Tata Capital reported a net profit of $512 million for the financial year ended March 31, 2026 (FY26), reflecting a 32% increase from $387 million in FY25. The company’s net assets under management (AUM) rose 20% year-on-year to $29,293 million, while total gross loans grew 21% to $28,883 million. The strong performance was driven by growth across retail and SME segments, alongside the consolidation of Tata Motors Finance, which merged with the company effective May 8, 2025.

The company’s net total income for FY26 stood at $1,648 million, a 20% increase compared to the previous year. Pre-provisioning operating profit increased 27% to $1,017 million. Operating expenses for the year were $631 million, up 11% from FY25. The cost to income ratio improved to 38.3% in FY26 from 41.6% in the prior year.

Business Segment Performance

The diversified loan book showed robust growth across key categories. SME loans reached $8,026 million as of March 26, 2026, while home loans stood at $4,670 million. Corporate loans grew to $4,188 million. The company’s “phygital” distribution model supported this expansion, comprising 1,477 branches across 27 states and union territories, serving 1,074 locations.

Asset Quality and Ratios

Asset quality remained stable with a gross stage 3 loans ratio of 2.0% for the total portfolio as of March 26, 2026, compared to 1.9% in the previous year. The net stage 3 loans ratio was 0.9%. The provision coverage ratio (PCR) for the total portfolio stood at 56.2%. The annualized credit cost on average net loan book was 1.2% for FY26.

The company maintained strong capital adequacy, with a total capital to risk (CRAR) of 19.2% as of March 26, 2026. Tier-I capital was 17.1%, and Tier-II capital was 2.1%. The return on average equity (RoE) was 12.9% on a two-point average basis.

Tata Capital Limited has initiated a postal ballot process to seek shareholder approval for the issuance of Non-Convertible Debentures (NCDs) up to ₹7,000 crore on a private placement basis. The resolution seeks to ensure continuous authorization for raising funds during the interim period between the expiry of the current mandate on July 30, 2026, and the upcoming Annual General Meeting scheduled for August 2026. The funds will be raised within the overall borrowing limits of the company.

The Board of Directors, at its meeting held on June 17, 2026, approved the proposal to issue debentures in one or more tranches. The instruments may include secured, unsecured, subordinated, perpetual debt, market-linked redeemable debentures, or green bonds. The specific terms, including coupon rates and tenor, will be determined by the Board based on prevailing market conditions. This interim approval is required as the existing resolution valid until July 30, 2026, covers an aggregate amount of ₹30,000 crore, with a separate approval for the balance amount sought at the ensuing AGM.

The company has engaged National Securities Depository Limited (NSDL) to facilitate remote e-voting. Shareholders included in the Register of Members or List of Beneficial Owners as on the cut-off date of June 26, 2026, are eligible to vote. The remote e-voting period commences on Wednesday, July 1, 2026, at 9:00 a.m. (IST) and concludes on Thursday, July 30, 2026, at 5:00 p.m. (IST). Members must cast their votes electronically, as physical voting or voting through proxy is not permitted for this process.

M/s. Parikh & Associates, Practicing Company Secretaries, has been appointed to scrutinize the postal ballot process. Mr. N. P. Parikh or Ms. Jyotsna N. Ved will act as the Scrutinizer to ensure the process is conducted fairly. The results of the voting will be declared by the Chairman or an authorized person and posted on the company’s website, as well as on the websites of BSE Limited and National Stock Exchange of India Limited, following the conclusion of the voting period.