Tata ElxsiBOM:500408 -3.84%86 Net Margin % is 22.17% as of Mar. 2026, which is 16% above its 10-year median of 19.16. GuruFocus rates BOM:500408 with a GF Score™ of 86/100 and a GF Value™ of ₹7,417.28 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,824 Software companies, Tata Elxsi ranks better than 86.86% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Tata Elxsi's Net Income for the
three
months ended in Mar. 2026 was ₹2,204 Mil. Tata Elxsi's Revenue for the
three
months ended in Mar. 2026 was ₹9,938 Mil. Therefore, Tata Elxsi's net margin for the quarter that ended in Mar. 2026 was 22.17%.
The historical rank and industry rank for Tata Elxsi's Net Margin % or its related term are showing as below:
BOM:500408'
s Net Margin % Range Over the Past 10 Years
Min: 14.13 Med: 19.16 Max: 24.01
Current: 16.73
BOM:500408's Net Margin % is ranked better than 86.86% of 2824
companies
in the Software industry
Industry Median: 2.525
vs BOM:500408: 16.73
Tata Elxsi (BOM:500408) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Tata Elxsi Net Margin % Related Terms
Tata Elxsi Net Margin % Historical Data
* Premium members only.
The historical data trend for Tata Elxsi's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BOM:500408 vs UBER, SHOP, CRM: Net Margin % Comparison
For the Software - Application subindustry, Tata Elxsi's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tata Elxsi Net Margin % vs Software Industry
For the Software industry and Technology sector, Tata Elxsi's Net Margin % distribution charts can be found below:
* The bar in red indicates where Tata Elxsi's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Tata Elxsi (BOM:500408) has a Net Margin % of 22.17% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Tata Elxsi and its competitors. This is 16% above median its historical median of 19.16. Over the past decade, Tata Elxsi's Net Margin % has ranged from 14.13 to 24.01. According to the industry distribution chart, Tata Elxsi ranks #371 out of 2824 companies in the Software industry, placing it in the top 13.1%.
Is Tata Elxsi's Net Margin % too high?
Tata Elxsi's current Net Margin % of 22.17% is 16% above median its 10-year median of 19.16. Over the past 10 years, this metric has ranged from a low of 14.13 to a high of 24.01. The Software industry median Net Margin % is 2.53. Tata Elxsi's value of 22.17% is 778% above this industry median. Based on the distribution chart, Tata Elxsi ranks #371 out of 2824 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Tata Elxsi has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tata Elxsi's Net Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Tata Elxsi ranks #371 out of 2824 companies for Net Margin %. This places Tata Elxsi in the top 13% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.53. Tata Elxsi's value of 22.17% is 778% above this benchmark. Historically, Tata Elxsi's own Net Margin % has ranged from 14.13 to 24.01 over the past decade. While the company's 10-year median is 19.16 vs. the industry median of 2.53, Tata Elxsi has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.53, based on 2,824 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Elxsi's current Net Margin % of 22.17% is 778% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Tata Elxsi and its competitors. For the Software industry, the median Net Margin % is 2.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Elxsi's current Net Margin % is 22.17%, which is 16% above median its own 10-year median of 19.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Elxsi stock overvalued right now?
Based on GuruFocus' analysis, Tata Elxsi (BOM:500408) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹7,417.28, compared to a current price of ₹3,830.10 — trading 48.4% below its estimated fair value. The current Net Margin % is 22.17%, which is 16% above median its 10-year median of 19.16 and 778% above the Software industry median of 2.53. Tata Elxsi's overall GF Score™ is 86/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Tata Elxsi (BOM:500408), the current Net Margin % is 22.17% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tata Elxsi (BOM:500408) Overvalued in 2026?
Based on GuruFocus' analysis, Tata Elxsi stock appears to be undervalued.
The current stock price of ₹3,830.10 is trading 48.4% below its estimated GF Value™ of ₹7,417.28.
GuruFocus considers Tata Elxsi to be Significantly Undervalued.
Key valuation signals for BOM:500408:
Net Margin %: 22.17% (16% above median its 10-year median of 19.16)
GF Value™: ₹7,417.28 vs. price of ₹3,830.10 (48.4% below fair value)
Industry Position: 778% above the Software median (#371 of 2824)
No single metric tells the full story. See the BOM:500408 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tata Elxsi Ltd provides product design and engineering services to the consumer electronics, communications & transportation industries and systems integration and support services for enterprise customers. The company also provides digital content creation for media and entertainment industry. It operates across two segments to deliver design, engineering and technology solutions across industries: Software Development & Services (SDS) and Systems Integration & Support (SIS). The SDS segment generates maximum revenue for the company and provides end-to-end product engineering and digital services, supporting clients from concept and design to development, validation and deployment. Geographically, the company derives maximum revenue from Europe followed by India, USA, and Other regions.
86GF Score
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