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Tata Elxsi Ltd. Key Financial Ratios

NSE:TATAELXSI | COMPUTERS - SOFTWARE

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Profitability Margins

2-year trend showing gross, operating, and net profit margins

FY 2025 - FY 2026

Tata Elxsi Ltd.'s net profit margin of 15.9% in FY2026 reflects good profitability, with operating margin at 23.8% and gross margin at 37.6%.

Understanding Profitability Margins

In FY 2026, Tata Elxsi Ltd. posted a gross margin of 37.6%, an operating margin of 23.8%, a net margin of 15.9%. Gross Margin = (Revenue - COGS) / Revenue; Operating Margin = EBIT / Revenue; Net Margin = Net Income / Revenue. Typical healthy ranges: Gross 20-40%, Operating 10-20%, Net 5-10%+. Consistent or improving margins indicate strong competitive positioning.

Company Performance

2-year trend showing revenue, gross profit, and net profit

FY 2025 - FY 2026

Tata Elxsi Ltd.'s revenue grew 0.8% to 39.41B in FY2026, but net profit declined 19.9% to 6.28B — indicating margin compression.

Understanding Company Performance

In FY 2026, Tata Elxsi Ltd.'s revenue grew by 0.8% year-over-year. Revenue is total income from operations. Gross Profit is revenue minus cost of goods. Net Profit is the bottom line after all expenses. Consistent growth across all three signals a healthy, expanding business.

Return on Equity (ROE)

2-year trend showing shareholder returns

FY 2025 - FY 2026

Tata Elxsi Ltd.'s ROE of 20.7% in FY2026 indicates excellent capital efficiency.

Understanding Return on Equity (ROE)

In FY 2026, Tata Elxsi Ltd. reported an ROE of 20.7%. ROE = (Net Income / Shareholders' Equity) x 100. Measures how efficiently the company turns equity into profit. Above 15% is generally strong; above 25% is excellent. Very high ROE may signal high leverage — check alongside debt levels.

Net Income vs Free Cash Flow

2-year trend comparing profitability with cash generation

FY 2025 - FY 2026

Tata Elxsi Ltd.'s FCF/NI ratio of 1.04x in FY2026 indicates solid earnings quality with FCF tracking net income.

Understanding Net Income vs Free Cash Flow

In FY 2026, Tata Elxsi Ltd.'s free cash flow exceeded net income. Free Cash Flow = Operating Cash Flow - Capital Expenditure. When FCF exceeds net income, it suggests high-quality, cash-backed earnings. Persistent gaps may indicate aggressive accounting or heavy capex needs.

Net Income vs Operating Cash Flow

2-year trend comparing profitability with cash from operations

FY 2025 - FY 2026

Tata Elxsi Ltd.'s OCF/NI ratio of 1.06x in FY2026 indicates sound cash management with earnings well-backed by cash.

Understanding Net Income vs Operating Cash Flow

In FY 2026, Tata Elxsi Ltd.'s operating cash flow exceeded net income. Operating Cash Flow is the actual cash from core operations. OCF exceeding net income signals strong cash collection. OCF trailing net income may indicate aggressive revenue recognition or working capital issues.

Leverage Ratios

Measure a company's financial leverage, liquidity, and ability to meet financial obligations.

Current Ratio Analysis

2-year trend showing short-term liquidity position

FY 2025 - FY 2026

Tata Elxsi Ltd.'s current ratio of 3.92x in FY2026 indicates ample liquidity, though assets may be underutilized.

Understanding Current Ratio

In FY 2026, Tata Elxsi Ltd. reported a current ratio of 3.92. Current Ratio = Current Assets / Current Liabilities. Measures short-term liquidity. A ratio of 1.5-3.0 is generally healthy; below 1.0 signals liquidity risk; above 3.0 may indicate underutilized assets.

Interest Coverage Ratio Analysis

2-year trend showing ability to service debt

FY 2025 - FY 2026

Tata Elxsi Ltd.'s interest coverage ratio of 57.7x in FY2026 indicates comfortable debt servicing capacity.

Understanding Interest Coverage Ratio

In FY 2026, Tata Elxsi Ltd. reported an interest coverage ratio of 57.7x. Interest Coverage = EBIT / Interest Expense. Shows how many times operating profit covers interest payments. Above 5x is comfortable; below 1.5x signals potential difficulty servicing debt.

Debt-to-Equity Ratio Analysis

2-year trend showing financial leverage and capital structure

FY 2025 - FY 2026

Tata Elxsi Ltd.'s debt-to-equity ratio of 0.05x in FY2026 reflects a conservative, low-leverage capital structure.

Understanding Debt-to-Equity Ratio

In FY 2026, Tata Elxsi Ltd. reported a debt-to-equity ratio of 0.05. Debt-to-Equity = Total Debt / Total Equity. Below 1.0 is conservative; 1.0-2.0 is moderate; above 2.0 indicates higher financial risk. Capital-intensive industries naturally carry higher ratios.

Total Debt Analysis

2-year trend showing total debt with year-over-year changes

FY 2025 - FY 2026

Tata Elxsi Ltd.'s debt decreased 15.6% YoY in FY2026 — positive deleveraging improves financial flexibility.

Understanding Total Debt

In FY 2026, Tata Elxsi Ltd.'s total debt decreased by 15.6% year-over-year. Total Debt includes short-term debt, long-term loans, debentures, and capital leases. YoY changes (shown as percentages) reveal whether the company is leveraging up or deleveraging.

Shares Outstanding

Year-over-year change in diluted shares outstanding

Tata Elxsi Ltd.'s diluted shares remained virtually unchanged in FY2026.

Over 2 years (FY2025–FY2026), diluted shares remained essentially unchanged at 62.29M.

Understanding Shares Outstanding

In FY 2026, Tata Elxsi Ltd.'s diluted shares decreased by 0.0% year-over-year. Diluted Shares accounts for stock options, warrants, and convertibles. Positive YoY change means dilution (red); negative means buybacks (green). Consistent dilution above 5% annually is a red flag.

Data from audited consolidated filings. For educational purposes only — not investment advice. Last update: FY 2026