Tata Elxsi – Research Report

surged nearly 5%, driven by both technical breakout and IT sector momentum. On charts, it has formed a bullish Gartley harmonic pattern with support near ₹5,210 and potential upside toward ₹6,100–6,725 if sustained above ₹5,660. Fundamentally, the company remains strong with FY25 revenue of ~₹3,695 Cr, profit of ~₹745 Cr, debt-free status, high ROE/ROCE, and a recent ₹75 dividend. Short-term pressure from weak auto orders is expected to ease with recovery in EV, healthcare, and media deals in H2 FY26. Sector tailwinds are also supporting the move as Indian IT stocks rally on a weaker rupee, stable global tech spending outlook, and FII short covering. Though Tata Elxsi is engineering-focused, it benefits from sector sentiment. The company’s AI-led growth adds a long-term edge, with solutions across autonomous vehicles, OTT platforms, and healthcare, supported by partnerships with Mercedes-Benz and Infineon. Overall, Tata Elxsi combines a bullish chart setup, resilient fundamentals, and thematic AI positioning, making it attractive for medium-term upside, though near-term earnings visibility must be tracked. Disclosure: The author and family have no financial interest in Tata Elxsi. Disclaimer: This note is for information only, not investment advice.