AUM (ex-motor finance)
₹2.52 lakh crore
+28% YoY
Driven by sustained momentum across core segments, especially housing finance.
TATACAPITAL
Financial Services
14 May 2026
Tata Capital Ltd — 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%).
✓ Verified against BSE filing
2-Min Summary
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%.
Key Numbers
Disbursements (quarterly)
₹50,000 crore
+32% YoY
First time crossing ₹50,000 crore in a quarter, reflecting growing scale.
Credit cost (ex-motor)
0.8%
-20 bps QoQ
Improved asset quality with slippages at eight-quarter lows.
Cost-to-income ratio
38.3%
-335 bps YoY
Improved 335 bps YoY, within guided range of 38-39%, driven by operating leverage.
Management Guidance
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.
growthFY28 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.
marginsMotor finance business to resume growth in H1 FY27
Disbursements grew 32% sequentially in Q4; management expects AUM growth to resume from H1 FY27.
growthCost 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.
marginsKey Risks
Geopolitical tensions (West Asia conflict)
Ongoing conflict could impact inflation, energy prices, and global financial conditions, potentially affecting MSME and CV segments.
medium · management_commentaryEl 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.
medium · management_commentaryTightening 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.
medium · analyst_questionPotential 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.
low · management_commentaryNotable Quotes
Our approach on collections does not start from the stage when the bouncing happens. Our approach on collection starts before the banking happens.
We do believe that the right credit cost for us would be sub 1% and which is the guidance which we have given.
We are well placed to meet the guidance which we have given.