Tata Capital (TATACAP) Q4 25/26 (Media) earnings summary

Executive summary

• Achieved robust growth in FY 2026, driven by strong domestic consumption, moderated inflation, and approval of audited standalone and consolidated results with an unmodified audit opinion.

• Assets under management (AUM) excluding motor finance rose 28% year-over-year to INR 2.52 lakh crore; including motor finance, AUM grew 20% to INR 2.77 lakh crore.

• Profit after tax (PAT) excluding non-recurring items increased 51% year-over-year for Q4 and 36% for the full year; standalone net profit for FY26 was Rs 3,201.14 crore, consolidated net profit attributable to owners was Rs 4,846.10 crore.

• Retail and SME segments constitute 86% of total AUM, reflecting a well-diversified portfolio.

• Integration and amalgamation of Tata Motors Finance completed, with the motor finance business achieving breakeven in Q3 and profitability in Q4.

Financial highlights

• Q4 PAT (excluding non-recurring items) reached INR 1,459 crore, up 51% year-over-year and 14% sequentially; including motor finance, Q4 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.

• Net NPA declined by 10 basis points to 0.5%; credit costs improved to 0.9%, down 30 basis points from Q3.

• Return on assets improved by 20 basis points to 2.5% (excluding motor finance); ROE improved by 20 basis points to 2.3% (including motor finance).

• Cost to income ratio for FY 2026 improved by 335 basis points year-over-year to 38.3%.

Outlook and guidance

• Guidance for FY 2028: AUM growth targeted at 23%-25% CAGR.

• Expect continued strong growth in housing, retail secured, retail unsecured, and SME segments in FY 2027.

• Proportion of unsecured business expected to increase from current 10% of AUM.

• Margins expected to improve slightly, driven by higher growth in high-yield businesses.

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