Tata Elxsi Limited

TATAELXSI.NS

Information Technology Services · Technology

Price

₹3781.00

+66.00 (+1.78%)

Market Cap

₹235.55B

Exchange

National Stock Exchange of India

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 9, 2026 · filings through Jun 30, 2026

Tata Elxsi is an Indian technology and design services company that helps other businesses build better products using software, engineering, and creative design. Its main customers are companies in the automotive, media, healthcare, and communications industries — for example, it helps carmakers add software features to connected and electric vehicles, and helps broadcasters build streaming platforms. It is part of the Tata Group, one of India's largest and most respected conglomerates.

The company earns money by charging clients fees for engineering services, software development, and design work — essentially selling skilled labor and expertise on long-term contracts. Tata Elxsi operates primarily out of India but serves clients across Europe, North America, and Asia, generating a large share of revenue from overseas. Its moat comes from deep technical specialization and the trusted Tata brand name. The biggest growth driver is rising demand for software-defined vehicles, but the company faces risk from slowing automotive industry spending and intense competition from larger global IT services firms.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+9.4% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+27.8% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$760M/ year

2.0% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

44.9%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$0 cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Tata Elxsi Limited is growing revenue at 9% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 62.3M (2022) → 62.3M (2026)

Score breakdown

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Quality

Gross Margin

32.2%

Modest — 32.2% gross margin

Operating Margin

19.0%

Healthy — 19.0% operating margin

ROCE

6.4%

Weak — 6.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+5.2%

Slow sales growth (+5.2% YoY)

EPS YoY

-12.2%

Earnings shrinking (-12.2% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

Weak — only 0% of profit becomes cash

FCF Margin

0.0%

Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

64.05x

Comfortably covers interest (64.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

36.0x

Pricey — P/E 36.0

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+10.8

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (36.0 → 25.1)

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Dividends

Dividend Yield

2.04%

Moderate income — 2.04% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth

+132.9%

Dividend growing fast (132.9% YoY)

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