Tata Capital Ltd.Strong Q4 with 51% PAT Growth & AI-Driven Efficiency

Tata Capital delivered an exceptional Q4 FY26 performance, with profit after tax surging 51% year-on-year to ₹1,459 crores, excluding non-recurring items.

The company's assets under management, excluding Motor Finance, grew robustly at 28% YoY to ₹2.52 lakh crores, driven by strong momentum across all segments. Housing Finance continued its impressive trajectory with 29% YoY AUM growth and 34% PAT growth. The Motor Finance turnaround succeeded, achieving breakeven in Q3 and ₹43 crores profit in Q4 through strategic diversification and credit quality improvements. Return on assets expanded 40 basis points YoY to 2.5%, exceeding guidance, while credit costs remained industry-best at 0.8%.

Management showcased significant AI productivity gains, reducing SME underwriting time from two days to 20 minutes and automating 90% of welcome calls, driving cost-to-income improvement to 38.3%. The company reaffirmed FY28 targets of 23-25% AUM CAGR and 2.5-2.7% ROA, backed by adequate capital buffers and strategic focus on high-yield products.