Tata Capital has allotted Secured Redeemable Non-Convertible Debentures (NCDs) amounting to Rs 2750 crore on a private placement basis. The allotment was finalized on July 07, 2026, under the series 'TCL Secured NCD "D" FY 2026-27-VIS-M'. The issuance is backed by a pari-passu charge on the company's moveable property, including receivables and book debts, providing security cover equivalent to 1.00 time the aggregate outstanding value of the debentures.

The NCDs carry a coupon rate of 7.88% per annum and an XIRR of 7.8613% per annum. Interest payments are scheduled for July 07, 2027, July 07, 2028, July 07, 2029, July 08, 2030, and July 07, 2031. The instruments have a tenor of 1826 days from the deemed date of allotment, with a maturity date set for July 07, 2031. Redemption will be made via bullet payment at face value of Rs 1,00,000 per NCD.

Key Details of the Allotment

Security and Ratings

The debentures are secured by a charge on the company's receivables and book debts arising from loans and investments. In the event of a default in interest or principal repayment, the company will pay additional interest at 2% per annum over the coupon rate for the defaulting period.

The credit ratings assigned to the issue are CRISIL AAA/Stable by CRISIL Ratings Limited and ICRA AAA/Stable by ICRA Limited. The securities are proposed to be listed on the National Stock Exchange of India Limited (NSE).

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.