Tata Capital (TATACAP) Q4 25/26 earnings summary

Executive summary

• Achieved strong growth in FY 2026, with consolidated AUM up 20% year-on-year to ₹2,77,275 Cr, and PAT up 16% sequentially to ₹1,502 Cr, excluding non-recurring items.

• Excluding motor finance, AUM grew 28% year-on-year to ₹2,51,885 Cr, and PAT rose 51% year-on-year, driven by lower credit costs and improved asset quality.

• Retail and SME lending accounted for 86% of AUM, with unsecured retail loans at 10.3% of AUM and a focus on granular, resilient growth.

• Merger with Tata Motors Finance completed in May 2025, expanding Motor Finance operations and impacting segment performance.

• Audited standalone and consolidated financial results for FY26 were approved, with an unmodified audit opinion and a final dividend of Re. 0.57 per share recommended.

Financial highlights

• Consolidated AUM reached INR 2.77 lakh crore; excluding motor finance, AUM was INR 2.52 lakh crore.

• Q4 PAT (ex-motor finance) was INR 1,459 crore, up 51% year-on-year; consolidated PAT was INR 1,502 crore, up 16% sequentially.

• Standalone revenue from operations for FY26 was Rs 23,051.50 crore, consolidated revenue was Rs 31,539.89 crore, and consolidated net profit attributable to owners was Rs 4,846.10 crore.

• Cost-to-income ratio improved to 38.3% (incl. Motor Finance), 36.1% (excl. Motor Finance); credit costs declined to 0.8% (excl. Motor Finance) and 0.9% (incl. Motor Finance).

• Total assets (consolidated) as of March 31, 2026, stood at Rs 2,90,503.54 crore.

Outlook and guidance

• FY 2027 AUM growth guided at 23%-25%, with retail and SME share expected to increase.

• FY28 guidance targets AUM CAGR of 23-25%, PAT CAGR >30%, ROA 2.5-2.7%, and ROE 17-18%.

• Margins expected to improve as high-yielding segments (unsecured, motor finance, affordable housing) grow faster.

• Cost of funds projected to be lower in FY 2027 due to liability repricing.

• The company continues to monitor regulatory changes, including new Labour Codes, and will adjust accounting as needed.