According to reports from The Economic Times, The Hindu BusinessLine, CNBC TV18, Business Standard, and Mint, Tata Capital is entering India's fast-growing gold loan market through the acquisition of a majority stake in Kerala-based non-banking financial company Yogakshemam Loans Ltd (Yogloans). The transaction involves a share purchase from existing shareholders and a primary capital infusion of approximately ₹93 crore, based on a pre-money equity valuation of up to ₹318 crore. The deal was approved by Tata Capital's board on July 13, 2026, with the board meeting beginning at 8:00 a.m. and concluding at 9:05 a.m. on that day. As reported by Mint, this marks Tata Capital's entry into the gold loan business, adding a secured lending product with significant growth potential to their retail lending portfolio and supporting their strategy of building a diversified lending franchise. The proposed all-cash transaction is valued at ₹360-365 crore, based on the disclosures made by the company to the exchanges. The purchase is expected to be completed within eight months of the securities subscription and purchase agreement, according to the company's disclosure, with Yogloans becoming a subsidiary of Tata Capital once completed.
As reported by The Hindu BusinessLine, CNBC TV18, Business Standard, and Mint, Tata Capital will acquire an approximately 88.6% stake in the gold loan-focused NBFC through this strategic move. The consideration payable by TCL for purchase of equity shares from the sellers including Unnikrishnan Idicharm Veetil, Sathyalakshmy M, Abhijith Unnikrishnan, Ramachandran Ottapathu, Jalajkumari Ramachandran, Vidya Sanooj and Sathianarayanan M will be determined in accordance with the terms of the Securities Subscription and Purchase Agreement (SSPA), based inter alia on the net worth of the target as at September 30, 2026. According to the audited financial statements of the target for FY 2025-26, Yogakshemam Loans Ltd has generated a turnover of ₹140.38 crore with a profit after tax of ₹14.21 crore. As at March-end 2026, the target company had assets under management of approximately ₹708 crore. The company intends to consolidate at an appropriate stage, subject to requisite approvals. Following the completion of the deal, Tata Capital will hold around 88.6% of the company's issued and paid-up share capital on a fully-diluted basis.
As reported by The Economic Times, The Hindu BusinessLine, CNBC TV18, Business Standard, and Mint, Yogakshemam Loans Ltd, which was incorporated in February 1991 and is headquartered in Thrissur, operated through a network of 162 branches across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh as at March 31, 2026. This established presence provides Tata Capital with immediate access to an existing branch network, customer franchise and experienced management team in the gold loan market. The acquisition will provide Tata Capital with approximately 32,000 gold loan customers and strong capabilities in sourcing, underwriting and servicing over more than a decade in the gold loans business. The business is RBI-registered and focused mainly on gold loans, with about 85% of the book in gold loans as of March 31, 2026. The business is led by Unnikrishnan Idicharm Veetil, who will continue to lead Yogloans post-acquisition, ensuring continuity for customers, employees and business partners. The acquisition represents Tata Capital's entry into India's fast-growing gold loan market through an established player in the secured lending segment, expanding the company's retail lending portfolio by leveraging Yogloans' existing presence in the gold loan market.
According to The Economic Times, Tata Capital's decision to buy an 88.6% stake in Kerala-based Yogakshemam Loans Ltd is a sign of where India's lending industry sees its next growth engine. As unsecured retail credit slows and regulators tighten oversight, lenders are increasingly gravitating towards secured products that offer strong yields with relatively low credit risk. Gold loans are no longer viewed as a niche product concentrated in southern India but as a mainstream retail lending opportunity with national scale. The sector has become so attractive that gold loans overtook vehicle loans as the largest securitised asset class during the April-June quarter, accounting for nearly one-third of all securitisation volumes. According to a recent Experian India report, the share of gold loans in the retail loan portfolio has more than doubled in the past four years, with the share of gold loans in overall retail credit sourcing rising steadily from 18% in FY23 to 41% in FY26. The move also mirrors a wider trend, with L&T Finance acquiring the gold loan business of Paul Merchants Finance last year and InCred Finance buying TruCap Finance's gold loan business. The acquisition gives Tata Capital an immediate presence in the secured gold loan segment, where established players such as Muthoot Finance, Manappuram Finance and banks have expanded rapidly amid sustained demand for collateral-backed retail credit. The growing deal activity reflects the appeal of gold loans at a time when lenders are seeking secured products with granular ticket sizes, faster turnover and better risk-adjusted yields.
The acquisition comes at a time when demand for gold loans has increased in the past few months amid higher prices and push for secured credit. According to Moneycontrol, outstanding credit extended by non-banking financial companies (NBFCs) against gold jewellery surged nearly 70% year-on-year in May, marking the fastest growth among all major lending segments. Outstanding loans against gold jewellery stood at ₹3.29 lakh crore at the end of May 2026, up 69.9% from ₹1.94 lakh crore a year earlier. This surge in demand validates the strategic timing of Tata Capital's entry into the gold loan market. The acquisition is an all-cash transaction and is based on a pre-money equity valuation of the company of up to ₹318 crore. Rajiv Sabharwal, Managing Director & CEO of TCL, stated that this transaction marks Tata Capital's entry into the gold loan business, adding a secured lending product with significant growth potential to their retail lending portfolio and supporting their strategy of building a diversified lending franchise. The combination of Yogloans' market expertise with Tata Capital's trusted brand, capital strength, technology and risk management capabilities is expected to accelerate growth and create an enhanced experience for customers. The deal provides Tata Capital with an operating platform in gold loans, a secured lending product that typically offers better returns on assets and low credit costs because loans are backed by liquid collateral.
Tata Capital Ltd's shares experienced a decline of 2.25 percent, settling at a last traded price of ₹349.55 at 2:40 pm GMT on Thursday, as reported by Moneycontrol. The stock is a constituent of the Nifty Next 50 index. Based on Moneycontrol's analysis as of July 9, 2026, investor sentiment for Tata Capital is considered bullish. On a consolidated basis, Tata Capital has demonstrated consistent growth across its key financial metrics, both on a quarterly and annual basis. Revenue grew from ₹7,478.07 crore in March 2025 to ₹8,160.10 crore in March 2026, representing an overall increase of 9.12 percent. Net Profit saw substantial improvement, rising from ₹1,001.30 crore in March 2025 to ₹1,465.29 crore in March 2026, marking a significant 46.34 percent increase. Similarly, Earnings Per Share (EPS) followed this positive trend, advancing from ₹2.66 to ₹3.54 over the same period, a growth of 33.08 percent. On an annual consolidated basis, Tata Capital's revenue surged from ₹13,628.85 crore in 2023 to ₹31,539.89 crore in 2026, demonstrating a substantial increase of 131.42 percent over the three-year period. Net Profit nearly doubled, growing from ₹2,799.07 crore in 2023 to ₹4,886.05 crore in 2026, representing a 74.56 percent growth. The company has also announced a final dividend of ₹0.57 per share (5.7 percent) with a record date of July 27, 2026.
