Tata Capital Housing Finance and TCS to Partner for ₹5,150 Crore Loans and Services in FY26

Tata Capital Housing Finance Ltd (TCHFL), a leading mortgage financing arm of the Tata Group, is planning to formalise a related-party transaction with Tata Consultancy Services (TCS) in the financial year 2025-26. This pact aims to facilitate fundraising through instruments such as non-convertible debentures and term loans, along with the procurement of IT-related services and infrastructure. The cumulative value of this arrangement is expected to be up to ₹5,150 crore.

Related-Party Pact with TCS for Funding and Services

According to its FY25 annual report, TCHFL intends to enter into an agreement with group company TCS as part of its overall borrowing strategy. The company regularly raises funds via term loans, inter-corporate deposits, and NCDs. It noted that Tata Group entities have occasionally subscribed to TCHFL’s NCDs in the past. Additionally, TCHFL has previously availed services from TCS, including IT solutions and the purchase of hardware and software components.

TCHFL is a wholly owned subsidiary of Tata Capital Ltd (TCL), which is 92.86% owned by Tata Sons Private Ltd. As of March 31, 2025, Tata Sons also held a 71.74% stake in TCS.

Rising Borrowing Limits and Financial Position

To support its growing business requirements, TCHFL has proposed an increase in its authorised borrowing limit from ₹75,000 crore to ₹92,000 crore. The move is aimed at fulfilling both short-term working capital needs and long-term funding goals. During FY25, the company issued secured redeemable NCDs totalling ₹8,831 crore via private placement. As of March 31, 2025, its total outstanding debt stood at ₹61,077 crore, with a debt-equity ratio of 7.14 times.

Read More: TCS Q4FY25 Results: Revenue and Free Cash Flow Saw Double-Digit Growth!

TCS Share Price Performance 

As of 19 June 2025, 11:21 AM, TCS share price is trading at ₹3,421.80 per share, a decline of 0.86%. Over the month, the stock has declined by 2.81%.

Conclusion

TCHFL’s planned collaboration with TCS underscores the synergy within the Tata Group, leveraging internal resources for operational and financial efficiency. The proposal to expand its borrowing capacity highlights TCHFL’s readiness to scale operations in line with market demands and future growth plans.

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