ABOUT THE COMPANY
TATA CAPITAL LIMITED is a Non-Banking Financial Company within the TATA GROUP. The company offers a wide range of financing services like retail loans (personal loans, consumer durable, credit cards), vehicle and equipment loan, housing finance and specified financing. The lending business of the company constitutes 97.5% of the revenue and non-lending business constitutes 2.5%. The company has a loan book of 2.33 lakh crores as of June 2025. The company’s IPO in October 2025 marked a vital milestone, raising Rs 15,511 crores and achieving the market capitalization of Rs 1.35 lakhs crore. The fresh issue of 6,846 Crores will be utilised for the Incremental Capital Requirements for onward lending.
Quick peer context:
| Company Name | Market Capitalization | Return On Capital Employed | Return On Equity |
| Tata Capital | ₹ 134562.14 Crores | 9.58 % | 12.92 % |
| Bajaj Finance | ₹ 624860.15 Crores | 11.35 % | 19.22 % |
| Shriram Finance | ₹ 155026.46 Crores | 10.95 % | 15.57 % |
TATA CAPITAL market capitalization is close to its competitor’s valuation which shows that the investor’s are ranking Tata Capital as a high quality NBFC rather than a newly incorporated company. Company’s steadily growing profits and improving financing margins support the valuation and gives the hope for the same growth rate in the future.
Company’s ROCE and ROE are close to the industry standards, showing that the company may have the less valuation than the competitors but in the revenue maximization and cost reduction company stands equals to its competitors, which will help the company to compete easily in the long run and outperform its competitors.
Analysis of the Financial Statements
Revenue Growth Trend
The sales of the company have tripled in size in the last 5 years and grown by 56% in the past 1 year. Company has kept its employee costs nearly 10% of the total expenses which are near to the industry standards. The management is of the view to utilizing the fresh issue of Rs 6,846 crores for onwards loan lending which will help the revenue to expand and make better profits for its investors.
| March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 9,835 CRORES | 10,162 CRORES | 13,631 CRORES | 18,178 CRORES | 28,324 CRORES |
Profitability & Margin Analysis
Financing Margin of the company is less when compared to the competitors, which is due to the high other cost. Company’s financing margins are compressed but stabilizing but if the management master’s the art of cost reduction it would be great value for its investors. Keeping a keen eye on the company’s quarterly results is must for its investors to track company’s growth and make the best out of future opportunities.
| March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 18% | 23% | 29% | 26% | 19% |
Balance Sheet Strength
Total Assets of the company have shown a rapid expansion in the past 5 years, out of the total assets 91% of them are made up of loans and advances, which shows that the company management is good at deciding where they want to lock their capital for better profits in the future.
| March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 82,930 CRORES | 1,02,376 CRORES | 1,35,626 CRORES | 1,76,694 CRORES | 2,48,228 CRORES |
Debt Profile
Company’s borrowing has grown rapidly in the past few years these borrowings are used for providing loans and making interest as profit for the company. The company reports on a liquidity buffer of Rs 35,557 crore in its presentation which would help the company in its downturns.
Reserves and surplus of the company have been growing at a good phase and good sign for its investors.
| March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 6,509 CRORES | 8,250 CRORES | 13,833 CRORES | 19,714 CRORES | 29,429 CRORES |
Cash Flow Health
The Cash from Operating Activity has been negative throughout the years and the major reason for the same is the disbursement of loans and advances
Banks and NBFCs exist to lend money. So, when they grow aggressively, they are natural:
Increase assets (loans ➜ cash outflow)
Collect interest later (cash inflow over time)
So, in most lending companies:
🔹 CFO from operating activities may be negative during high growth phases, while
🔹 Net Profit remains positive.
This is not a red flag — it often indicates loan growth.
Comparative Data with Key Competitors (Bajaj Finance Ltd, Shriram Finance Ltd)
| Parameter | Tata Capital Limited | Bajaj Finance Ltd | Shriram Finance Ltd |
| Sales Growth (5-Yr CAGR) | 37% (Loan Book CAGR) | 26.8% YoY revenue growth | 19.5% YoY revenue growth |
| Financing Profit Margin | 19% (FY25) | 33% (FY25) | 30% (FY25) |
| Debt-to-Equity | Moderate, rising borrowings | Moderate, well diversified borrowings | Moderate borrowings, increased 27% |
Disclaimer: The article is for informational purposes only and not investment advice.