Tata Capital Limited Earnings Summary — Q4 FY2026
Tata Capital Reports Record Quarterly Performance with 46% Net Profit Growth and Asset Expansion
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 7 consecutive quarters.
- Revenue of ₹8,822 Cr is 15.1% higher year-on-year.
- Revenue has compounded at 12.4% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹1,547 Cr is 56.3% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 23.1% annualised across the period.
- Operating margin stands at 75.7% in Q1 FY2027.
- Operating margin expanded by 344 bps year-on-year.
- PBT margin is 24.5%.
- Expense growth of 0.8% remained below revenue growth of 15.1%.
- Operating profit of ₹6,679 Cr is 20.6% higher year-on-year.
- Operating leverage continues to improve.
- 4 of the last 4 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 84/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2019 | Q4 FY2018 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 8,822 | 8,160 | 7,976 | 7,737 | 7,665 | 7,478 | 7,104 | 7,185 | — | — |
| Expenses | Stable | 2,143 | 2,026 | 2,172 | 2,135 | 2,126 | 2,072 | 1,762 | 1,915 | — | — |
| Operating Profit | Improving | 6,679 | 6,134 | 5,804 | 5,602 | 5,539 | 5,406 | 5,342 | 5,270 | — | — |
| Operating Margin | Stable | 75.7% | 75.2% | 72.8% | 72.4% | 72.3% | 72.3% | 75.2% | 73.3% | — | — |
| Other Income | Volatile | 4 | 3 | -40 | 16 | 27 | 31 | 8 | 9 | — | — |
| Interest | Stable | 4,370 | 4,017 | 3,928 | 3,976 | 4,066 | 3,960 | 3,836 | 3,693 | — | — |
| Depreciation | Improving | 154 | 143 | 142 | 135 | 118 | 109 | 99 | 92 | — | — |
| Profit Before Tax | Improving | 2,159 | 1,978 | 1,695 | 1,507 | 1,382 | 1,369 | 1,415 | 1,494 | — | — |
| Tax | Improving | 531 | 512 | 430 | 388 | 341 | 369 | 364 | 361 | — | — |
| Net Profit | Improving | 1,547 | 1,502 | 1,257 | 1,097 | 990 | 1,052 | 1,076 | 1,076 | — | — |
| Net Margin | Stable | 17.5% | 18.4% | 15.8% | 14.2% | 12.9% | 14.1% | 15.1% | 15.0% | — | — |
Key Takeaways
- Net Profit surged 46.6% year-over-year to ₹1,466 Cr in Q4 FY26, outperforming revenue growth.
- The quarterly Financing Margin improved significantly to 26%, up from 19% in the same quarter last year.
- Total borrowing increased to ₹2.36 lakh crore, while equity capital grew to ₹4,217 Cr reflecting recent infusions.
- Asset quality remains extremely strong with a Gross NPA of 0.80% and a Net NPA of 0.40%.
- EPS for the quarter reached ₹3.54, its highest level in the reported multi-quarter sequence.
- Operating expenses were effectively managed, decreasing to ₹2,026 Cr from ₹2,172 Cr in the previous quarter despite revenue growth.
Management Guidance
Management remains focused on digital transformation and retail segment onboarding as key strategic pillars to maintain its position as India's 3rd largest diversified NBFC.
Sentiment Shift
Improving
Significant expansion in financing margins and record quarterly net profit growth indicate increasing operational efficiency and strong credit demand.
Outlook
The outlook remains strong with TCL leveraging its AAA rating and Tata Group heritage to capture market share in retail and SME lending while keeping asset quality stable.
From the Annual Report (Key Quotes)
“Tata Capital has transformed from a mid-sized lender into India's 3rd largest diversified NBFC.”
“The clarity in segmental reporting and the disclosure of Gross NPA (0.80%) and Net NPA (0.40%) reflect a high level of transparency.”
“The financing margin of 26% in the latest quarter suggests the company is effectively passing on interest costs.”
Official Quarterly Documents
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This summary is AI-generated from Tata Capital Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.