Tata Elxsi Limited (TATAELXSI) AI Stock Analysis

• Market Cap: ₹247.77B
• Dividend Yield: 1.38%
• Average Volume (3M): 15.20K
• Price to Earnings (P/E): 74.9
• Beta (1Y): 1.28
• Revenue Growth: -1.19%
• EPS Growth: -17.92%
• Country: IN
• Employees: 12,969
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 17.50
• Shares Outstanding: 62,296,684
• 10 Day Avg. Volume: 16,408
• 30 Day Avg. Volume: 15,195
• PEG Ratio: -43.37
• Price to Book (P/B): 11.04
• Price to Sales (P/S): 8.47
• P/FCF Ratio: 39.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹3,900.00
• Price Target Upside: -27.94% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 102.86
• Revenue Forecast (FY): ₹37.59B

• Rating: 57 Neutral
• Price Target: ₹4,116.00 ▼(-23.95% Downside)
• Action: Downgraded Date: 03/31/26
• Date: Action: Downgraded 03/31/26

The score is held up by strong financial fundamentals (low leverage, solid cash generation, and generally healthy margins), but is meaningfully weighed down by weak technical momentum (below major moving averages with negative MACD) and a demanding valuation (P/E ~74.95) that raises downside risk if operating performance—especially EBIT—doesn’t rebound.

Positive Factors

Strong balance sheet

Low leverage and a high equity ratio provide durable financial flexibility: supports multi-year R&D engagements, cushions cyclical client demand, enables strategic hiring or M&A, and reduces refinancing risk. This stability underpins long-term ability to invest in domain capabilities and retain clients.

Negative Factors

Recent revenue and EPS contraction

Negative top-line and sharp EPS contraction signal weakening demand or margin pressure that can persist if not addressed. Over several quarters this can constrain hiring, slow investment in proprietary tools, and reduce ability to win large, multi-year contracts—affecting long-term growth trajectory.

Tata Elxsi Limited Business Overview & Revenue Model

Company Description

Tata Elxsi Limited provides product design and engineering, and systems integration and support services in India, the United States, Europe, and internationally. The company operates through two segments, Software Development and Services; and Sy...

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Tata Elxsi Limited provides product design and engineering, and systems integration and support services in India, the United States, Europe, and internationally. The company operates through two segments, Software Development and Services; and Sy...

How the Company Makes Money

Tata Elxsi makes money primarily by delivering professional services and solutions under contracts with enterprise customers, typically recognized as revenue based on time-and-materials billing and/or fixed-price, milestone-based project delivery ...

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Tata Elxsi makes money primarily by delivering professional services and solutions under contracts with enterprise customers, typically recognized as revenue based on time-and-materials billing and/or fixed-price, milestone-based project delivery ...

Tata Elxsi Limited Financial Statement Overview

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	36.58B	37.29B	35.52B	31.45B	24.71B	18.26B
Gross Profit	12.64B	14.43B	11.50B	10.58B	10.46B	5.77B
EBITDA	9.56B	11.52B	11.69B	10.36B	8.11B	5.63B
Net Income	6.71B	7.85B	7.92B	7.55B	5.50B	3.68B
Balance Sheet
Total Assets	34.56B	35.86B	31.87B	27.64B	21.69B	17.17B
Cash, Cash Equivalents and Short-Term Investments	12.69B	15.89B	13.80B	11.81B	9.56B	8.53B
Total Debt	1.69B	1.92B	2.24B	1.82B	1.39B	732.10M
Total Liabilities	7.53B	7.26B	6.81B	6.78B	5.68B	3.65B
Stockholders Equity	27.03B	28.61B	25.06B	20.86B	16.01B	13.52B
Cash Flow
Free Cash Flow	0.00	7.96B	6.18B	4.23B	4.12B	3.99B
Operating Cash Flow	0.00	8.12B	7.01B	4.87B	4.83B	4.37B
Investing Cash Flow	0.00	-3.08B	-2.70B	-2.02B	-1.08B	-4.38B
Financing Cash Flow	0.00	-4.99B	-4.28B	-3.03B	-3.26B	-1.26B

Tata Elxsi Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5412.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TATAELXSI, the sentiment is Negative. The current price of 5412.3 is above the 20-day moving average (MA) of 4253.58, above the 50-day MA of 4803.55, and below the 200-day MA of 5428.97, indicating a bearish trend. The MACD of -192.57 indicates Negative momentum. The RSI at 32.08 is Neutral, neither overbought nor oversold. The STOCH value of 36.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TATAELXSI.

Tata Elxsi Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPHASIS	73 Outperform	₹391.93B	30.05	―	1.94%	8.73%	11.33%
TATATECH	70 Outperform	₹206.83B	982.29	―	1.26%	0.29%	7.17%
KPITTECH	66 Neutral	₹174.07B	59.84	―	0.69%	13.34%	5.98%
CYIENT	64 Neutral	₹83.65B	33.59	―	2.62%	1.68%	-12.95%
LTTS	62 Neutral	₹330.71B	39.06	―	1.19%	14.88%	-2.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TATAELXSI	57 Neutral	₹247.77B	74.95	―	1.38%	-1.19%	-17.92%

Tata Elxsi Limited Corporate Events