Tata Capital Limited has delivered exceptional Q4FY26 financial results that align with management guidance, demonstrating robust performance across all key metrics. The company's board of directors approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, during a meeting held on April 23, 2026.

Q4FY26 Performance Meets Guidance Expectations

Excluding Motor Finance business, Tata Capital achieved remarkable growth with Profit After Tax (PAT) excluding non-recurring items growing 36% year-on-year, successfully meeting the company's guidance range of 32%-35%. The PAT including all items surged 51% year-on-year to ₹1,459 crore in Q4FY26 from ₹964 crore in Q4FY25. Net total income grew 31% year-on-year to ₹3,740 crore, while Assets Under Management (AUM) expanded 28% year-on-year to ₹2,51,885 crore.

Consolidated Performance Including Motor Finance

Including Motor Finance operations acquired in May 2025, the consolidated entity reported AUM of ₹2,77,275 crore (up 6% quarter-on-quarter) and PAT of ₹1,502 crore (up 16% quarter-on-quarter excluding non-recurring items). The consolidated performance reflects 20% year-on-year AUM growth and 38% year-on-year PAT growth for the full fiscal year.

AI-Driven Strategic Transformation

Managing Director & CEO Rajiv Sabharwal highlighted the company's AI-first approach as a core strategic priority. The artificial intelligence initiatives delivered tangible results across the lending value chain, with the portfolio monitoring platform helping reduce credit cost by approximately 14 basis points year-on-year in FY26. Voice AI agents now originate 15% of Direct Personal Loan business, while AI-driven credit assessments assist underwriting for 80% of the SME portfolio, improving credit manager productivity by 30%.

Enhanced Asset Quality and Risk Management

The company demonstrated continued improvement in asset quality metrics across all segments. Excluding Motor Finance, Gross Stage 3 assets stood at 1.5% with Net Stage 3 at 0.5% and provision coverage ratio at 65.1%. Annualized credit cost improved to 0.8% in Q4FY26 from 1.0% in Q3FY26, reflecting effective risk management practices.

Material Subsidiary Performance

Tata Capital Housing Finance Limited (TCHFL), the company's wholly-owned housing finance subsidiary, delivered strong performance with AUM growing 29% year-on-year to ₹86,653 crore. TCHFL's PAT increased 34% year-on-year to ₹527 crore in Q4FY26, with annualized ROA at 2.6% and ROE at 19.9%. The subsidiary maintained excellent asset quality with Gross Stage 3 at 0.7% and credit cost remaining low at annualized 0.1% of average net loan book.

Strategic Outlook and Market Position

Tata Capital operates as the third largest diversified NBFC in India with a comprehensive product suite spanning over 25 lending products. The company maintains a pan-India network of 1,477 branches across 27 states and union territories. With retail and SME segments constituting approximately 86% of Net AUM and unsecured retail forming 10.3% of Net AUM, the company is well-positioned for sustained growth while maintaining disciplined risk management practices.

Tata Capital Limited has filed its quarterly monitoring agency report for the period ended March 31, 2026, demonstrating significant progress in deploying proceeds from its Initial Public Offering. The report, mandated under SEBI regulations and prepared by CARE Ratings Limited, shows that the company has utilized 99% of its fresh issue proceeds in accordance with the stated objectives.

IPO Details and Structure

The company's IPO, conducted from October 06, 2025 to October 08, 2025, raised a total of Rs. 15,512 crore. The issue comprised two components: a fresh issue of Rs. 6,846 crore and an offer for sale of Rs. 8,666 crore. Tata Sons Private Limited serves as the promoter of the Non-Banking Financial Services company.

Proceeds Utilization Progress

The monitoring report reveals substantial deployment of the fresh issue proceeds across the designated objectives. The company allocated Rs. 6,697 crore for augmenting Tier-1 capital to meet future capital requirements, including onward lending arising from business growth. An additional Rs. 149 crore was earmarked for issue expenses.

Regulatory Compliance and Monitoring

The report confirms that all utilization aligns with disclosures made in the offer document, with no deviations from the stated objects. CARE Ratings Limited, serving as the monitoring agency, verified the deployment through multiple sources including bank statements, CA certificates, and management certifications. The company has obtained all necessary government and statutory approvals related to the issue objectives.

Key compliance highlights include:

• No material deviations from expenditures disclosed in the offer document
• No changes in the means of finance for disclosed objects
• All regulatory approvals obtained as required
• No unfavorable events affecting the viability of stated objects

Financial Deployment and Timeline

The company successfully completed the primary objective of augmenting Tier-1 capital ahead of schedule, finishing on October 14, 2025, compared to the target completion date of March 31, 2026. The remaining Rs. 80 crore represents unutilized issue expenses, which are maintained in the company's public issue account with ICICI Bank.

Board and Audit Committee Review

The Audit Committee and Board of Directors reviewed and approved the monitoring agency report during their meeting held on April 23, 2026. The Board noted that there were no deviations from the stated purposes and that net proceeds were utilized according to the prospectus disclosures. The report was subsequently filed with both BSE Limited and National Stock Exchange of India Limited in compliance with SEBI listing regulations.