During Tuesday’s trading session, the shares of this Tata Group stock and a global leader in design and technology services are in focus, after the company announced the signing of an MoU with National Aerospace Laboratories for Advanced Air Mobility.
With a market cap of Rs. 4,599.8 crores, the shares of Tata Elxsi Limited surged nearly 1.3 percent to hit an intraday high at Rs. 6,574.65 on BSE, as compared to its previous closing price of Rs. 6,490.8.
What’s the news
According to the latest regulatory filings with the stock exchanges, Tata Elxsi Limited and the CSIR-National Aerospace Laboratories (CSIR-NAL) have signed a Memorandum of Understanding (MoU) to establish a strategic partnership for Advanced Air Mobility.
The collaboration is focused on driving innovation in emerging areas, including Unmanned Aerial Vehicles (UAVs), Urban Air Mobility (UAM), and electric vertical take-off and landing (eVTOL) aircraft.
By merging NAL’s extensive expertise in aeronautics with Tata Elxsi’s strengths in electrification, AI/ML, sensor fusion, and certification processes, the partnership is poised to cater to both global and Indian markets.
This partnership is expected to accelerate product development cycles for these sectors by providing access to advanced testing infrastructure, methodologies, and expertise.
Together, Tata Elxsi and CSIR-NAL will focus on key technologies such as aerodynamic design, autonomous systems, and secure communication solutions, addressing the unique requirements of both manned and unmanned air mobility systems.
About the Partner Entity
Established in 1959, National Aerospace Laboratories (NAL), a constituent of the Council of Scientific and Industrial Research (CSIR), India, is the only government aerospace R&D laboratory in the country’s civilian sector.
CSIR-NAL is a high-technology-oriented institution focusing on advanced disciplines in aerospace. The mission of CSIR-NAL is to develop aerospace technologies with
strong science content, design and build small and medium-sized civil aircraft and support all national aerospace programmes.
Financials
Tata Elxsi reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 8.3 percent, rising from Rs. 882 crores in Q2 FY24 to Rs. 955 crores in Q2 FY25.
Similarly, during the same period, the company’s net profit increased from Rs. 200 crores to Rs. 229 crores, representing a marginal growth of around 14.5 percent YoY.
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Key Financial Ratios
In terms of key financial metrics, Tata Elxsi has a Return on Equity (RoE) of 34.5 percent and a return on capital employed (RoCE) of 42.7 percent. Additionally, the company’s debt-to-equity ratio stands at 0.08.
Stock Performance
The stock has delivered negative returns of nearly 24 percent in one year, as well as around 7 percent returns in the last six months. Further, the shares of Tata Elxsi have given negative returns of about 11.2 percent in the last one month.
About the company
Tata Elxsi Limited is engaged in providing product design and engineering services to the consumer electronics, communications & transportation industries and systems integration and support services for enterprise customers. It also provides digital content creation for the media and entertainment industry.
Incorporated in 1989, Tata Elxsi is one of the world’s leading providers of design and technology services across industries including Automotive, Aerospace, Broadcast, Communications, Healthcare, and Transportation.
Written by Shivani Singh
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