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Non-banking financial company Tata Capital Ltd on Thursday, April 23, reported a 34% year-on-year increase in profit after tax (PAT) to ₹527 crore from ₹394 crore in the corresponding period last year.
The company reported a 20% rise in consolidated AUM to ₹2,77,275 crore and 43% growth in net profit to ₹1,502 crore in FY26. Excluding motor finance, AUM stood at ₹2,51,885 crore, up 28% YoY, with net profit of ₹1,459 crore, up 51%.
On a consolidated basis, excluding motor finance, AUM grew 28% to ₹2,51,885 crore from ₹1,96,942 crore last year. Net total income rose 31% YoY to ₹3,740 crore in Q4FY26 from ₹2,861 crore in Q4FY25. Operating expense on average net loan book remained stable at 2.3% in Q4FY26 versus Q4FY25, while the cost-to-income ratio improved to 36.1% from 37.8%.
Annualised credit cost stood at 0.8% in Q4FY26 versus 1% in Q3FY26. Profit after tax increased 51% year-on-year to ₹1,459 crore from ₹964 crore. Return on assets (RoA) stood at 2.5% compared with 2.1% in Q4FY25, while return on equity (RoE) stood at 14.6% versus 14.2%. Gross stage 3 stood at 1.5%, net stage 3 at 0.5%, and the provision coverage ratio at 65.1% as of March 31, 2026.
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On a consolidated basis, including motor finance, the retail and SME segments accounted for around 86% of net AUM, while unsecured retail formed 10.3% of net AUM. Motor finance constituted about 9% of net AUM, with the company focusing on improving business metrics before accelerating growth. The branch network stood at 1,477 branches across 27 states and union territories.
AUM grew 6% quarter-on-quarter to ₹2,77,275 crore from ₹2,60,698 crore. Net total income increased 2% sequentially to ₹4,146 crore from ₹4,052 crore. Operating expense on average net loan book remained at 2.5% in Q4FY26 versus Q3FY26, while the cost-to-income ratio stood at 38.3% versus 38.4%.
Annualised credit cost improved to 0.9% from 1.2% QoQ. PAT, excluding non-recurring items, rose 16% over the third quarter in FY26 to ₹1,502 crore from ₹1,290 crore, while including such items, PAT rose 19%. RoA stood at 2.3% versus 2.1%, and RoE at 13.9% versus 13.1%. Gross stage 3 stood at 2.0%, net stage 3 at 0.9%, and the provision coverage ratio at 56.2%. Total equity stood at ₹44,658 crore, with a capital risk adequacy ratio at 19.0%.
Tata Capital has recommended a final dividend of ₹0.57 per equity share of face value ₹10 each for the financial year ended March 31, 2026, subject to approval of shareholders at the ensuing annual general meeting. The dividend will be paid after it is approved at the AGM.
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The wholly-owned subsidiary reported AUM growth of 29% year-on-year to ₹86,653 crore from ₹67,252 crore. Net total income rose 26% to ₹1,016 crore in Q4FY26 from ₹808 crore a year ago. Cost-to-income ratio improved to 29.4% from 32.0%. Credit cost stood at ₹24 crore, annualised at 0.1% of the average net loan book.
RoA stood at 2.6% versus 2.4%, and RoE at 19.9% versus 18.6%. Gross stage 3 stood at 0.7%, net stage 3 at 0.3%, and the provision coverage ratio at 55.1%. Capital adequacy ratio stood at 17.6% as of March 31, 2026.
The company recommended a final dividend of ₹0.57 per equity share of face value ₹10 each for the financial year ended March 31, 2026, subject to shareholder approval at the ensuing annual general meeting. The dividend will be paid after approval at the AGM.
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Shares of Tata Capital Ltd ended at ₹340.40, up by ₹2.85, or 0.84%, on the BSE today, April 23.
