Tata Capital Q4FY26 Results: Net Profit Jumps 43% to ₹1,502 Crore, AUM Crosses ₹2.77 Lakh Crore

Tata Capital Limited reported strong results for the quarter ended March 31, 2026.

• Including Motor Finance:
  • AUM rose 20% YoY to ₹2,77,275 crore
  • Profit after tax (PAT) grew 43% YoY to ₹1,502 crore
• Excluding Motor Finance:
  • AUM grew 28% YoY to ₹2,51,885 crore
  • PAT increased 51% YoY to ₹1,459 crore

The company said credit quality improved across all product segments.

Growth Driven by Strong Lending Business

Excluding Motor Finance, the company showed solid growth:

• Net total income rose 31% YoY to ₹3,740 crore
• Cost-to-income ratio improved to 36.1%
• Credit cost reduced to 0.8%
• Return on Assets increased to 2.5%
• Return on Equity improved to 14.6%
• Gross Stage 3 assets stood at 1.5%, showing better asset quality

Performance Including Motor Finance

After completing the Tata Motors Finance acquisition in May 2025, the company reported steady quarter-on-quarter growth:

• AUM increased 6% QoQ to ₹2,77,275 crore
• Net income rose 2% QoQ to ₹4,146 crore
• PAT grew 16% QoQ (excluding one-time items)
• Retail and SME loans now make up 86% of total AUM

The company is focusing on improving performance in the Motor Finance segment before accelerating growth.

Strong Focus on Technology and AI

Tata Capital highlighted its AI-first strategy as a key growth driver.

• AI tools reduced credit costs by about 14 basis points in FY26
• Voice AI agents now generate 15% of personal loan business
• AI underwriting supports 80% of SME loan approvals
• Intelligent document processing handled over 2 crore documents
• Cost-to-income ratio improved by 335 basis points during FY26

Tata Capital Housing Finance Delivers Solid Growth

Tata Capital Housing Finance Limited, the company’s housing finance arm, also reported strong performance:

• AUM rose 29% YoY to ₹86,653 crore
• Net income increased 26% YoY to ₹1,016 crore
• PAT grew 34% YoY to ₹527 crore
• Gross Stage 3 assets remained low at 0.7%

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Capital Strength and Network Expansion

• Pan-India network of 1,477 branches across 27 states and UTs
• Capital adequacy ratio at 19%, showing strong financial stability
• Total equity stood at ₹44,658 crore

Tata Capital Share Price Movement

Tata Capital share price (NSE: TATACAP) closed at ₹339.00 on April 23, rising ₹1.65 or 0.49% for the day. The stock opened at ₹338.95 and moved between an intraday high of ₹343.80 and a low of ₹336.30. The company’s market capitalisation stands at ₹1.43 lakh crore with a P/E ratio of 33.74. Over the past year, the stock has traded between a 52-week low of ₹300.15 and a 52-week high of ₹367.30, and it currently does not offer a dividend.

Conclusion

Tata Capital delivered a strong finish to FY26 with robust loan growth, improving asset quality and successful AI adoption. 

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