Motilal Oswal's research report on Tata Capital
Tata Capital (TCL) is among India’s leading diversified NBFCs, with an AUM of INR2.77t as of Mar’26. The company has delivered a robust ~29% AUM CAGR (excluding Motor Finance) over FY23-26, reflecting the strength of its franchise, diversified business model, and consistent execution. TCL’s loan portfolio is highly granular, with ~98% of accounts carrying ticket sizes below INR10m. Asset quality is supported by a predominantly secured lending book (~80% secured), while the portfolio is also well diversified, with no single product contributing more than 20% of total loans. We believe TCL is well-positioned to sustain a healthy AUM CAGR of ~23% over FY26-28E, along with a calibrated shift toward higher-yielding segments and continued investments in digital capabilities.
Outlook
We initiate coverage on TCL with a Neutral rating and a TP of INR390, based on 2.7x Mar’28E P/BV. A meaningful re-rating would likely require sustained improvement in RoA and RoE and continued expansion in higher-yielding retail lending segments.
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Tata Capital - 2906026 - moti