Tata Capital reported that in Q4FY26, excluding motor finance, assets under management grew 28% year-on-year to ₹2,51,885 crore as on March 31, 2026, from ₹1,96,942 crore on March 31, 2025. Profit after tax rose 51% year-on-year to ₹1,459 crore in Q4FY26 from ₹964 crore in Q4FY25.
On a consolidated basis, including motor finance, AUM grew 6% quarter-on-quarter to ₹2,77,275 crore as on March 31, 2026, from ₹2,60,698 crore on December 31, 2025. Profit after tax (excluding non-recurring items) increased 16% quarter-on-quarter to ₹1,502 crore in Q4FY26 from ₹1,290 crore in Q3FY26, while including such items, PAT rose 19% quarter-on-quarter and was up 43% year-on-year.
Annualised credit cost stood at 0.8% in Q4FY26 versus 1% in Q3FY26. Profit after tax increased 51% year-on-year to ₹1,459 crore from ₹964 crore. Return on assets (RoA) stood at 2.5% compared with 2.1% in Q4FY25, while return on equity (RoE) stood at 14.6% versus 14.2%. Gross stage 3 stood at 1.5%, net stage 3 at 0.5%, and the provision coverage ratio at 65.1% as of March 31, 2026.
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On a consolidated basis, including motor finance, the retail and SME segments accounted for around 86% of net AUM, while unsecured retail formed 10.3% of net AUM. Motor finance constituted about 9% of net AUM, with the company focusing on improving business metrics before accelerating growth. The branch network stood at 1,477 branches across 27 states and union territories.
Net total income increased 2% sequentially to ₹4,146 crore from ₹4,052 crore. Operating expense on average net loan book remained at 2.5% in Q4FY26 versus Q3FY26, while the cost-to-income ratio stood at 38.3% versus 38.4%.
Annualised credit cost improved to 0.9% from 1.2% QoQ. RoA stood at 2.3% versus 2.1%, and RoE at 13.9% versus 13.1%. Gross stage 3 stood at 2%, net stage 3 at 0.9%, and the provision coverage ratio at 56.2%. Total equity stood at ₹44,658 crore, with a capital risk adequacy ratio at 19.0%.
Tata Capital has recommended a final dividend of ₹0.57 per equity share of face value ₹10 each for the financial year ended March 31, 2026, subject to approval of shareholders at the ensuing annual general meeting. The dividend will be paid after it is approved at the AGM.
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The wholly-owned subsidiary reported AUM growth of 29% year-on-year to ₹86,653 crore from ₹67,252 crore. Net total income rose 26% to ₹1,016 crore in Q4FY26 from ₹808 crore a year ago. Cost-to-income ratio improved to 29.4% from 32.0%. Credit cost stood at ₹24 crore, annualised at 0.1% of the average net loan book.
RoA stood at 2.6% versus 2.4%, and RoE at 19.9% versus 18.6%. Gross stage 3 stood at 0.7%, net stage 3 at 0.3%, and the provision coverage ratio at 55.1%. Capital adequacy ratio stood at 17.6% as of March 31, 2026.
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Rajiv Sabharwal, Managing Director and CEO, Tata Capital said, “The use of artificial intelligence remains a core strategic priority for the organisation. This year, our AI-first approach across the lending value chain delivered tangible results. Our portfolio monitoring platform has helped strengthen risk management and reduce our credit cost by 14bps year-on-year in FY26.”
He added, “Our Voice Hub is being used across sales, service and retention, with voice AI agents now originating 15% of direct personal loan business and carrying out 90% of welcome calls. AI-driven credit assessments now assist underwriting for 80% of our SME portfolio — compressing decision cycles and lifting credit manager productivity by 30%.”
Shares of Tata Capital Ltd ended at ₹340.40, up by ₹2.85, or 0.84%, on the BSE today, April 23.
