Tata Consultancy Services Ltd.
NSE: TCS
Technology · Information Technology Services
₹2,530.00 last close on 23 Oct 2026 +0.92%
Research updated
Tata Elxsi Ltd.
NSE: TATAELXSITechnologySoftware - Application
- Last close
- ₹3,700.00
- Day change
- −₹146.80 (−3.82%)vs
- Market cap
- ₹21,348 crIndian rupees
- Research updated
- 2 reports
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About Tata Elxsi
Tata Elxsi Ltd. is a prominent technology-driven company offering design and technology services across various industries. As a key player in the engineering sector, its primary function involves providing integrated solutions that span across various stages of product development and lifecycle management. Tata Elxsi excels in areas such as automotive engineering, broadcasting, communications, and healthcare. Notably, the company serves sectors heavily reliant on digital technologies and engineering expertise, ensuring competitive advancement through innovation. With its robust design and technology capabilities, Tata Elxsi supports the creation of cutting-edge products and services, enhancing client operations and consumer experiences. As part of the renowned Tata Group, this company plays a significant role in the global technology market, reinforcing India's position as a leader in delivering high-value tech solutions. Tata Elxsi Ltd. continues to impact the industry by consistently pushing boundaries in product engineering and digital solutions worldwide.
- Sector
- Technology
- Industry
- Software - Application
- Listing
- NSE: TATAELXSI
- Chief executive
- Mr. Manoj Raghavan
- Employees
- 11,046
- Headquarters
- Bengaluru, India
- ISIN
- INE670A01012
- Website
- tataelxsi.com
Public research · Report of
Business model & financial foundation
Tata Elxsi (NSE: TATAELXSI), Design-led engineering research and development services: revenue of ₹3,757 crore in FY26 (+0.8% on FY25), an EBITDA margin of 22.5%, net profit of ₹628.4 crore and net cash of ₹2,045 crore.
- Revenue, FY26 (₹ crore)
- 3,757
- standalone
- Revenue growth, FY26
- +0.8%
- on FY25
- EBITDA margin, FY26
- 22.5%
- EBITDA (revenue less materials, employee, other expenses) / revenue
- Net profit, FY26 (₹ crore)
- 628.4
- to owners
- Return on equity, FY26
- 21.3%
- on average equity
- Net debt, FY26 (₹ crore)
- -2,045
- Net debt (negative = net cash), leases counted as debt
- Market capitalisation (₹ crore)
- 21,348
- at the close of 13 Oct 2026
Company profile
Tata Elxsi sells design, software and product engineering services to transportation, media and communications, and healthcare customers. Software Development and Services dominates revenue; Systems Integration and Support is a small statutory segment. Offshore delivery and fixed-price execution provide margin leverage, while concentrated OEM relationships and programme ramps drive demand.
| Item | Value |
|---|---|
| Legal name | Tata Elxsi Limited |
| Exchange and ticker | NSE: TATAELXSI; BSE: 500408 |
| ISIN | INE670A01012 |
| CIN | L85110KA1989PLC009968 |
| Sector | Technology |
| Industry | Design-led engineering research and development services |
| Headquarters | Bengaluru, India |
| Fiscal year end | March |
| Reporting basis and unit | standalone, in ₹ crore |
| Auditor | B S R & Co. LLP (since 2022) |
| Market capitalisation | ₹21,348 crore (13 Oct 2026) |
| Shares outstanding | 6.23 crore shares (FY26) |
| Price | ₹3,257 (close, 13 Oct 2026) |
| 52-week range | ₹2,996 - ₹5,950 (to 13 Oct 2026) |
| Website | https://www.tataelxsi.com |
Corporate structure and shareholding
Parent: Tata Sons Private Limited.
No subsidiary is recorded.
No subsidiaries/JVs/associates. Minority strategic KAVIA AI investment announced September 2026; ownership percentage not disclosed.
| Shareholding (% of shares) | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|
| Promoter | 43.90% | 43.90% | 43.90% | |
| Promoter holding pledged | 0.00% | 0.00% | 0.00% | |
| Foreign institutions | 8.57% | 11.09% | 9.85% | |
| Domestic institutions | 12.29% | 11.39% | 11.04% | |
| of which mutual funds | 2.44% | 1.17% | 1.11% | |
| Retail | 29.90% | 29.27% | 30.48% | |
| Other | 5.34% | 4.35% | 4.73% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
Tata Elxsi is a standalone design-led engineering-services business: Software Development and Services (SDS) is the economic engine, with a small Systems Integration and Support business. Transportation, Media & Communications and Healthcare & Life Sciences drive demand; the operating model depends on offshore delivery, workforce utilisation, price/mix and client programme ramps. Q2 FY27 revenue was INR1,055.7cr, up 3.4% QoQ and 2.3% in constant currency.
| Segment | revenue, FY26 (₹ crore) | Share | segment result, FY26 (₹ crore) | Share | finance cost, FY26 (₹ crore) | Share |
|---|---|---|---|---|---|---|
| Software development & services (SDS) | 3,665 | 97.5% | 1,149 | 99.4% | ||
| System integration & support services (SIS) | 92.6 | 2.5% | 6.39 | 0.6% | ||
| Reconciling items (not an operating segment) | 16.2 | 100.0% |
Segments as the company reports them (standalone); each share is of the segments' sum.
| Peer | Why the dossier compares them |
|---|---|
| L&T Technology Services (LTTS) | Diversified listed ER&D delivery and engineering customer budgets. |
| KPIT Technologies (KPITTECH) | Direct automotive software-defined vehicle engineering overlap. |
| Tata Technologies (TATATECH) | Automotive product engineering, OEM spending and Tata group exposure. |
| Cyient (CYIENT) | Engineering lifecycle outsourcing; diversified mix requires normalization. |
| Sasken Technologies (SASKEN) | Embedded software and communications engineering; smaller-scale comparator. |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue from operations | 2,471 | 3,145 | 3,552 | 3,729 | 3,757 |
| Cost of revenue (vendor classification) * | 1,424 | 1,747 | 2,005 | 2,169 | 2,308 |
| Other operating costs (vendor classification) * | 270.1 | 360.7 | 374.3 | 439.5 | 424.1 |
| EBITDA (vendor classification) * | 812.6 | 1,038 | 1,167 | 1,153 | 1,040 |
| EBIT * | 754.8 | 953.7 | 1,069 | 1,047 | 841.3 |
| Finance costs (mainly lease interest) | 9.34 | 16.2 | 20.3 | 19.0 | 16.2 |
| Profit before tax | 745.5 | 937.5 | 1,049 | 1,028 | 825.1 |
| Tax expense (current + deferred) | 195.8 | 182.3 | 256.4 | 243.5 | 196.7 |
| Net profit for the year | 549.7 | 755.2 | 792.2 | 784.9 | 628.4 |
| Diluted EPS (₹) | 88.26 | 121.3 | 127.2 | 126.0 | 100.9 |
| Materials consumed incl. traded goods + inventory change | 193.3 | 239.8 | 275.8 | ||
| Employee benefits expense | 1,910 | 2,046 | 2,184 | ||
| Other expenses | 402.8 | 469.9 | 450.6 | ||
| EBITDA (revenue less materials, employee, other expenses) | 1,046 | 972.9 | 846.9 | ||
| Other income (net) | 122.0 | 179.3 | 184.0 | ||
| Depreciation and amortisation (incl. ROU) | 99.4 | 104.9 | 93.8 | ||
| Exceptional items (signed; negative = charge) | 0.00 | 0.00 | -95.7 | ||
| Minority interest | 0.00 | 0.00 | 0.00 | ||
| Share of associates/JVs | 0.00 | 0.00 | 0.00 | ||
| PAT attributable to owners | 792.2 | 784.9 | 628.4 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Total equity | 1,601 | 2,086 | 2,506 | 2,860 | 3,041 |
| Borrowings from lenders (excl. leases) | 138.5 | 182.3 | 0.00 | 0.00 | 0.00 |
| Cash and cash equivalents | 151.1 | 133.9 | 133.2 | 135.3 | 194.5 |
| Trade receivables (billed + unbilled) | 553.7 | 856.7 | 971.6 | 971.5 | 1,079 |
| Inventories | 0.57 | 0.39 | 1.11 | 0.00 | 0.00 |
| Trade payables (MSME + others) | 84.3 | 103.2 | 85.6 | 123.0 | 120.3 |
| Net property, plant and equipment (ex ROU/intangibles) | 14.2 | 22.6 | 192.3 | 154.1 | 127.1 |
| Capital work in progress | 22.1 | 6.98 | 2.15 | 1.62 | 0.00 |
| Total assets | 2,169 | 2,764 | 3,187 | 3,586 | 3,963 |
| Lease liabilities (current + non-current) | 224.0 | 192.3 | 162.3 | ||
| Current bank deposits excluding earmarked dividend/CSR | 1,247 | 1,454 | 1,455 | ||
| Bank deposits >12 months (incl. guarantee-linked deposits) | 156.9 | 358.4 | 557.7 | ||
| Net debt (negative = net cash), leases counted as debt | -1,314 | -1,756 | -2,045 |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Net cash generated from operating activities (after tax) | 402.1 | 382.1 | 701.2 | 812.0 | 664.0 |
| Free cash flow (vendor definition) * | 411.8 | 422.8 | 618.2 | 795.6 | 653.3 |
| Dividends paid (signed cash flow; outflow negative) | -298.9 | -264.7 | -377.4 | -435.9 | -467.1 |
| Capital expenditure (positive cash expenditure) | 71.2 | 63.7 | 83.0 | 16.3 | 10.7 |
| Lease repayment (gross cash including interest) | 49.8 | 61.2 | 65.9 | ||
| ROU depreciation (component of total D&A) | 44.1 | 47.5 | 49.3 | ||
| Lease reconciliation finance cost labelled paid | 19.6 | 17.5 | 14.5 | ||
| Lease principal (derived component of gross cash) | 30.2 | 43.7 | 51.4 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Shares outstanding * | 6.23 | 6.23 | 6.23 | 6.23 | 6.23 |
| Quarterly profit and loss (₹ crore) | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue from operations | 939.2 | 908.3 | 892.1 | 918.1 | 953.5 | 993.8 | 1,021 | 1,056 |
| Cost of revenue (vendor classification) * | 571.3 | 591.7 | 595.7 | 615.4 | 637.7 | 670.4 | ||
| Other operating costs (vendor classification) * | 121.3 | 108.9 | 109.7 | 115.8 | 111.5 | 134.7 | ||
| EBITDA (vendor classification) * | 286.5 | 250.7 | 225.2 | 268.3 | 295.2 | 257.4 | ||
| Operating EBIT (excl other income, before exceptional) | 220.6 | 183.0 | 162.4 | 169.9 | 199.4 | 221.3 | 193.7 | 207.8 |
| Finance costs | 4.65 | 4.59 | 4.56 | 4.04 | 3.52 | 4.11 | 2.72 | 3.57 |
| Profit before tax | 255.8 | 221.4 | 196.3 | 214.7 | 146.3 | 267.8 | 232.5 | 239.1 |
| Total tax expense | 56.8 | 49.0 | 52.0 | 59.9 | 37.4 | 47.4 | 61.9 | 68.8 |
| Net profit for the period | 199.0 | 172.4 | 144.4 | 154.8 | 108.9 | 220.4 | 170.6 | 170.3 |
| Diluted EPS (₹) | 31.94 | 27.68 | 23.18 | 24.85 | 17.48 | 35.37 | 27.38 | 27.34 |
| Cost of materials consumed incl. inventory change | 56.0 | 74.2 | 66.5 | 72.4 | 66.4 | 70.5 | 82.3 | 73.4 |
| Employee benefits expense | 515.2 | 517.6 | 529.1 | 538.8 | 549.0 | 567.2 | 588.1 | 620.1 |
| Other expenses | 121.3 | 108.9 | 109.7 | 113.6 | 115.8 | 111.5 | 134.7 | 130.7 |
| EBITDA (operating, excl. other income) | 246.6 | 207.7 | 186.7 | 193.3 | 222.2 | 244.6 | 216.0 | 231.4 |
| Other income (net) | 39.9 | 43.1 | 38.5 | 48.9 | 46.0 | 50.6 | 41.5 | 34.9 |
| Depreciation and amortisation | 26.0 | 24.7 | 24.3 | 23.4 | 22.8 | 23.3 | 22.3 | 23.7 |
| Exceptional items (signed; charge negative) | 0.00 | 0.00 | 0.00 | 0.00 | -95.7 | 0.00 | 0.00 | 0.00 |
| Profit attributable to owners | 199.0 | 172.4 | 144.4 | 154.8 | 108.9 | 220.4 | 170.6 | 170.3 |
| Minority interest (none: no subsidiaries) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Share of associates/JVs (none) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Current tax expense | 63.0 | 50.8 | 58.1 | 65.8 | 69.3 | 48.0 | 57.4 | 71.4 |
| Deferred tax expense (credit negative) | -6.15 | -1.78 | -6.13 | -5.87 | -32.0 | -0.62 | 4.43 | -2.61 |
Standalone, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 35.3% | 27.3% | 13.0% | 5.0% | 0.8% |
| EBITDA margin | 29.5% | 26.1% | 22.5% | ||
| Net margin | 22.3% | 21.0% | 16.7% | ||
| Return on equity | 34.5% | 29.3% | 21.3% | ||
| Return on capital employed | 47.7% | 47.6% | 44.8% | 39.0% | 28.5% |
| Return on assets | 26.6% | 23.2% | 16.7% | ||
| Net debt (₹ crore) | -1,314 | -1,756 | -2,045 | ||
| Net debt / EBITDA | -1.26x | -1.80x | -2.41x | ||
| Interest cover | 80.8x | 58.9x | 52.8x | 55.2x | 51.8x |
| Asset turnover | 1.27x | 1.28x | 1.19x | 1.10x | 1.00x |
| Receivable days | 82 | 99 | 100 | 95 | 105 |
| Inventory days (on revenue) | 0 | 0 | 0 | 0 | 0 |
| Payable days (on revenue) | 12 | 12 | 9 | 12 | 12 |
| Cash conversion | 0.89x | 1.03x | 1.06x | ||
| Capex intensity | 2.9% | 2.0% | 2.3% | 0.4% | 0.3% |
| Free cash flow (₹ crore) | 331.0 | 318.4 | 618.2 | 795.6 | 653.3 |
| Dividend payout | 47.6% | 55.5% | 74.3% | ||
| EPS, diluted (₹) | 88.26 | 121.3 | 127.2 | 126.0 | 100.9 |
| Book value per share (₹) | 257.1 | 334.9 | 402.3 | 459.2 | 488.2 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- EBITDA margin: EBITDA (revenue less materials, employee, other expenses) / revenue.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on capital employed: EBIT / average equity plus borrowings.
- Return on assets: net profit to owners / average total assets.
- Net debt (₹ crore): Net debt (negative = net cash), leases counted as debt.
- Net debt / EBITDA: net debt / EBITDA (revenue less materials, employee, other expenses).
- Interest cover: EBIT / finance cost.
- Asset turnover: revenue / average total assets.
- Receivable days: receivables / revenue x 365.
- Inventory days (on revenue): inventory / revenue x 365.
- Payable days (on revenue): payables / revenue x 365.
- Cash conversion: cash from operations / net profit to owners.
- Capex intensity: capital expenditure / revenue.
- Free cash flow (₹ crore): cash from operations less capital expenditure.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Diluted EPS).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 2, information to 13 Oct 2026); market data at the close of 13 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
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Report history
Reports on Tata Elxsi
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Prices are the last close on the NSE, 23 Oct 2026. Research from Mool’s report of 13 Oct 2026; page updated 25 Oct 2026.
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