Tata Capital Limited (TATACAP)
Large CapFinancial Services stocks · Large cap · NSE
Tata Capital Limited (TCL) is an upper layer NBFC with a 100% owned housing finance subsidiary. It completed a merger with Tata Motors Finance Limited (TMFL) in May-25. Net AUM was ~$29.3bn as of Mar 31, 2026, with Retail & SME forming ~86% of Net AUM. The company was successfully listed on NSE and BSE in Oct-25.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 2/6 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Excellent · 85/100Rev +15% YoY · PAT +56% YoY · +8% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹8,822 Cr | +15.1% | +8.1% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹1,628 Cr | +56.4% | +11.1% |
| PAT margin | 18.4% | +487 bps | +48 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
TATACAP reported robust FY26 consolidated performance with Net AUM up 20% YoY to $29.3bn and PAT up 32% YoY to $512mn. Q4FY26 saw strong sequential growth in AUM (+6%) and PAT (+19%), driven by expanding net interest income and improving asset quality with declining credit costs.
The company demonstrates strong AUM growth, healthy profitability, and improving asset quality across segments. Strategic focus on retail/SME, digital transformation, and cleantech financing positions it well. The integration of the TMFL merger appears to be contributing to scale and diversified growth.
Net AUM by Product (Mar 31, 2026)
Latest issuer-disclosed distribution across 8 reported categories.
Retail and SME Focus
Retail & SME segments constitute ~86% of Net AUM, providing a diversified and granular loan book with ~99% organic and ~99% granular loans.
Digital-First Approach
97% of customers onboarded via digital platforms and 98% of disbursements via scorecards/BRE, driving efficiency and customer experience.
AI Capabilities
Leveraging AI in underwriting (FinSight, document intelligence), operations (80+ bots), marketing (AI-generated creatives), collections (80+ predictive models), and service.
Cleantech Financing
Pioneer in Cleantech financing, having financed 600+ projects, 30GW+ renewable capacity, and $4,750 Mn+ disbursals to date.
Branch Network Expansion
The branch network significantly expanded from 539 branches in Mar-23 to 1,477 branches in Mar-26, a 2.7x increase.
Strong Brand and Credit Rating
Leverages the 'Tata' brand name and holds the highest possible domestic credit rating (AAA with stable outlook) and an International BBB credit rating by S&P, Fitch.
Diversified Funding Sources
Access to a diverse pool of domestic and international lenders at competitive rates, including a 1st USD bond issue in Jan’25.
Global Climate Investor Partnerships
Deep partnerships with global climate investors enable access to long-tenure, low-cost capital for green projects.
Asset Quality Monitoring
While GNPA/NNPA improved QoQ, the overall PCR of 56.2% (Mar-26) suggests a need for continued vigilance, especially with ongoing growth and merger integration.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Annual figures (FY26 vs FY25) provide the overall growth trajectory and full-year performance post-merger. Quarterly figures (Q4FY26 vs Q3FY26) are crucial for assessing sequential momentum, asset quality trends, and the immediate impact of operational strategies in the NBFC sector.
Net AUM
Net AUM reached $29,293mn as of Mar 31, 2026, representing a 20% YoY growth and 6% QoQ growth.
Net Interest Income (NII)
NII for FY26 was $1,338mn, up 18% YoY. Q4FY26 NII was $367mn, showing a 5% QoQ increase.
Average Cost of Borrowings
Average cost of borrowings was 7.1% in Q4FY26, down from 7.4% in Q3FY26.
Gross Stage 3 (GNPA)
Gross Stage 3 loans were 2.0% as of Mar 31, 2026, improving from 2.2% as of Dec 31, 2025.
Futuready Strategy
Management aims to innovate and leverage technology to anticipate, serve, and shape future needs, setting the path for others to follow.
AI-First NBFC Vision
Committed to building an AI-First NBFC, harnessing AI for conversation, technology, people capability, document intelligence, and advanced analytics to drive impact.
Responsible Financial Partner
Purpose is to be a responsible financial partner fulfilling India’s aspirations, emphasizing trust, collaboration, and customer delight.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net AUM Growth | 20% YoY, 6% QoQ (Mar-26) | Sustained double-digit growth in AUM, particularly in the Retail and SME segments. |
| Asset Quality (GNPA/NNPA) | GNPA 2.0%, NNPA 0.9% (Mar-26) | Continued improvement or stability in asset quality metrics, especially post-merger integration. |
| Credit Cost | 0.9% (Q4FY26 annualized) | Maintenance of declining credit costs, indicating effective risk management and collection strategies. |
| Cost of Borrowings | 7.1% (Q4FY26) | Further reduction or stability in borrowing costs, leveraging strong credit ratings and diversified funding. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
Full year credit costs are expected to be in the range of 1% to 1.1% excluding Motor Finance, and close to 1.2% on a merged basis.
Over the next 3 years, Tata Capital expects consolidated RoAs to be in the range of 2.5% to 2.7%.
The company is confident of transforming the Motor Finance business into a 2% plus RoA business by FY28.
Cost to income ratio is expected to reduce from 42% last year to 39% in the current year, representing a reduction of over 300 basis points.
Tata Capital targets full-year AUM growth of 22% to 25% excluding Motor Finance, and 18% to 20% on a merged basis for FY26.
Outcome check: Revenue YoY averaged 10.7% across 2 later quarter(s).
Tata Capital Housing Finance aims to reach an AUM of approximately INR 1 lakh crores by the middle of the next financial year.
Outcome check: Revenue YoY averaged 10.7% across 2 later quarter(s).
Trend score and candlestick chart
78Bullishfull bull SMA stack · SMA20 +2.7% / mo · MACD − · near 52W high
Technical chart
TATACAPdaily · 1Y · AUTO+16.6%Daily history is available from 2025-10-13; the requested 1Y window is partially covered.
Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 60. Wait for confirmation.
- Price > SMA20 > SMA50 > SMA200 — full bullish stack.
- SMA20 rising (~2.6% over last month) — short-term momentum positive.
- RSI(14) at 60 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 4% off 52W high · 27% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 11.0% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +0.7%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 18 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 18 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Growth contributes 15/25 to the score.
- Quality contributes 2/20 to the score.
- Valuation contributes 0/30 to the score.
Main drags
- Altman Z is 0.7, in distress territory.
- Fair-value margin of safety is negative at -5.0%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -2 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Management has 100% delivered/partly-delivered outcomes on 2 checked claims. It ranks around the 16th percentile of the scored universe and 29th percentile within Financial Services. Main check: balance sheet trust is weak at 22/100.
Mixed Trust Lite: Promoter holding is 85.4%. Key concern: Operating cash flow is negative at ₹-37965 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Financial Services: 29th pctile, median 62 · Large: 9th pctile, median 73
31 documents have extracted text, but claim history is not strong enough yet.
2/6 claims checked · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 85.4%.
- ▸Promoter pledge is zero.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸3/4 latest quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-37965 Cr.
- ▸Debt/equity is 5.15.
- ▸Altman Z is 0.65.
- ▸Only 1 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 29.30
- P/B
- 3.47
- EV/EBITDA
- 689.16
- Market Cap
- 159204.00Cr
Profitability
- ROE
- 12.40%
- ROCE
- 8.58%
- ROA
- 1.89%
- Dividend Y
- 0.15%
Growth (CAGR)
- Revenue 5Y
- 26.00%
- EPS 5Y
- 34.00%
- Revenue 3Y
- 32.00%
- EPS 3Y
- 17.00%
Balance Sheet
- Debt/Equity
- 5.15
- Interest Coverage
- —
- Altman Z
- 0.65
- Book Value
- 108.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 1/5
- OCF
- -37965.00 Cr
- EPS TTM
- 12.87
Shareholding
- Promoter Hold
- 85.41%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 84%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.