Tata Capital shares have shown recent momentum, rising 3.38% from the previous close of ₹318.70 to trade at ₹329.45 in latest trading sessions. This represents a significant improvement from the stock's stagnant performance since its October 2025 listing, when it traded near ₹320 compared to its ₹326 issue price. The IPO raised ₹15,512 crore but only ₹6,846 crore was fresh capital for the company, with the rest being an offer for sale.
Tata Capital delivered robust financial results in FY26, with the company's total income growing 8.12% to ₹8,825.38 crore compared to ₹8,162.31 crore in the previous year. According to latest consolidated financials, profit after tax increased by 14.54% to ₹1,547.38 crore from ₹1,352.02 crore in FY25. The company's EBIT margin remained strong at 73.97% while net profit margin improved to 17.53% from 18.40% in the previous year. Basic EPS increased to ₹3.65 from ₹3.54 in FY25.
The company's cost structure shows interest expenses consuming 50.68% of operating revenues and employee costs accounting for 8.97% in FY26. As reported in the latest financials, total expenses grew 5.93% to ₹2,296.96 crore from ₹2,168.29 crore in the previous year. The company's EBIT grew 8.92% to ₹6,528.42 crore compared to ₹5,994.02 crore in FY25, demonstrating effective cost management despite increased operational activities.
According to Mint analysis, Tata Capital was priced at approximately 38 times trailing earnings and 4 times book value at listing, similar to Bajaj Finance's valuation. However, Bajaj Finance earns a significantly higher 18% return on equity compared to Tata Capital's 12%. The price-to-earnings ratio has compressed from 38 times at listing to approximately 25 times currently, while price-to-book has fallen from 4 times to around 3 times. The company operates as a diversified NBFC with the Tata group's flagship financial services arm, maintaining a AAA rating and lending across multiple categories to retail and small business borrowers.
