Tata Capital (TCL) reported audited consolidated results for the quarter and year ended 31 March 2026, with the board approving them on 23 April 2026. Consolidated assets under management, including the recently acquired motor finance business, rose to Rs2.77 tn, up 20 per cent year on year, and profit after tax for the quarter was Rs15.02 bn, up 43 per cent. Excluding motor finance, assets under management increased to Rs2.52 tn and profit after tax was Rs14.59 bn, reflecting growth across retail and SME franchises.

Net total income excluding motor finance grew 31 per cent year on year to Rs37.4 bn in the quarter, supported by higher net interest and fee income. Operating efficiency improved as the cost-to-income ratio fell to 36.1 per cent and annualised credit cost eased to 0.8 per cent. Annualised return on assets rose to 2.5 per cent, and annualised return on equity increased to 14.6 per cent.

Management reported that the AI-first strategy helped performance, with portfolio monitoring lowering credit cost by about 14 basis points in FY26 and the Intelligent Document Processing engine ingesting over 20 mn documents to improve origination and verification. Voice AI agents now originate 15 per cent of direct personal loan volumes and handle 90 per cent of welcome calls, while AI-driven credit assessments assist underwriting on 80 per cent of the SME portfolio. These initiatives supported a reduction in the cost-to-income ratio by approximately 335 basis points year on year.

The group highlighted total equity of Rs 446.58 bn and a capital adequacy ratio of 19.0 per cent as of 31 March 2026. Tata Capital Housing Finance, the wholly owned housing subsidiary, reported AUM of Rs866.53 bn and PAT of Rs5.27 bn with credit cost remaining low. The acquisition of Tata Motors Finance was completed on 8 May 2025, and the board noted resilient economic fundamentals alongside the need for continued vigilance amid geopolitical developments.