Tata Capital, a subsidiary of Tata Sons, has grown significantly since its inception in 2007. The company has expanded into one of India’s largest financial services platforms, encompassing a multi-lakh-crore loan book, a broad range of services, and an imminent public listing plan. Here’s a look back at the historical milestones that have shaped Tata Capital into the entity it is today.
Founded in 2007, Tata Capital’s initial goal was to serve a diverse set of clients, including retail, SME, corporate, and institutional clients, under the trusted Tata Group brand. The company quickly diversified its offerings, including consumer finance, commercial finance, and wealth advisory services, signalling an early commitment to becoming a multi-vertical financial services player.
Between 2007 and 2011, Tata Capital focused on scaling its core operations. Specialized subsidiaries like Tata Capital Housing Finance (2008) and Tata Capital Financial Services (2010) were established to support secured retail lending and NBFC operations. By 2011, the company reorganised as a Core Investment Company, transferring its NBFC operations to align better with regulatory frameworks.
In the 2010s, Tata Capital expanded its product offerings into personal loans, home finance, vehicle finance, and corporate lending. This expansion was in alignment with the growing demand for financial products and services, as well as the broader digital shift in the industry. The company also developed wealth and investment advisory services, continuing to build its capabilities for servicing both retail and corporate clients.
Read More: Tata Capital IPO: Tata Group Firm Targets $2 Billion Public Offer in October!
From around 2017, Tata Capital began shifting focus towards digital lending platforms and fintech collaborations. This allowed the company to compress turnaround times and increase the reach of its products beyond physical branches. The digital pivot played a key role in scaling retail and MSME lending, ensuring fast, tech-enabled credit delivery.
By the early 2020s, Tata Capital had surpassed significant scale milestones, including a loan book exceeding ₹1 lakh crore. By FY25, the company had reported total assets around ₹2.2 lakh crore and had expanded its network to over a thousand branches, cementing its position as one of the largest NBFCs in the country.
Tata Capital’s financial performance in FY25 reflected strong revenue and profitability growth. The company reported ₹28,370 crore in revenue, with a profit after tax (PAT) of ₹3,655 crore. The strong growth was driven by robust performance in retail, SME, and corporate lending segments, alongside a surge in net interest and fee income.
In 2025, Tata Capital executed its first $400 million bond issuance as part of a broader $2 billion MTN programme. The company has also earned top domestic ratings (AAA), providing it with efficient access to debt markets to fuel its continued expansion.
As a subsidiary of Tata Sons, Tata Capital benefits from strong governance frameworks that reinforce customer trust and regulatory confidence. The backing of the Tata Group has played a central role in attracting customers, talent, and partners while solidifying the company’s reputation in competitive NBFC markets.
As the company expanded, it kept a close eye on asset quality, with a particular focus on managing the rise in NPAs, especially in its fast-growing retail and SME segments. Credit tightening and enhanced risk analytics have allowed Tata Capital to maintain a stable asset quality amidst rapid growth.
In response to the Reserve Bank of India’s framework for "upper-layer" NBFCs, Tata Capital began preparations for a landmark IPO, expected in 2025. This listing is seen as a major milestone in the company’s journey, enabling capital augmentation, shareholder diversification, and enhanced market visibility.
As of FY25, Tata Capital stands as a large, digitally enabled lender with a nationwide presence. Its diversified portfolio, strong governance, and focus on technology adoption position it well for continued growth. With the planned IPO, the company is preparing for its next phase of expansion, having successfully navigated its journey from a startup to a major player in India’s financial services sector.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities are subject to market risks. Read all related documents carefully before investing.
Published on: Sep 15, 2025, 2:03 PM IST
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