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Tata Capital stock in focus: Brokerage firm, HDFC Securities, maintains an ‘ADD’ rating on Tata Capital while revising the target price to Rs 335. Tata Capital announced its Q4 results on April 2, posting a 43 per cent YoY growth in its consolidated net profit for the quarter ended March 31, 2026, at Rs 1,502 crore against Rs 1,052 crore in the year-ago period.
The brokerage’s positive outlook is driven by Q4 earnings exceeding expectations due to lower credit costs and strong AUM growth of approximately 28 per cent year-over-year. Here are other reasons why the brokerage maintained an add rating with a revised target price.
Tata Capital stock in focus: Brokerages give ‘Add’ call after Q4 results
HDFC Securities highlighted that the Q4 earnings of the company came in slightly ahead of expectations, driven by lower credit costs at 0.9 per cent.
The company reported strong AUM growth of around 28 per cent year-on-year, led by the SME and corporate segments.
The firm further highlights that the asset quality remains strong, backed by conservative underwriting practices.
Management guidance of approximately 23-25 per cent AUM CAGR and 17-18 per cent ROE remains a key monitorable.
Earnings estimates have been revised upward on the back of stronger loan growth. The stock is valued at 2.5x its estimated March 2028 ABVPS.
According to the firm, Tata Capital delivered a strong Q4 FY26 performance, supported by improved AUM growth, better asset quality, and lower credit costs.
The potential impact of the Iran war remains a key monitorable going forward.
The company is expected to maintain growth of around 23-25 per cent, driven by strong disbursements across product segments, robust offerings, and ongoing geographical expansion.
Margins are likely to expand due to a higher focus on increasing the share of higher-yield segments.
Growth momentum in the housing segment is expected to continue.
Earnings Per Share estimates are likely to be raised by 8-9 per cent, factoring in the strong growth outlook.
Non-bank lender Tata Capital on Thursday, April 23, reported its earnings for the quarter ended March 31, 2026 and also declared a dividend for its shareholders. The company posted a 43 per cent YoY growth in its consolidated net profit for the quarter ended March 31, 2026, at Rs 1,502 crore against Rs 1,052 crore in the year-ago period and Rs 1,257 crore in the preceding September quarter. The profit after tax (PAT) is attributable to the shareholders.
The company’s revenue from operations in the reporting quarter stood at Rs 8,160 crore, reporting a growth of 9 per cent YoY versus Rs 7,478 crore posted in the corresponding quarter of the last financial year.
The net interest income (NII) in the quarter under review stood at Rs 3,127 crore, a 28 per cent growth over Rs 2,438 crore posted by the company in the year-ago period.
The company’s net assets under management (AUM) in the reporting quarter stood at Rs 2,51,885 crore, up 28 per cent YoY over Rs 1,96,942 crore in Q4 FY25.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
