TATACAP
Large CapTata Capital Limited
Financial Services
Tata Capital is an upper layer NBFC with a 100% owned housing finance subsidiary. It completed its merger with Tata Motors Finance Limited in May-25 (appointed date Apr 1, 2024). The company's Net AUM stood at ~₹ 2.8tn as of Mar 31, 2026, with Retail & SME segments forming ~86% of the portfolio.
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, management trust needs verification, price trend argues for patience, and recent execution is mixed.
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 31 Mar 2026
Good · 65/100Rev +9% YoY · PAT +47% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹8,160 Cr | +9.1% | +2.3% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹1,466 Cr | +46.6% | +15.9% |
| PAT margin | 18.0% | +460 bps | +211 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4FY26 results show robust sequential growth with Net AUM up 6% QoQ to ₹ 2,77,275 Cr and PAT up 16% QoQ to ₹ 1,502 Cr. Asset quality improved with GNPA at 2.0% and NNPA at 0.9%, alongside a decline in annualized credit cost to 0.9%.
The company delivered strong Q4FY26 performance, with healthy AUM and PAT growth, coupled with improving asset quality and profitability metrics. The ongoing integration of Motor Finance and strategic focus on digital capabilities and granular retail/SME book support the long-term thesis, despite some portfolio realignment in Motor Finance.
Net AUM by Product (as of Mar 31, 2026)
Latest issuer-disclosed distribution across 3 reported categories.
Retail & SME Focus
Retail + SME segments constitute ~86% of Net AUM, driving granular and diversified growth.
Digital & AI Capabilities
Leveraging digital platforms, GenAI, and analytics for superior customer experiences, operational efficiency, and new opportunities.
Housing Finance Subsidiary (TCHFL)
TCHFL reported 29% YoY growth in Net AUM to ₹ 86,653 Cr and 34% YoY PAT growth, with best-in-class asset quality.
Unsecured Retail Disbursements
Company witnessed continued uptick in Unsecured Retail disbursements, with declining slippage trends after policy interventions.
Branch Network Expansion
Branch locations increased from 539 in Mar-23 to 1,477 in Mar-26 across 27 states and union territories.
Motor Finance Product Rollout
Motor Finance products have been rolled out in 117 Tata Capital Limited branches since Mar-25.
Strong Brand Equity
Leveraging the 'Tata' brand name for trust and market penetration.
Highest Credit Rating
Highest possible domestic credit rating (AAA) and diversified liabilities ensure lower cost of funds.
Digital Transformation
Digital, GenAI, and analytics are at the core, driving superior experiences and outcomes across the loan lifecycle.
Motor Finance Portfolio Realignment
Net AUM in Motor Finance declined by ₹ 8,123 Cr between Mar-25 and Mar-26 due to strategic consolidation and focus on granularity.
Commercial Vehicle (CV) Cycle Monitoring
Transformation of the Motor Finance business is progressing amid a closely monitored CV cycle.
Unsecured Retail Credit Quality
Identified credit quality concerns in Personal Loan (Q3FY24) and Microfinance Loan (Q1FY25) segments, addressed through policy interventions.
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.
The merger with Tata Motors Finance Limited became effective in May-25, making QoQ comparisons more relevant for assessing the performance of the combined entity and sequential momentum.
Net AUM Growth (QoQ)
Net AUM grew 6% QoQ to ₹ 2,77,275 Cr.
PAT Growth (QoQ)
PAT increased 16% QoQ to ₹ 1,502 Cr.
Annualized Credit Cost
Annualized Credit Cost declined to 0.9% in Q4FY26 from 1.2% in Q3FY26.
Gross Non-Performing Assets (GNPA)
GNPA improved to 2.0% in Q4FY26 from 2.2% in Q3FY26.
FY28 Guidance (Including Motor Finance)
Management targets AUM CAGR of 23-25%, PAT CAGR >30%, ROA of 2.5-2.7%, ROE of 17-18%, Credit cost <1.0%, Net NPA <1.0%, and Cost to income of 33-34%.
Motor Finance IT Integration
IT integration of Motor Finance with Tata Capital Limited is in progress, with target completion by Q1/Q2 FY27.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| AUM Growth (Including Motor Finance) | 6% QoQ growth in Q4FY26. | Sustained growth towards the FY28 guidance of 23-25% CAGR. |
| Net NPA (Including Motor Finance) | 0.9% in Q4FY26. | Maintenance below the management's FY28 guidance of <1.0%. |
| Credit Cost (Including Motor Finance) | 0.9% in Q4FY26. | Maintenance below the management's FY28 guidance of <1.0%. |
| Motor Finance Portfolio Stabilization | Net AUM lower by ₹ 8,123 Cr YoY. | Stabilization and growth in new segments within Motor Finance, indicating successful realignment. |
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
43NeutralSMA20 -6.4% / mo
Technical chart
TATACAPdaily · 6M-0.6%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 59. Wait for confirmation.
- SMA20 falling (~7.2% over last month) — short-term momentum negative.
- RSI(14) at 59 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 12% off 52W high · 9% 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.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 14.0%.
- Growth contributes 15/25 to the score.
- Valuation contributes 6/30 to the score.
Main drags
- Altman Z is 0.6, in distress territory.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Balance sheet is weaker at 0/15; 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: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Weak Trust: Management has 100% delivered/partly-delivered outcomes on 2 checked claims. It ranks around the 6th percentile of the scored universe and 14th 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.
Management or financial behaviour needs caution. Demand stronger valuation compensation.
overall median 67 · Financial Services: 14th pctile, median 62 · Large: 4th pctile, median 74
23 documents indexed, but claim history is not strong enough yet.
2/6 claims checked · No contradicted claim yet
How to read this Trust Score
Weak 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.
Trust risks
- ▸Operating cash flow is negative at ₹-37965 Cr.
- ▸Debt/equity is 5.15.
- ▸Altman Z is 0.58.
- ▸Only 1 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 27.20
- P/B
- 2.90
- EV/EBITDA
- 686.08
- Market Cap
- 132737.00Cr
Profitability
- ROE
- 12.30%
- ROCE
- 8.58%
- ROA
- 1.68%
- Dividend Y
- —
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
- 0.58
- Book Value
- 108.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 1/5
- OCF
- -37965.00 Cr
- EPS TTM
- 11.42
Shareholding
- Promoter Hold
- 85.41%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 24%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%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.