Revenue from operations in Q4FY26 stood at Rs 8,160 crore, up 9% against Rs 7,478 crore in the corresponding quarter of the last financial year.
The company’s board recommended a final dividend of Re 0.57 per equity share for the financial year ended March 31, 2026.
Tata Capital’s net interest income (NII) in Q4FY26 stood at Rs 3,127 crore, recording a 28% uptick over Rs 2,438 crore from the year-ago period.
Also read: Adani Energy Q4 Results: Cons profit rises 6% YoY to Rs 684 crore; revenue up 17%
The company’s net assets under management (AUM) in the quarter under review stood at Rs 2,51,885 crore, up 28% over Rs 1,96,942 crore in Q4FY25.
Tata Capital Q4 Results: Other key takeaways:
— Annualised operating expense on average net loan book was stable at 2.3% in Q4FY26 versus 2.3% in Q4FY25
— Cost-to-income ratio improved to 36.1% in Q4FY26 versus 37.8% in Q4FY25
— Annualised credit cost was 0.8% in Q4FY26 vs. 1.0% in Q3FY26
— Annualised ROA at 2.5% in Q4FY26 versus 2.1% in Q4FY25
— Annualised ROE at 14.6% in Q4FY26 versus 14.2% in Q4FY25
— Gross stage 3 stood at 1.5% as of March 31, 2026
— Net stage 3 stood at 0.5% as of March 31, 2026
— Provision coverage ratio stood at 65.1% as of March 31, 2026
The above numbers are excluding motor finance, the company filing said.
Including motor finance, the company’s AUM grew by 6% QoQ to Rs 2,77,275 crore as on March 31, 2026, from Rs 2,60,698 crore as on December 31, 2025.
PAT rose 16% QoQ to Rs 1,502 crore in Q4FY26 from Rs 1,290 crore in Q3FY26. Including such items, PAT was up 19% QoQ. The net total income went up 2% sequentially to Rs 4,146 crore in Q4FY26 from Rs 4,052 crore in Q3FY26.
Management commentary
Managing Director & CEO Rajiv Sabharwal said the company delivered a strong close to FY26, with sustained momentum and healthy growth across our businesses. “Asset quality continued to improve across segments, with both slippages and credit costs trending lower. The use of artificial intelligence remains a core strategic priority for the organisation. This year, our AI-first approach across the lending value chain delivered tangible results: Our portfolio monitoring platform has helped strengthen risk management and reduce our credit cost by ~14bps year-on-year in FY26,” Sabharwal said.
“Our Voice Hub is being used across sales, service and retention, with voice AI agents now originating 15% of Direct Personal Loan business and carrying out 90% of welcome calls. AI-driven credit assessments now assist underwriting for 80% of our SME portfolio – compressing decision cycles and lifting credit manager productivity by 30%. Our Intelligent Document Processing engine has ingested and processed over 2 crore documents, fundamentally transforming how we originate, verify and quality-control at scale, across our credit and operations functions. These developments have helped reduce our cost-income ratio by 335 bps year-on-year in FY26,” Sabharwal highlighted.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
