Tata Capital Ltd
Tata Capital Ltd
Financial ServicesTata Capital Limited ("TCL"), the flagship financial services company of the Tata Group, is a subsidiary of Tata Sons Private Limited and is carrying on business as a NBFC. It is engaged in providing/supplying a wide array of services/products in the financial services sector and operates across various areas of business: Commercial Finance, Consumer Loans, Wealth Services and distribution and marketing of Tata Cards.[1]
Tata Capital enjoys unanimous analyst support (100% buy ratings from 10 analysts) and strong compounded profit growth of 34% over 5 years. However, a P/B of 3.19x and modest ROE of 13% over 3 years suggest the stock is priced for perfection, warranting a confidence-tempered buy.
Key Fundamentals
LargecapFinanceFinancial ServicesTechnical Indicators
Key Insights
Weaknesses
4- Stock is trading at 3.28 times its book value
- Company has low interest coverage ratio.
- Company has a low return on equity of 13.2% over last 3 years.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoTata Capital enjoys unanimous analyst support (100% buy ratings from 10 analysts) and strong compounded profit growth of 34% over 5 years. However, a P/B of 3.19x and modest ROE of 13% over 3 years suggest the stock is priced for perfection, warranting a confidence-tempered buy.
- Unanimous analyst consensus with 10 out of 10 analysts rating it a Buy (100% buy)
- Strong 5-year compounded profit CAGR of 34%, indicating consistent earnings momentum
- Robust 5-year compounded sales CAGR of 26%, reflecting sustained business expansion
- TTM profit growth of 33% demonstrates accelerating near-term earnings
- Large market cap of Rs 1,48,358 crore provides liquidity and institutional confidence
- 3-year compounded sales CAGR of 32% outpaces the 5-year figure, showing recent revenue acceleration
- Backed by the Tata Group brand, one of India's most trusted conglomerates, enhancing access to low-cost capital
- Stock trades at 3.19x book value (screener flags 3.40x), expensive for an NBFC with sub-15% ROE
- 3-year average ROE of only 13% is below the 15-18% typically expected for premium NBFC valuations
- Low interest coverage ratio flagged as a known concern, raising questions on debt-servicing comfort
- Potential capitalisation of interest costs could overstate reported book value and understate true expenses
- PE ratio of 29.9x is elevated relative to NBFC sector median of ~18-22x
- Dividend yield of just 0.16% offers negligible income return to shareholders
- Last-year ROE declined to 12% from the 3-year average of 13%, signalling margin or leverage pressure
- TTM sales growth of only 11% marks a sharp deceleration from the 3-year CAGR of 32%
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 1d ago- ₹36,000 Cr NCD fundraise approved Jun 17
Board approved raising up to ₹36,000 crore via NCDs (secured, unsecured, perpetual, green bonds) on private placement basis, subject to shareholder approval. Q4 FY26 net profit rose 42.8% to ₹1,502 crore on 8.7% income growth to ₹8,163 crore.
- $76M FTSE index inclusion Jun 19
Tata Capital set to receive $76M (Rs 7.17B) inflow from FTSE index rebalancing, expected to attract significant passive fund flows from index-linked institutional investors.
- New CRO Kamal Bhatia appointed Jun 10
Kamal Bhatia, a CA with experience at ICICI Bank and Magma Leasing, appointed CRO for 2-year term effective July 1, 2026, replacing Nitin Dharma.
- ₹1,600 Cr JSW Realty loan talks Jun 16
JSW Realty in advanced talks for a 5-year ₹1,600 crore loan from Tata Capital at 9-11% p.a. to fund a Mumbai office project near Bandra business district.
- ₹2,030 Cr NCD allotment at AAA Jun 11
Raised ₹2,030 crore via secured NCDs at 8.15% coupon with CRISIL AAA/Stable rating, reflecting strong credit standing and capital market access.
- Trading window closed for Q1FY27 Jun 22
Trading window closed for designated persons from June 23 until 48 hours after Q1FY27 results are declared.
- Investor meetings Jun 18-19 Jun 12
Tata Capital held physical meetings with institutional investors and analysts in Mumbai on June 18-19, 2026.
- Related party transaction approved Jun 5
Shareholders approved material related party transactions with Tata Steel Limited via postal ballot with 99.98% votes in favour.
- Stable government policy outlook Jun 4
Tata Capital anticipates consistent government policy and market-friendly actions, supporting a stable operating environment for financial services.
TL;DR: Tata Capital is in a strong growth phase, backed by a 42.8% jump in Q4 FY26 net profit and aggressive capital raising plans of ₹36,000 crore via NCDs. FTSE index inclusion signals growing institutional recognition, while a large pipeline loan to JSW Realty highlights healthy credit demand. No material headwinds are visible; the key forward risk is execution on deployment of raised capital and maintaining asset quality as the loan book scales.
Quarterly Results
| Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Revenue | 7,185 | 7,104 | 7,478 | 7,665 | 7,737 | 7,976 | 8,160 |
| Expenses | 1,915 | 1,762 | 2,072 | 2,126 | 2,135 | 2,172 | 2,026 |
| Financing Profit | 1,576 | 1,506 | 1,447 | 1,473 | 1,626 | 1,876 | 2,118 |
| Fin. Margin % | 22% | 21% | 19% | 19% | 21% | 24% | 26% |
| Other Income | 9 | 8 | 31 | 27 | 16 | -40 | 3 |
| Interest | 3,693 | 3,836 | 3,960 | 4,066 | 3,976 | 3,928 | 4,017 |
| Depreciation | 92 | 99 | 109 | 118 | 135 | 142 | 143 |
| PBT | 1,494 | 1,415 | 1,368 | 1,382 | 1,507 | 1,695 | 1,978 |
| Tax % | 24% | 26% | 27% | 25% | 26% | 25% | 26% |
| Net Profit | 1,133 | 1,050 | 1,000 | 1,041 | 1,119 | 1,265 | 1,466 |
| EPS in Rs | 2.87 | 2.87 | 2.77 | 2.48 | 2.72 | 2.96 | 3.54 |
| Gross NPA % | 0.8% | — | — | — | — | — | — |
| Net NPA % | 0.4% | — | — | — | — | — | — |
Profit & Loss
| Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|
| Revenue | 9,835 | 10,162 | 13,631 | 18,178 | 28,324 | 31,540 |
| Expenses | 2,826 | 2,908 | 3,018 | 3,951 | 8,032 | 8,458 |
| Financing Profit | 1,797 | 2,364 | 4,013 | 4,659 | 5,263 | 7,096 |
| Fin. Margin % | 18% | 23% | 29% | 26% | 19% | 22% |
| Other Income | 152 | 260 | 150 | 21 | 46 | 4 |
| Interest | 5,213 | 4,889 | 6,601 | 9,568 | 15,030 | 15,985 |
| Depreciation | 334 | 276 | 226 | 288 | 390 | 538 |
| PBT | 1,615 | 2,348 | 3,937 | 4,392 | 4,919 | 6,562 |
| Tax % | 23% | 23% | 25% | 24% | 26% | 25% |
| Net Profit | 1,245 | 1,801 | 2,946 | 3,327 | 3,655 | 4,891 |
| EPS in Rs | 3.2 | 4.69 | 8.51 | 8.41 | 9.64 | 11.42 |
| Div. Payout % | 0% | 3% | 2% | 2% | 4% | 5% |
Balance Sheet
| Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|
| Equity Capital | 3,464 | 3,463 | 3,507 | 3,703 | 3,762 | 4,217 |
| Reserves | 6,509 | 8,250 | 13,833 | 19,714 | 29,429 | 41,645 |
| Borrowing | 69,166 | 86,343 | 1,13,541 | 1,48,512 | 2,08,851 | 2,36,376 |
| Other Liabilities | 3,792 | 4,319 | 4,745 | 4,765 | 6,422 | 8,266 |
| Total Liabilities | 82,930 | 1,02,376 | 1,35,626 | 1,76,694 | 2,48,465 | 2,90,504 |
| Fixed Assets | 901 | 719 | 733 | 1,190 | 2,003 | 2,636 |
| CWIP | 8 | 11 | 20 | 8 | 16 | 1 |
| Investments | 4,653 | 7,846 | 13,254 | 8,733 | 9,866 | 9,508 |
| Other Assets | 77,368 | 93,798 | 1,21,619 | 1,66,763 | 2,36,580 | 2,78,358 |
| Total Assets | 82,930 | 1,02,376 | 1,35,626 | 1,76,694 | 2,48,465 | 2,90,504 |
Cash Flow
| Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|
| Operating | 3,137 | -14,387 | -23,190 | -37,999 | -29,872 | -37,965 |
| Investing | -2,626 | -2,614 | -2,263 | 5,758 | 3,167 | 267 |
| Financing | -2,787 | 17,056 | 26,430 | 35,952 | 29,412 | 31,848 |
| Net Cash Flow | -2,275 | 55 | 977 | 3,712 | 2,707 | -5,849 |
| Free Cash Flow | 3,131 | -14,363 | -23,337 | -38,632 | -30,894 | -38,929 |
| CFO/OP | 48 | -190 | -208 | -258 | -140 | -158 |
Ratios
| Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|
| ROE % | 11% | 15% | 21% | 15% | 13% | 12% |
Documents
Frequently Asked Questions about Tata Capital Ltd
What does Tata Capital Ltd do?
Where is Tata Capital Ltd (TATACAP) listed?
Which sector does Tata Capital Ltd belong to?
What is the market capitalisation of Tata Capital Ltd?
What is the PE ratio of Tata Capital Ltd?
What is the 52-week high and low of Tata Capital Ltd?
Does Tata Capital Ltd pay dividends?
How can I research Tata Capital Ltd on Tapetide?
Company Information
Tata Capital Limited ("TCL"), the flagship financial services company of the Tata Group, is a subsidiary of Tata Sons Private Limited and is carrying on business as a NBFC. It is engaged in providing/supplying a wide array of services/products in the financial services sector and operates across various areas of business: Commercial Finance, Consumer Loans, Wealth Services and distribution and marketing of Tata Cards.[1]