Tata Capital Posts Strong Q4FY26 Results; AUM Grows 20% YoY
Tata Capital Limited announced its audited consolidated financial results for the quarter and year ended March 31, 2026, driven by sustained growth and improvements in asset quality across its core businesses. The company highlighted its robust performance, which includes significant growth in Assets Under Management (AUM) and Profit After Tax (PAT).Mr. Rajiv Sabharwal, Managing Director & CEO of Tata Capital, noted the strong close to the fiscal year, attributing the success to healthy momentum across its operations.
"Excluding Motor Finance, AUM grew 28% year on year to ₹ 2,51,885 crore, while PAT increased 51% year on year to ₹ 1,459 crore in Q4FY26," stated Mr. Sabharwal. "Including Motor Finance, our performance was in line with stated guidance, with AUM growth of 20% year-on-year and PAT growth of 43% to ₹ 1,502 crore. Asset quality continued to improve across segments, with both slippages and credit costs trending lower."
The company also highlighted the strategic integration of artificial intelligence across its lending value chain. These initiatives helped strengthen risk management, reducing the credit cost by approximately 14 basis points year-on-year in FY26. Furthermore, AI-driven credit assessments now assist underwriting for 80% of the SME portfolio, compressing decision cycles and boosting credit manager productivity by 30%.
Consolidated Performance Highlights (Including Motor Finance)
For the consolidated results, AUM reached ₹ 2,77,275 crore, showing a 20% growth year-on-year. PAT grew by 43% year-on-year to ₹ 1,502 crore.The financial metrics for the consolidated entity across key quarters are detailed below:
| Particulars; ₹ crores | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | YoY% | FY25 | FY26 | YoY% |
|---|---|---|---|---|---|---|---|---|
| Assets under management (net) | 2,37,508 | 2,43,896 | 2,60,698 | 2,77,275 | 6% | 2,30,455 | 2,77,275 | 20% |
| Net total income | 3,626 | 3,774 | 4,052 | 4,146 | 2% | 12,978 | 15,597 | 20% |
| PAT (attributable to owners) | 990 | 1,097 | 1,257 | 1,502 | 19% | 3,665 | 4,846 | 32% |
Core Business Metrics (Excluding Motor Finance)
When excluding the Motor Finance business, the company showed significant acceleration. AUM grew 28% year-on-year to ₹ 2,51,885 crore as of March 31, 2026. Profit After Tax (PAT) grew 51% year-on-year to ₹ 1,459 crore in Q4FY26.Asset quality continued to improve, with annualizing credit costs recorded at 0.8% in Q4FY26, down from 1.0% in Q3FY26.
The performance comparison for the core segments is as follows:
| Particulars; ₹ crores | Q4FY25 | Q3FY26 | Q4FY26 | YoY% | FY25 | FY26 | YoY% |
|---|---|---|---|---|---|---|---|
| Assets under management (net) | 1,96,942 | 2,34,114 | 2,51,885 | 28% | 1,96,942 | 2,51,885 | 28% |
| Net total income | 2,861 | 3,594 | 3,740 | 31% | 10,607 | 13,866 | 31% |
| PAT (attributable to owners) | 964 | 1,258 | 1,459 | 51% | 3,712 | 4,869 | 31% |
Tata Capital Housing Finance Limited (TCHFL) Performance
The material subsidiary, Tata Capital Housing Finance Limited (TCHFL), reported robust growth, achieving an AUM increase of 29% year-on-year, reaching ₹ 86,653 crore as of March 31, 2026. Net total income grew 26% year-on-year to ₹ 1,016 crore in Q4FY26. PAT increased by 34% year-on-year to ₹ 527 crore from ₹ 394 crore in Q4FY25.Performance highlights for TCHFL:
| Particulars; ₹ crores | Q4FY25 | Q3FY26 | Q4FY26 | YoY% | FY25 | FY26 | YoY% |
|---|---|---|---|---|---|---|---|
| Assets under management (net) | 67,252 | 81,585 | 86,653 | 29% | 67,252 | 86,653 | 29% |
| Net total income | 808 | 934 | 1,016 | 26% | 2,834 | 3,676 | 30% |
| PAT | 394 | 458 | 527 | 34% | 1,499 | 1,836 | 22% |
TATACAP Stock Price Movement
Today, Tata Capital Limited shares edged higher to close at ₹340.6, marking a gain of 0.49% for the day. Trading activity was robust today, with the equity recording a total volume of 5.13 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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