Tata Capital (TATACAP) Q4 25/26 earnings summary

Executive summary

• Achieved strong growth in FY 2026, with AUM up 20% year-on-year to INR 2.77 lakh crore and PAT up 16% sequentially to INR 1,502 crore, excluding non-recurring items.

• Retail and SME segments comprised 86% of AUM, with unsecured retail loans forming 10.3% of Net AUM.

• Asset quality improved, with slippages and credit costs declining, and net NPA at 0.5% (ex-motor finance).

• Merger with Tata Motors Finance completed in May 2025, expanding Motor Finance operations.

• Audited standalone and consolidated financial results for FY26 were approved, with an unmodified audit opinion issued by joint statutory auditors.

Financial highlights

• Excluding motor finance, AUM grew 28% year-on-year to INR 2.52 lakh crore; PAT up 51% year-on-year to INR 1,459 crore.

• Q4 disbursements crossed INR 50,000 crore, up 32% year-on-year and 12% sequentially.

• Housing finance AUM grew 29% year-on-year to INR 86,653 crore; PAT up 34% year-on-year.

• Standalone revenue from operations for FY26 was Rs 23,051.50 crore, up from Rs 21,884.29 crore year-over-year.

• Consolidated net profit attributable to owners for FY26 was Rs 4,846.10 crore, up from Rs 3,664.66 crore year-over-year.

Outlook and guidance

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

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

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

• The company continues to monitor regulatory changes, including the implementation of new Labour Codes.