Tata Capital Share Price Declines Following Q4 Earnings Release
Tata Capital Share Price Declines After Q4 Results
Tata Capital, the non-banking finance company (NBFC) of the Tata Group, reported a consolidated net profit of ₹1,502.02 crore for the fourth quarter of FY26, registering a growth of 42.8% from ₹1,051.70 crore in the same period last year.
The company's revenue from operations in Q4FY26 stood at ₹8,160 crore, up 9% from ₹7,478 crore, year-on-year (YoY). Net interest income (NII), excluding motor finance, jumped 28% to ₹3,127 crore from ₹2,438 crore, YoY. Consolidated assets under management (AUM) grew by 20% YoY to ₹2,77,275 crore as on March 31, 2026. Ex-Motor Finance AUM stood at ₹2,51,885 crore, up 28% YoY.
The company posted a decent quarter, logging higher than expected AUM growth and asset quality, lower credit cost, and in-line PAT on slightly softer net interest margin (NIM) due to strong corporate loan growth. Tata Capital's management said it is actively assessing the impact of the ongoing global conflict and has, till date, not seen any stress build-up in USL, SME, or Motor Finance; however, this remains a key monitorable.
The company expects Return on Assets (RoA) to expand to 2.5-2.7%, on better margin, moderating operating expenses (opex), and credit cost at sub-1%. Factoring in the current performance and medium-term outlook, Avinash Singh, Deputy Head of Research at Emkay Global Financial Services Ltd., revised estimates which result in a ~8-9% rise in Earnings Per Share (EPS).
| Brokerage Firm | Rating | Target Price | P/B of FY28E |
|---|---|---|---|
| Emkay Global | 'Add' | ₹390 | ~2.6x |
| Systematix | 'Buy' | ₹400 | 2.7x FY28E P/A |
According to Systematix, Tata Capital represents a well-diversified NBFC franchise backed by strong parentage from Tata Sons, a broad product suite, extensive distribution, and a CRISIL AAA credit rating. The brokerage house retained a 'Buy' call on the stock and a target price of ₹400 per share, valuing the company at 2.7x FY28E P/ABV. At 10:50 AM, Tata Capital share price was trading 0.85% lower at ₹337.50 apiece on the BSE.
Investor Takeaway
Investors should be cautious about buying Tata Capital shares after the Q4 earnings release.
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