67
- Market Cap
- 22168.00Cr
Profitability
- ROE
- 39.30%
- ROCE
- 60.00%
- ROA
- 21.89%
- Dividend Y
- 2.11%
Growth (CAGR)
- Revenue 5Y
- 17.00%
- EPS 5Y
- 16.00%
- Revenue 3Y
- 16.00%
- EPS 3Y
- 43.00%
Balance Sheet
- Debt/Equity
- 0.00
- Interest Coverage
- 178.00×
- Altman Z
- 10.06
- Book Value
- 45.50
Cash Flow
- FCF Yield
- 0.51%
- FCF Positive Y
- 7/5
- OCF
- 143.00 Cr
- EPS TTM
- 16.38
Shareholding
- Promoter Hold
- 43.90%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 8%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.