Shares of Tata Capital Limited were trading 3% lower at ₹357.70 on Monday, June 22, 2026, following a significant rally that propelled them to an all-time high last week. According to The Economic Times, the stock had jumped 21% in one month to hit a fresh all-time high of ₹379.95 on Friday, marking a dramatic turnaround from earlier lows. The stock had previously dropped over 10% to hit a 52-week low of ₹296 earlier this month, highlighting the volatility in recent trading sessions. Sell orders dominated trading activity, accounting for 68.90% of total traded quantity.
The stock's decline followed Friday's rally, which saw a 6.18% single-session gain to ₹366.80. As reported by The Hindu BusinessLine, the surge was triggered by the company's board approval on June 17, 2026, of a plan to raise up to ₹36,000 crore through Non-Convertible Debentures (NCDs) on a private placement basis, subject to shareholder approval. The fundraise may be executed in one or more tranches and could span multiple instrument types including secured, unsecured, subordinated, perpetual debt, market-linked redeemable debentures, and green bonds.
The company's robust Q4 performance has significantly boosted investor confidence, with The Economic Times reporting that net profit surged 43% year-on-year during the quarter. Revenue from operations grew 9% YoY to ₹8,160 crore, while net interest income (NII) rose 28% YoY to ₹3,127 crore. Net assets under management (AUM) grew 28% YoY to nearly ₹2.52 lakh crore at the end of the quarter. The company's annualised operating expense on the average net loan book remained stable at 2.3%, while the cost-to-income ratio improved to 36.1%. Annualised credit cost slightly reduced to 0.8%, while annualised ROA and ROE rose to 2.5% and 14.6% respectively, though these numbers exclude the firm's motor finance business.
Despite recent volatility, analysts remain optimistic about Tata Capital's prospects. JM Financial has upgraded their rating to 'Buy' and increased their target price to ₹400 per share from ₹380, implying a 9% upside potential from the stock's previous closing price of ₹366.80. The upgrade is driven by strong growth prospects driven by retailization and expansion, with the company's robust Q4 performance further bolstering confidence in its medium-term earnings potential. Tata Capital, the financial services arm of the Tata Group, is classified as an NBFC and has been listed on exchanges since October 13, 2025, with a total market capitalisation of approximately ₹1,53,749 crore.
