Tata Capital reported a strong performance for the quarter ended March 2026 (Q4 FY26), with robust growth in assets under management and profitability, supported by improved asset quality and stable cost metrics.
The company’s assets under management (AUM) rose 28% year-on-year to ₹2,51,885 crore as of March 31, 2026, compared to ₹1,96,942 crore in the corresponding period last year. The gross loan book increased 26% YoY to ₹2,50,066 crore, while the net loan book also grew 26% YoY to ₹2,45,932 crore.
Net total income for the quarter stood at ₹3,740 crore, up 31% YoY from ₹2,861 crore in Q4 FY25, driven by strong growth in both interest and fee income. Net interest income rose to ₹3,127 crore, while fee income increased 35% YoY to ₹646 crore.
Profitability remained strong, with profit after tax (PAT) rising 51% YoY to ₹1,459 crore from ₹964 crore in the year-ago quarter. Pre-provisioning operating profit grew 34% YoY to ₹2,390 crore, while profit before tax increased 54% YoY to ₹1,920 crore.
On the cost front, operating expenses rose 25% YoY to ₹1,350 crore. However, the cost-to-income ratio improved to 36.1% from 37.8% in the year-ago period, indicating better operating efficiency.
Asset quality metrics remained stable, with gross stage 3 assets at 1.5% and net stage 3 at 0.5% as of March 31, 2026. The provision coverage ratio stood at 65.1%. Credit cost improved to 0.8% in Q4 FY26 compared to 1.0% in the previous quarter.
The company also reported improved return ratios, with annualised return on assets (ROA) at 2.5% compared to 2.1% a year ago, while return on equity (ROE) stood at 14.6% versus 14.2% in Q4 FY25.
For the full year FY26, Tata Capital reported net total income of ₹13,866 crore, up 31% YoY, while PAT (excluding non-recurring items) grew 36% YoY to ₹4,896 crore.
The performance reflects continued growth momentum across lending segments, supported by strong disbursements, stable asset quality, and disciplined cost management.