Tata Tech vs Tata Elxsi: Which Engineering Giant Is a Better Buy?

Tata Technologies and Tata Elxsi are two major players in the engineering and technology space, each operating under the Tata Group umbrella. While they both serve global clients in product engineering and digital services, their sector focus, financials and growth trajectory differ significantly. This blog compares the two businesses using recent performance and valuation metrics, allowing readers to assess their positioning in the current market landscape.

Share Price and Market Position

As of 1 June 2025, tata technologies share is trading at ₹741.40, while Tata Elxsi is priced at ₹6,459.50. Over the past year, tata technologies share has declined by roughly 37% from its December 2023 high of ₹1,178.31, whereas Tata Elxsi has fallen around 26% from ₹8,753.45 in the same period.

In recent months, Tata Technologies gained 17.6% in May before a 4.16% dip in June. Tata Elxsi moved up 11.68% in May and remained mostly flat in June with a 0.31% increase. Both stocks have shown volatility, shaped by sector sentiment and quarterly earnings reactions.

The difference in share prices is also reflected in their market capitalisation. Tata Elxsi, with a market cap of approximately ₹402.12 billion, is currently larger than Tata Technologies, which is valued at around ₹300.76 billion. The contrast reflects Tata Elxsi’s established presence in digital design, while tata technologies share represents a more recent entry into the public market, focused on manufacturing and mobility engineering.

Revenue and Profitability

Tata Technologies reported total operating revenue of ₹5,117.20 crore for FY24, up 15.9% from the previous year. Operating EBITDA stood at ₹941.28 crore, resulting in a margin of 18.4%. Profit before tax was ₹932.05 crore, while net profit (PAT) came in at ₹679.37 crore - a year-on-year increase of 8.9%.

For Q4 FY25, revenue stood at ₹1,285.65 crore. Operating EBITDA was ₹233.4 crore, with an EBITDA margin of 18.2%. Net profit was ₹188.9 crore, showing over 20% sequential growth.

Tata Elxsi posted revenue of ₹3,729.0 crore for FY25, marking 5.0% year-on-year growth. The EBITDA margin was 26.1%, with a profit before tax margin of 26.3%. In Q4 FY25, revenue stood at ₹908.3 crore, EBITDA margin at 22.9%, and net profit at ₹172.4 crore,  down 12% year-on-year.

Valuation Metrics

As of June 2025, both companies continue to trade at premium valuations, although their multiples differ due to business models and market positioning.

Tata technologies share trades at a price-to-earnings (P/E) ratio of approximately 45×, based on trailing twelve-month earnings. Its price-to-sales (P/S) ratio stands around 6×.

Tata Elxsi, on the other hand, holds a trailing P/E ratio of roughly 51×, with a P/S ratio in the 10–11× range.

While tata technologies share offers more moderate valuations relative to peers, Tata Elxsi remains more expensive on both earnings and revenue metrics.

Sector Exposure and Growth Potential

Tata Technologies is aligned with the global automotive and aerospace industries. The company is expanding into electric vehicle (EV) design, embedded systems and off-highway machinery - sectors benefiting from increased investment and regulation.

Tata Elxsi focuses more on digital engineering and user experience, with clients in media, telecom and medical devices. Its healthcare vertical has grown recently, contributing to future stability.

While both companies work in automotive R&D, Tata Elxsi concentrates on digital services, whereas Tata Technologies brings mechanical engineering depth.

Conclusion

To track or invest in tata technologies share or Tata Elxsi, investors require an active demat account. A demat account allows secure holding of shares, seamless access to price updates, and participation in corporate actions. Platforms like Torus Digital offer a quick, paperless setup process for opening a demat account.

In summary, Tata Technologies and Tata Elxsi operate in different niches of the engineering services space. Their valuations, growth patterns, and sector focus vary, and both continue to evolve within their respective domains. Investors can assess them based on personal goals, industry outlook, and risk preferences.