Tata Capital Limited has filed its quarterly monitoring agency report with stock exchanges, showcasing efficient utilization of proceeds from its Initial Public Offering (IPO). The report, prepared by CARE Ratings Limited for the quarter ended December 31, 2025, indicates that the company has deployed 98% of its fresh issue proceeds in accordance with the stated objectives.

IPO Details and Fund Deployment

The company's IPO, conducted from October 6-8, 2025, raised a total of ₹15,512 crores, making it one of the significant public offerings in the non-banking financial services sector. The issue structure comprised two components: a fresh issue worth ₹6,846 crores and an offer for sale amounting to ₹8,666 crores.

Fund Utilization Progress

According to the monitoring agency report, the fresh issue proceeds have been systematically deployed across the planned objectives. The primary allocation was directed toward augmenting the company's Tier-1 capital to meet future capital requirements, including onward lending activities arising from business growth.

Specific Fund Deployment

The monitoring report provides detailed insights into how the Tier-1 capital augmentation funds were utilized. Out of the ₹6,697 crores allocated for this purpose, ₹5,200 crores was specifically used for repayment of borrowings, while ₹1,497 crores was deployed toward onward lending activities. This strategic allocation aligns with the company's growth objectives in the non-banking financial services sector.

Unutilized Proceeds Management

As of December 31, 2025, ₹128 crores remains unutilized, primarily consisting of pending issue expenses. The monitoring agency noted that the total estimated issue-related expenses amount to ₹326 crores, shared among Tata Sons Limited, International Finance Corporation, and Tata Capital Limited. The company's share of the closing balance stands at ₹128 crores, while ₹145 crores is attributable to the other two parties involved in the offer for sale.

Compliance and Monitoring

CARE Ratings Limited, in its capacity as the monitoring agency, confirmed that all utilization aligns with disclosures made in the offer document. The report indicates no deviations from the stated objectives, no changes in the means of finance for disclosed objects, and no major deviations from earlier monitoring reports. All necessary government and statutory approvals related to the objectives have been obtained.

Timeline Performance

The company demonstrated efficient execution by completing the Tier-1 capital augmentation objective ahead of schedule. While the offer document specified a completion date of March 31, 2026, the company achieved this milestone by October 14, 2025, indicating strong project management and execution capabilities.

The Board of Directors and Audit Committee reviewed and approved the monitoring agency report during their meetings held on January 17, 2026, and January 19, 2026, respectively, confirming that the net proceeds were utilized for purposes stated in the prospectus without any material deviations.

Tata Capital Limited announced its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, showcasing strong operational performance across key metrics. The Board of Directors approved these results at their meeting held on January 19, 2026.

Strong Q3FY26 Financial Performance

The company delivered impressive results for Q3FY26 with significant growth across major financial parameters:

The revenue growth was primarily driven by higher interest income, which increased by 6.5% year-on-year to ₹5,219.64 crore. Fees and commission income also showed robust growth, rising to ₹361.61 crore from ₹286.27 crore in the corresponding quarter of the previous year.

Consolidated Results Outperform Standalone

On a consolidated basis, the company demonstrated even stronger performance with significant growth across key metrics:

The consolidated results reflect the strong performance of the entire group including subsidiaries and associates, with consolidated revenue reaching ₹7,975.00 crore compared to ₹7,103.60 crore in the previous year.

Nine-Month Performance Highlights

For the nine months ended December 31, 2025, the company maintained its growth trajectory:

Improved Capital Structure and Key Ratios

The company demonstrated significant improvement in its capital structure metrics. The debt-equity ratio improved substantially to 3.95 times in Q3FY26 from 5.40 times in Q3FY25, indicating enhanced financial stability. Net profit margin remained healthy at 13.66% for the quarter.

Key operational metrics showed mixed trends:

• Gross non-performing assets increased to 2.90% from 2.29% year-on-year
• Net non-performing assets rose to 1.37% from 0.95%
• Provision coverage ratio decreased to 53.56% from 59.24%
• Capital adequacy ratio improved significantly to 20.26% from 16.26%

Segment-wise Performance Analysis

The company's diversified business model showed strength across segments:

The financing activity segment, which forms the core business, continued to show steady growth. The 'Others' segment, comprising advisory services, wealth management, and distribution of financial products, demonstrated exceptional growth of 51.6%.

IPO Proceeds Utilization and Corporate Developments

Following its successful Initial Public Offer in October 2025, the company raised ₹6,846 crore through fresh issue of equity shares. The IPO proceeds utilization showed:

The company also reported exceptional items of ₹36.15 crore in Q3FY26, primarily related to the impact of new Labour Codes notified by the Government of India in November 2025.