Tata Capital reported a strong set of results for the fourth quarter of financial year 2025-26, showing solid growth across key financial metrics. The company’s consolidated net profit rose by nearly 43% year-on-year to ₹1,502 crore, compared to ₹1,051 crore in the same quarter last year. This reflects strong business momentum and improved performance across its lending operations.
One of the key drivers of growth was the rise in net interest income (NII), which increased by 28% year-on-year to ₹3,127 crore. Higher lending activity and improved yields supported this growth, indicating steady demand for credit across segments.
The company also reported strong expansion in its assets under management (AUM). AUM grew by 28% year-on-year to ₹2.52 lakh crore in the March quarter, compared to ₹1.97 lakh crore a year ago. This increase shows that Tata Capital continues to scale its lending book and expand its presence across retail, SME, and corporate segments.
Operational efficiency remained stable during the quarter. The company’s annualised operating expense on its average loan book stayed at 2.3%, unchanged from the previous year. This indicates that despite rapid growth, the company has been able to maintain cost discipline.
Management highlighted that asset quality has also improved. Lower slippages and reduced credit costs across segments reflect better risk management practices. This is important for a lending business, as it supports sustainable growth and protects profitability.
Technology, especially artificial intelligence, is playing a key role in the company’s strategy. Tata Capital has been using AI across different parts of its lending process, including credit assessment, customer service, and portfolio monitoring. These tools have helped reduce credit costs, improve decision-making speed, and increase productivity.
For example, AI-based systems are now assisting underwriting for a large portion of the SME portfolio, while automated voice systems are being used in customer interactions. The company has also implemented digital tools to process large volumes of documents efficiently, improving overall operational performance.
The board has recommended a final dividend of ₹0.57 per equity share for FY26, subject to shareholder approval. This reflects the company’s consistent earnings performance and its ability to return value to shareholders.
From a broader perspective, management remains positive about the overall business environment. While global uncertainties continue, stable domestic economic conditions and supportive policies are expected to drive credit growth in India.
Overall, Tata Capital’s Q4 performance highlights strong growth in lending, steady profitability, and improving operational efficiency. The combination of business expansion and technology adoption positions the company well for future growth, although maintaining asset quality and managing risks will remain important going forward.