₹3,127 crore from ₹2,438 crore, YoY." width="600" height="338" fetchpriority="high" loading="eager"/>Tata Capital's net interest income (NII), excluding motor finance, jumped 28% to ₹3,127 crore from ₹2,438 crore, YoY.(Photo: REUTERS)AI Quick ReadTata Capital share price gave up early gains on Friday after the company reported its Q4 results. The Tata Group stock rose as much as 1.68% to ₹346.15 apiece on the BSE. However, selling pressure dragged the overall Indian stock market, and Tata Capital shares also declined over a percent.
The Tata group’s non-banking finance company (NBFC), Tata Capital, reported a consolidated net profit of ₹1,502.02 crore for the fourth quarter of FY26, registering a growth of 42.8% from ₹1,051.70 crore in the same period last year.
The company’s revenue from operations in Q4FY26 stood at ₹8,160 crore, up 9% from ₹7,478 crore, year-on-year (YoY).
The net interest income (NII), excluding motor finance, jumped 28% to ₹3,127 crore from ₹2,438 crore, YoY.
Consolidated assets under management (AUM) grew by 20% YoY to ₹2,77,275 crore as on March 31, 2026. Ex-Motor Finance AUM stood at ₹2,51,885 crore, up 28% YoY.
Tata Capital posted a decent quarter, logging higher than expected AUM growth and asset quality, lower credit cost, and inline PAT on slightly softer net interest margin (NIM) due to strong corporate loan growth.
The company’s management said it is actively assessing the impact of the ongoing global conflict and has, till date, not seen any stress build-up in USL, SME, or Motor Finance; however, this remains a key monitorable. It expects RoA to expand to 2.5-2.7%, on better margin, moderating opex, and credit cost at sub-1%.
Factoring in the current performance and medium-term outlook, Avinash Singh, Deputy Head of Research at Emkay Global Financial Services Ltd. revised estimates which results in ~8-9% rise in EPS.
Emkay Global retained its ‘Add’ rating on the stock and raised Tata Capital share price target to ₹390 from ₹350 earlier, implying FY28E P/B of ~2.6x.
According to Systematix, Tata Capital represents a well-diversified NBFC franchise backed by strong parentage from Tata Sons, a broad product suite, extensive distribution, and a CRISIL AAA credit rating.
“While profitability metrics currently trail leading peers, we expect operating leverage, NIM expansion, and lower credit costs to drive a gradual improvement in ROAs. We estimate AUM and EPS CAGR of ~23% and ~37% over FY26-28E, respectively,” said the brokerage house.
It retained a ‘Buy’ call on the stock and a target price of ₹400 per share, valuing the company at 2.7x FY28E P/ABV.
“Our FY27/FY28 PAT estimates are ~5-8% ahead of consensus largely driven by lower Credit cost and higher growth, as we believe the street remains conservative despite the company’s solid execution track record and clear levers for ROA improvement,” said Systematix.
At 10:50 AM, Tata Capital share price was trading 0.85% lower at ₹337.50 apiece on the BSE.
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