Finance - NBFC · Founded 1991 · www.tatacapital.com · BSE 544574 · NSE TATACAP · ISIN INE976I01016
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Business
Tata Capital Ltd. is a Non-Banking Financial Company (NBFC) and a subsidiary of Tata Sons Private Limited, the holding company of the Tata Group. It offers a comprehensive suite of financial services to retail, corporate, and institutional customers across India. Its core business model revolves around lending and providing financial solutions, including consumer loans, business loans, wealth management, housing finance, vehicle finance, and infrastructure finance. The company primarily makes money through interest income generated from its loan portfolio, fees from various financial services, and income from investments.
Revenue Mix
Tata Capital operates across a diversified range of financial services. While specific revenue mix percentages are not publicly disclosed without detailed financial reports, its key segments typically include:
Retail Finance: Consumer durable loans, personal loans, home loans, two-wheeler loans, car loans, and credit cards.
Corporate Finance: Term loans, working capital loans, structured finance, and supply chain finance for businesses.
Wealth Management: Investment advisory, portfolio management services, and distribution of financial products.
Housing Finance: Home loans and loans against property.
Commercial Finance: Loans for equipment, commercial vehicles, and other business assets.
Industry
Tata Capital operates within the highly competitive and dynamic Indian financial services sector, specifically as a diversified NBFC. The industry is characterized by significant competition from public and private sector banks, other large NBFCs, and emerging FinTech companies. Tata Capital benefits significantly from its association with the esteemed Tata Group, which provides a strong brand recall, trust, and a robust platform for cross-selling. It is positioned as a reputable, diversified financial services provider catering to a broad spectrum of customers, leveraging its parentage to maintain a strong market presence.
MOAT
Tata Capital's primary competitive advantages include:
Brand Trust: The backing of the Tata Group instills immense trust and credibility among customers and investors, significantly aiding in customer acquisition and funding.
Diversified Portfolio: A broad range of products and services across retail, corporate, and wealth management segments helps de-risk the business and cater to varied customer needs.
Funding Access: As part of the Tata Group, it generally has better access to diverse funding sources compared to smaller, standalone NBFCs.
Established Network: A widespread branch network and digital presence enhance its reach and distribution capabilities.
Growth Drivers
Key factors that can drive Tata Capital's growth over the next 3-5 years include:
Indian Economic Growth: A growing economy typically translates to increased demand for credit across retail and corporate segments.
Financial Inclusion: Expanding financial services to semi-urban and rural areas, and underserved populations, offers significant growth potential.
Digital Transformation: Leveraging technology for customer onboarding, loan processing, and service delivery can improve efficiency, reduce costs, and expand reach.
Cross-Selling within Tata Ecosystem: Opportunities to cross-sell financial products to customers of other Tata Group companies.
Infrastructure Development: Government focus on infrastructure spending can boost demand for project finance and equipment loans.
Risks
Credit Risk: Potential for loan defaults due to economic downturns, industry-specific issues, or individual borrower distress, impacting asset quality.
Interest Rate Risk: Fluctuations in interest rates can affect the cost of borrowing for Tata Capital and its lending margins.
Regulatory Risk: Changes in RBI regulations for NBFCs (e.g., capital adequacy, asset classification, provisioning norms) can impact profitability and operational flexibility.
Competition: Intense competition from banks and other NBFCs can pressure lending rates and margins.
Liquidity Risk: Difficulty in raising funds at competitive rates, especially during periods of market stress.
Management & Ownership
Tata Capital Ltd. is a wholly-owned subsidiary of Tata Sons Private Limited, the principal investment holding company and promoter of Tata companies. This signifies strong parental backing and strategic alignment with the broader Tata Group vision. The management team is expected to be professional and experienced, drawing from the deep talent pool and corporate governance standards typically associated with the Tata Group.
Outlook
Tata Capital benefits significantly from its strong parentage under the Tata Group, which provides a robust brand, access to capital, and an extensive ecosystem for growth. Its diversified product portfolio positions it well to capture opportunities across various segments of the growing Indian financial market. However, the company operates in a highly competitive and regulated environment, facing challenges from interest rate volatility, potential asset quality concerns during economic downturns, and the need for continuous technological adaptation. Its ability to prudently manage credit cycles, maintain strong asset quality, and effectively leverage digital channels will be crucial for sustained performance.
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| #(Fig in Cr.) | Sep 2024 | Dec 2024 | Mar 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Operating Revenue | 7185 | 7104 | 7478 | 7737 | 7975 | 8160 |
| Other Income | 8 | 8 | 31 | 12 | 3 | 2 |
| Total Income | 7192 | 7111 | 7509 | 7750 | 7979 | 8162 |
| Total Expenditure | 1915 | 1762 | 2070 | 2135 | 2172 | 2026 |
| Operating Profit | 5277 | 5349 | 5439 | 5614 | 5807 | 6137 |
| Interest Expense | 3693 | 3836 | 3960 | 3976 | 3928 | 4017 |
| Depreciation | 92 | 99 | 109 | 135 | 142 | 143 |
| Profit Before Tax | 1492 | 1414 | 1370 | 1504 | 1694 | 1978 |
| Provision for Tax | 361 | 364 | 369 | 388 | 430 | 512 |
| Profit After Tax | 1131 | 1050 | 1001 | 1115 | 1264 | 1465 |
| Adjustments | -55 | 26 | 50 | -18 | -7 | 37 |
| Profit After Adjustments | 1076 | 1076 | 1052 | 1097 | 1257 | 1502 |
| Adjusted Earnings Per Share | 2.9 | 2.9 | 2.8 | 2.7 | 3 | 3.6 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Revenue | 3849 | 4647 | 5883 | 6585 | 8935 | 9589 | 9835 | 10109 | 13629 | 18175 | 28313 | 31350 |
| Other Income | 419 | 399 | 1345 | 939 | 1010 | 224 | 157 | 202 | 9 | 144 | 150 | 48 |
| Total Income | 4268 | 5046 | 7228 | 7525 | 9945 | 9813 | 9993 | 10312 | 13638 | 18319 | 28463 | 31400 |
| Total Expenditure | 1269 | 1424 | 2855 | 2308 | 3069 | 2984 | 2806 | 2869 | 2972 | 3986 | 8015 | 8403 |
| Operating Profit | 2998 | 3622 | 4373 | 5216 | 6876 | 6829 | 7187 | 7443 | 10665 | 14333 | 20447 | 22997 |
| Interest Expense | 2481 | 2878 | 3509 | 3923 | 5230 | 5807 | 5235 | 4929 | 6649 | 9642 | 15136 | 15881 |
| Depreciation | 105 | 128 | 154 | 248 | 288 | 386 | 334 | 276 | 226 | 288 | 390 | 529 |
| Profit Before Tax | 412 | 616 | 710 | 1045 | 1358 | 636 | 1618 | 2348 | 3937 | 4392 | 4919 | 6546 |
| Provision for Tax | 111 | 207 | 240 | 419 | 386 | 512 | 370 | 547 | 991 | 1065 | 1264 | 1699 |
| Profit After Tax | 301 | 409 | 470 | 626 | 972 | 124 | 1247 | 1801 | 2946 | 3327 | 3655 | 4845 |
| Adjustments | 5 | -4 | -11 | -21 | -192 | 172 | -122 | -153 | 83 | -177 | 10 | 62 |
| Profit After Adjustments | 306 | 405 | 460 | 605 | 780 | 296 | 1126 | 1648 | 3029 | 3150 | 3665 | 4908 |
| Adjusted Earnings Per Share | 0.8 | 1 | 1.2 | 2.2 | 2.4 | 0.8 | 3.3 | 4.8 | 8.6 | 8.5 | 9.7 | 12.1 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 56% | 41% | 24% | 22% |
| Operating Profit CAGR | 43% | 40% | 25% | 21% |
| PAT CAGR | 10% | 27% | 97% | 28% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | NA% | NA% | NA% | NA% |
| ROE Average | 14% | 17% | 16% | 13% |
| ROCE Average | 10% | 9% | 9% | 9% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 5077 | 5792 | 6044 | 4249 | 7566 | 8821 | 9973 | 11713 | 17340 | 23417 | 33192 |
| Minority's Interest | 105 | 123 | 162 | 550 | 551 | 495 | 834 | 1123 | 809 | 1165 | 1179 |
| Borrowings | 15173 | 20017 | 19158 | 37544 | 33446 | 43659 | 41717 | 54437 | 71362 | 97929 | 135270 |
| Current Liability | 16551 | 20395 | 28844 | 22803 | 39413 | 29707 | 29531 | 34383 | 45345 | 52894 | 77477 |
| Other Liabilities & Provisions | 144 | 952 | 997 | -718 | 866 | -51 | 136 | -121 | 389 | 822 | -41 |
| Total Liabilities | 37050 | 47279 | 55205 | 64427 | 81842 | 82630 | 82191 | 101534 | 135245 | 176227 | 247077 |
| Loans | 33310 | 42348 | 51210 | 60442 | 75964 | 74681 | 73626 | 90111 | 116789 | 157761 | 221950 |
| Investments | 2092 | 2191 | 1143 | 1695 | 1687 | 1484 | 1988 | 2976 | 4637 | 3978 | 2890 |
| Fixed Assets | 789 | 901 | 915 | 819 | 1049 | 1076 | 880 | 699 | 713 | 1187 | 2000 |
| Other Loans | 139 | 1032 | 928 | 263 | 0 | 155 | 142 | 166 | 158 | 162 | 199 |
| Other Non Current Assets | 90 | 106 | 139 | 287 | 155 | 422 | 191 | 252 | 273 | 308 | 536 |
| Current Assets | 630 | 701 | 871 | 897 | 2964 | 4790 | 5343 | 7310 | 12655 | 12829 | 19499 |
| Total Assets | 37050 | 47279 | 55205 | 64427 | 81842 | 82630 | 82191 | 101534 | 135245 | 176227 | 247077 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 314 | 175 | 127 | 345 | 172 | 1878 | 4302 | 2027 | 2082 | 3059 | 6771 |
| Cash Flow from Operating Activities | -4968 | -7919 | -7030 | -8418 | -14656 | 286 | 3137 | -14387 | -23190 | -37999 | -29872 |
| Cash Flow from Investing Activities | -741 | -341 | 707 | -304 | -136 | 381 | -2626 | -2617 | -2270 | 5757 | -40 |
| Cash Flow from Financing Activities | 5620 | 8211 | 6540 | 8550 | 15965 | 1757 | -2787 | 17056 | 26430 | 35952 | 29412 |
| Net Cash Inflow / Outflow | -88 | -48 | 218 | -172 | 1172 | 2424 | -2276 | 52 | 970 | 3711 | -500 |
| Closing Cash & Cash Equivalent | 225 | 127 | 344 | 172 | 1345 | 4302 | 2027 | 2082 | 3059 | 6771 | 9478 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 0.83 | 1.02 | 1.16 | 2.18 | 2.39 | 0.79 | 3.25 | 4.76 | 8.64 | 8.51 | 9.74 |
| CEPS(Rs) | 1.46 | 1.94 | 2.25 | 3.16 | 3.86 | 1.47 | 4.57 | 6 | 9.04 | 9.76 | 10.75 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.16 | 0.16 | 0.21 | 0.42 |
| Book NAV/Share(Rs) | 14.86 | 15.82 | 15.15 | 14.81 | 23.12 | 25.42 | 28.73 | 33.73 | 49.1 | 63.08 | 76.95 |
| Net Profit Margin | 7.81 | 8.8 | 7.99 | 9.5 | 10.88 | 1.3 | 12.68 | 17.81 | 21.61 | 18.31 | 12.91 |
| Operating Margin | 75.18 | 75.18 | 71.72 | 75.44 | 73.73 | 67.2 | 69.68 | 71.98 | 77.67 | 77.21 | 70.83 |
| PBT Margin | 10.7 | 13.26 | 12.08 | 15.87 | 15.2 | 6.64 | 16.45 | 23.22 | 28.88 | 24.17 | 17.37 |
| ROA(%) | 0.88 | 0.97 | 0.92 | 1.05 | 1.33 | 0.15 | 1.51 | 1.96 | 2.49 | 2.14 | 1.73 |
| ROE(%) | 7.49 | 9.63 | 10.96 | 15.08 | 16.68 | 1.52 | 13.3 | 16.65 | 20.39 | 16.4 | 13.97 |
| ROCE(%) | 8.97 | 8.82 | 8.91 | 9.03 | 9.68 | 8.17 | 8.57 | 8.22 | 9.26 | 9.29 | 9.71 |
| Price/Earnings(x) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Price/Book(x) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 8.7 | 9.1 | 8.3 | 8.77 | 7.91 | 7.42 | 7.17 | 8.66 | 8.33 | 7.97 | 7.13 |
| EV/Core EBITDA(x) | 11.16 | 11.68 | 11.17 | 11.07 | 10.28 | 10.42 | 9.81 | 11.76 | 10.64 | 10.11 | 9.87 |
| Interest Earned Growth(%) | 16.14 | 20.74 | 26.6 | 11.94 | 35.68 | 7.32 | 2.42 | 2.79 | 34.81 | 33.36 | 55.78 |
| Net Profit Growth | 51.84 | 36.1 | 14.93 | 33.11 | 55.34 | -87.22 | 904.07 | 44.37 | 63.58 | 12.94 | 9.86 |
| EPS Growth(%) | 46.25 | 23.93 | 13.73 | 87.42 | 9.34 | -67.05 | 313.38 | 46.41 | 81.5 | -1.51 | 14.49 |
| Interest Coverage(x) % | 1.17 | 1.21 | 1.2 | 1.27 | 1.26 | 1.11 | 1.31 | 1.48 | 1.59 | 1.46 | 1.33 |
| # | Oct 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|
| Promoter | 85.41 | 85.41 | 85.41 |
| FII | 3.31 | 4.63 | 4.88 |
| DII | 3.03 | 3.31 | 3.6 |
| Public | 8.25 | 6.65 | 6.11 |
| Others | 0 | 0 | 0 |
| Total | 100 | 100 | 100 |
| # | Oct 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|
| Promoter | 362.56 | 362.56 | 362.56 |
| FII | 14.05 | 19.66 | 20.72 |
| DII | 12.88 | 14.05 | 15.27 |
| Public | 35.01 | 28.22 | 25.94 |
| Others | 0 | 0 | 0 |
| Total | 424.49 | 424.49 | 424.49 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | +56% | +41% | +24% | +22% |
| Operating Profit CAGR | +43% | +40% | +25% | +21% |
| PAT CAGR | +10% | +27% | +97% | +28% |
| Share Price CAGR | — | — | — | — |
| ROE Average | +14% | +17% | +16% | +13% |
| ROCE Average | +10% | +9% | +9% | +9% |
| # | Oct 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|
| Promoter | 85.41 | 85.41 | 85.41 |
| FII | 3.31 | 4.63 | 4.88 |
| DII | 3.03 | 3.31 | 3.6 |
| Public | 14.59 | 14.59 | 14.59 |
| Others | 0 | 0 | 0 |
| Total | 100 | 100 | 100 |
| # | Oct 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|
| Promoter | 362.56 | 362.56 | 362.56 |
| FII | 14.05 | 19.66 | 20.72 |
| DII | 12.88 | 14.05 | 15.27 |
| Public | 61.93 | 61.93 | 61.93 |
| Others | 0 | 0 | 0 |
| Total | 424.49 | 424.49 | 424.49 |
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