TATAELXSI
Mid CapTata Elxsi Limited
IT
Incorporated in 1989, Tata Elxsi is a leading 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 differentiate 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 argues for patience, 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 31 Mar 2026
Good · 70/100Rev +9% YoY · PAT +28% YoY · margin expansion · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹994 Cr | +9.5% | +4.3% |
| EBITDA | ₹245 Cr | +17.8% | +10.4% |
| Operating margin | 25.0% | +200 bps | +200 bps |
| PAT | ₹220 Cr | +27.9% | +101.8% |
| PAT margin | 22.1% | +319 bps | +1069 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Tata Elxsi reported Q4 FY26 operating revenue of Rs. 993.8 Cr, up 4.2% QoQ and 9.4% YoY. PBT margin improved to 25.6% (up 143 bps QoQ). Media & Communications saw strong 5.6% QoQ CC growth, while Transportation consolidated after Q3's strong growth. Healthcare declined 10.5% QoQ.
Q4 FY26 results show sequential revenue and margin improvement, driven by Media & Communications. Strategic wins in SDV and AI across verticals are positive, but the overall FY26 performance indicates a slowdown compared to previous years, with some segments facing YoY CC declines. The focus on GenAI and design-led offerings is key for future growth.
Revenue by SDS Verticals (Q4 FY26 Constant Currency)
Latest issuer-disclosed distribution across 4 reported categories.
Software-Defined Vehicles (SDV)
Strategic shift toward SDV and OEM-focused engagements, with OEM revenue now accounting for 77% of our transportation business.
Generative AI (GenAI) & AI-enabled Offerings
Advanced enterprise-wide GenAI adoption with DevStudio.ai and strategic AI partnerships, embedding responsible AI across engineering, design, and delivery.
Network Transformation
Chosen as strategic partner by a major European Telco to lead its 3-year network transformation journey towards an autonomous network.
MedTech Innovation
Launched an Offshore Development Centre for Terumo, Japan’s leading MedTech company, aimed at accelerating innovation and development across cardiac and vascular medical devices.
Offshore Development Centre for Terumo
Inaugurated the ‘Terumo–Tata Elxsi Offshore Development Center’ to support development of Terumo’s cardiac and vascular solutions.
Cloud HIL Center for Suzuki Motors
Set up an exclusive Cloud HIL center in Thiruvananthapuram, India for Suzuki Motors, the second engineering center under the partnership.
Global Technology Centre for Bayer
Launched a Global Technology Centre for radiology medical devices for Bayer to co-develop advanced radiology devices.
Digital Transformation & AI Adoption
Advanced enterprise-wide GenAI adoption and focus on scaling differentiated design-led and AI-enabled offerings.
SDV Shift in Automotive
Multi-year deals highlight strategic shift toward SDV and OEM-focused engagements, with OEM revenue now 77% of transportation business.
Network Monetization
Partnership with GSMA to help mobile operators secure new revenue streams by monetizing their networks through Standardized APIs.
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.
QoQ comparison is crucial for assessing sequential momentum, especially in the IT services sector where project ramp-ups and deal executions impact quarterly performance. YoY comparison provides context for annual growth trends and seasonality.
Operating Revenue (Q4 FY26)
Reported Revenue at Rs. 993.8 Cr, 4.2% QoQ, 9.4% YoY. Revenue growth of 0.9% QoQ in CC, 1.0% YoY in CC.
PBT Margin (Q4 FY26)
PBT margin at 25.6%, improved by 143 basis points over the previous quarter. PBT at Rs. 267.8 Cr, 10.7% QoQ, 20.9% YoY.
PAT (Q4 FY26)
PAT at Rs. 220.4 Cr, 23.1% QoQ, 27.8% YoY.
EBITDA Margin (Q4 FY26)
EBITDA at 24.6%.
Focus on Differentiated Offerings
We remain focused on scaling our differentiated design-led and AI-enabled offerings.
Operational Leverage & Margins
Strengthening operational leverage, and driving sustainable growth and healthy margins.
SDV & OEM Focus
These multi-year deals highlight our strategic shift toward SDV and OEM-focused engagements.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Transportation Business Growth (CC QoQ) | +0.2% | Sustained sequential growth and ramp-up of new SDV/OEM deals. |
| Media & Communications Business Growth (CC QoQ) | +5.6% | Continued strong sequential growth and impact of network transformation deals. |
| PBT Margin | 25.6% (Q4 FY26) | Maintenance or further improvement in PBT margins through operational leverage. |
| Attrition Rate | 15.8% (Q4 FY26) | Stabilization or reduction in attrition to manage talent costs and project execution. |
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"
Trend score and candlestick chart
43NeutralSMA20 -13.8% / mo · near 52W low
Technical chart
TATAELXSIweekly · 3Y-38.7%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 42.
- SMA20 falling (~16.0% over last month) — short-term momentum negative.
- RSI(14) at 42 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 34% off 52W high · 8% 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.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
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 -622.5%.
- 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: +0 points.
Factor attribution
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 87th percentile of the scored universe and 83rd percentile within IT. Main check: results consistency is weak at 27/100.
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: 83rd pctile, median 68 · Mid: 63rd pctile, median 76
102 documents indexed, 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 0.4%.
- ▸7 years of positive FCF.
- ▸Debt/equity is 0.00.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸1/4 latest quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 260.00
- P/B
- 93.56
- EV/EBITDA
- 129.96
- Market Cap
- 26512.00Cr
Profitability
- ROE
- 39.30%
- ROCE
- 60.00%
- ROA
- 21.89%
- Dividend Y
- 1.76%
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
- 0.43%
- FCF Positive Y
- 7/5
- OCF
- 143.00 Cr
- EPS TTM
- 16.38
Shareholding
- Promoter Hold
- 43.90%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 11%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%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.