Tata Elxsi Ltd.
IT · NSE
52-week range
₹3,966 – ₹6,680
From 52w high
-35.3%
RSI (14)
50.9
vs SMA 50 / 200
↑ 50 · ↓ 200
Tata Elxsi is an engineering R&D services company in the IT sector, trading at ₹4,332 — 35.15% below its 52-week high and 23.92% lower over 12 months. The trailing PE of 42.9 is the highest among the 6 IT peers tracked, while its quality score of 63 ranks first in the peer group. Q4 FY26 revenue grew 4.2% QoQ to ₹993.8 crore and PAT of ₹220 crore met Street expectations, though FY27 guidance calls for high-single-digit growth only.
- ✓Quality score of 63 ranks 1st of 6 IT peers tracked, reflecting above-peer consistency in profitability metrics relative to this cohort.
- ✓ROE of 21.3% has remained above 15% in 4 of the last available years, with positive free cash flow in 4 of those years — indicating recurring profitability.
- ✓5-year earnings CAGR of 27.8% substantially exceeds the 5-year revenue CAGR of 5.8%, pointing to meaningful operating leverage or margin expansion over the period.
- ✓Dividend yield of 1.74% with a ₹75 per share dividend recommended for FY26, providing a direct return to shareholders alongside capital gains exposure.
- ✗Stock has declined 23.92% over 12 months and is trading 35.15% below its 52-week high, with price persistently below the 200-DMA (₹5,159) — indicating sustained selling pressure.
- ✗PE of 42.9 is the highest in the 6-peer IT set (next highest: Tech Mahindra at 27.0), a premium that has come under pressure given FY27 guidance of only high-single-digit revenue growth.
- ✗MOFSL issued a negative rating action following Q4 FY26 results — the most specific broker signal in recent news, citing valuation.
- ✗FY 2025-26 net profit declined due to a one-time labour provision, adding a year-on-year earnings distortion that complicates trend analysis until clean comparables are available.
- ·Q4 FY26 results (April 2026): operating revenue of ₹993.8 crore grew 4.2% QoQ and PAT of ₹220 crore met consensus; management guided FY27 revenue growth at high single digits.
- ·FY26 full-year profit declined due to a one-time labour provision; the company recommended a ₹75 per share dividend for the year.
- ·MOFSL, following Q4 results, issued a negative rating action on TATAELXSI while retaining constructive stances on Persistent Systems and HCL Tech — the only named broker action in current news flow.
- ?Does the 27.8% five-year earnings CAGR reflect a durable structural advantage in automotive and healthcare engineering R&D, or is it partly explained by a low-base recovery period that is now normalising?
- ?At a PE of 42.9 versus large-cap IT peers at 15–27, what rate of revenue and earnings growth would be required to sustain or compress this premium over a 3-year horizon?
- ?The one-time labour provision suppressed FY26 profitability — once normalised, do restated margins indicate an improving or deteriorating trend relative to the FY24 peak?
- ?With the stock 35% below its 52-week high yet RSI at a neutral 51.7, what would a change in institutional positioning — rather than earnings revisions — imply about the relative weight of sentiment vs fundamentals in the current price?
PE
42.9
Forward PE
27.6
ROE
+21.3%
Profit margin
+16.7%
D/E
5.34
Dividend yield
+1.7%
Quality score
63/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.