Tata Capital Ltd (Finance - AMC) — fundamental analysis, earnings data, and key metrics. PE: 30.7. ROE: 12.9%. This stock is not currently in the Nifty 500 momentum outperformers list.
Based on Q3 FY26 earnings • Updated Feb 22, 2026
What: 14 bps NIM expansion with 17 bps contribution from IPO proceeds enhancing margins
Impact: 14 bps margin impact
“NIM for Q3 at 6.6%, up 14 basis points versus Q2, including a 17 basis points contribution attributable to the proceeds from the IPO.”
What: Credit cost declined to 1.0% with lower slippages expected to improve Stage 3 metrics
Impact: 15 bps margin impact
“Credit cost for the quarter was 1% as compared to 1.1% in Q2 of FY '26. We witnessed lower slippages during Q3, including in the unsecured retail segment.”
What: ₹16,800 cr quarterly AUM growth on track for full-year guidance
Impact: 16.5% PAT impact
“Given the strong traction seen in Q3 in book growth and remaining conscious about the prepayment pressure, we are on track to meet our FI26 guidance of 18 to 20% AUM growth.”
Earnings deceleration risks from management commentary
Trigger: If growth doesn't resume in H1 FY27 as expected
Impact: -10 bps margin impact
Management view: The Motor Finance business is being reoriented, with AUM declining by 6% in Q3 but disbursements increasing by 17% over Q2. The business achieved breakeven in Q3 FY26, with growth expected to resume in the first half of FY27.
Monitor: Motor Finance AUM growth
Trigger: If competitive intensity increases further
Impact: -15 bps margin impact
Management view: During the quarter, while we benefited from lower cost of funds, significant portion of the easing was passed on to customers, keeping margins at stable levels.
Monitor: NIM trajectory
Key quotes from recent conference calls
“NIM for Q3 at 6.6%, up 14 basis points versus Q2, including a 17 basis points contribution attributable to the proceeds from the IPO. During the quarter, while we benefited from lower cost of funds, significant portion of the easing was passed on to customers, keeping margins at stable levels. — Management”
“We witnessed lower slippages during Q3, including in the unsecured retail segment and this improvement is expected to translate into a better Stage 3 metrics over the coming quarters. — Management”
“Given the strong traction seen in Q3 in book growth and remaining conscious about the prepayment pressure, we are on track to meet our FI26 guidance of 18 to 20% AUM growth. — Management”
“Our capital adequacy ratio stands at 20.3% comfortably above regulatory requirements supported by a healthy common equity tier 1 ratio. We have continued to re derisk the balance sheet with debt to equity ratio declining from... — Management”
Forward-looking targets from management for FY26
Revenue Growth Target
18%
Implied PAT Growth
18%
Credit Growth Target
18%
Key Milestones
• 18-20% AUM growth
• 33%-34% cost-to-income ratio by FY '28
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Tata Capital Ltd's latest quarterly results (Dec 2025) show
Tata Capital Ltd's current PE ratio is 30.7x.
Tata Capital Ltd's price-to-book ratio is 3.7x.
Tata Capital Ltd's fundamental strength based on key financial ratios
Tata Capital Ltd has a debt-to-equity ratio of N/A.
Tata Capital Ltd's return ratios over recent years
Tata Capital Ltd's operating cash flow is negative (FY2025).
Tata Capital Ltd currently does not pay a significant dividend (yield 0.00%).
Tata Capital Ltd's shareholding pattern (Dec 2025)
Tata Capital Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
Tata Capital Ltd has 3 key growth catalysts identified from recent earnings analysis
Tata Capital Ltd has 2 key risks worth monitoring
In Q3 FY26, Tata Capital Ltd's management highlighted
Tata Capital Ltd's management has provided the following forward guidance for FY26
Based on quantitative research signals, here is why Tata Capital Ltd may be worth studying
Tata Capital Ltd investment thesis summary:
Tata Capital Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
