Tata Capital vs Aptus Value Housing Q4 FY26

Tata Capital delivered a strong Q4 FY26, with PAT (ex-motor finance) surging 51% YoY to ₹1,459 crore, driven by lower credit costs (0.8%) and improved asset quality (net NPA 0.5%). AUM grew 28% YoY (ex-motor) to ₹2.52 lakh crore, led by housing finance (29% YoY) and retail momentum. Disbursements crossed ₹50,000 crore for the first time. Management guided for FY27 AUM growth of 23-25% and expects cost of funds to decline further. The motor finance business turned profitable (₹43 crore PAT) and is expected to resume growth in H1 FY27. Key risks include geopolitical tensions (West Asia conflict) impacting MSME and CV segments, though management noted no material stress yet. The company remains on track to achieve its FY28 ROA target of 2.5-2.7%.

Guidance read

FY27 AUM growth of 23-25%: Management expects overall AUM growth in the range of 23-25% for FY27, supported by retail and housing momentum. FY28 ROA target of 2.5-2.7%: Reiterated target of achieving ROA between 2.5% and 2.7% by FY28, driven by margin expansion and cost efficiencies. Motor finance business to resume growth in H1 FY27: Disbursements grew 32% sequentially in Q4; management expects AUM growth to resume from H1 FY27. Cost of funds expected lower in FY27 vs FY26: Management expects overall cost of funds in FY27 to be lower than FY26 due to repricing of liabilities.

Risk read

Key risks include Geopolitical tensions (West Asia conflict) — Ongoing conflict could impact inflation, energy prices, and global financial conditions, potentially affecting MSME and CV segments.; El Nino impact on rural demand — Evolving El Nino conditions remain a watch point for potential impact on food inflation and rural demand, which could affect asset quality.; Tightening liquidity and rising incremental borrowing costs — March saw hardening of rates due to liquidity tightness; while short-term costs eased in April, long-term costs remain elevated.; Potential stress in MSME sub-segments — Management has tightened norms in certain MSME sub-segments (e.g., travel-related) due to secondary impacts from geopolitical developments..

Promise ledger

Scorecard data is being built as historical quarters are processed.

Aptus Value Housing Finance delivered a strong Q4 FY26 with disbursements of ₹1,242 crore (highest ever, +17% YoY) and PAT growth of 26% YoY to ₹261 crore. AUM grew 21% YoY to ₹13,117 crore, driven by higher ticket sizes (discontinued sub-₹7 lakh loans) and expansion into Maharashtra and Odisha. Spreads improved 10bps to 9% due to lower cost of funds (8.1%). Collection efficiency rose to 100.5%, though GNPA increased to 1.52% (vs 1.19% in FY25) mainly from NBFC portfolio. Management guided for 22-24% AUM growth in FY27 and sustained ROE above 20%, supported by 60 new branches and connector channel. Risk: rising competition in Tamil Nadu and potential yield compression from calibrated lending rates.

Guidance read

AUM growth of 22-24% in FY27: Management expects sustainable AUM growth driven by new branches, higher ticket sizes, and connector channel. ROE above 20% sustainable: Management confident of maintaining ROE above 20% despite slight yield compression, supported by productivity gains. Credit cost guidance of 0.5% ±0.1%: Credit cost expected to remain in the range of 40-60 bps, consistent with FY26. Opex to AUM ratio of 2.6-2.8%: Operating expenses as a percentage of AUM to be maintained within this range, with investments in technology.

Risk read

Key risks include Intense competition in Tamil Nadu — Competitors poaching staff and high attrition could impact growth and collection efficiency in Tamil Nadu.; Yield compression from rate cuts — Calibrated lending rate reductions for incremental housing loans may reduce spreads by 15-20bps, impacting profitability.; Rising GNPA in NBFC portfolio — GNPA increased to 1.52% due to higher stress in NBFC segment (20-30bps higher than housing), requiring stronger collection efforts.; Potential increase in borrowing costs — Management noted incremental cost of funds may rise slightly, which could offset some spread benefits..

Promise ledger

Scorecard data is being built as historical quarters are processed.