Focus on Tata Capital stock: HDFC Securities, a brokerage firm, has revised the target price to Rs 335 while preserving an “ADD” rating on Tata Capital. On April 2, Tata Capital released its Q4 results, reporting a 43% year-over-year increase in its consolidated net profit for the quarter that concluded on March 31, 2026, at Rs 1,502 crore as opposed to Rs 1,052 crore during the same period last year.
The brokerage’s bullish forecast is fueled by Q4 earnings that exceeded projections because of lower credit costs and robust AUM growth of about 28% year over year. The brokerage kept an add rating with a revised target price for the following additional reasons.
Focus on Tata Capital stock: Following Q4 results, brokerages issue a “Add” call
HDFC Securities said that the company’s Q4 earnings were somewhat higher than anticipated due to decreased loan expenses of 0.9%.
The SME and corporate segments spearheaded the company’s robust AUM growth of almost 28% year over year.
Tata Motors Finance Limited’s performance has improved thanks to a positive change in the product mix and a turnaround in profitability.
The company also emphasizes that cautious underwriting procedures support the asset quality’s continued strength.
Management recommendations of roughly 23–25% AUM CAGR and 17–18% ROE continue to be important metrics to track.
Stronger loan growth has led to an increase in earnings projections. The stock is worth 2.5 times its projected ABVPS for March 2028.
Emkay on Tata Capital
With a target price of Rs 390, brokerage firm Emkay likewise retains an ADD rating on the Tata stock, suggesting an upside potential of roughly 14.4%.
The company claims that Tata Capital’s outstanding Q4 FY26 performance was bolstered by lower credit costs, greater asset quality, and increased AUM growth.
One of the most important things to keep an eye on in the future is the possible effects of the Iran war.
It is anticipated that the company would continue to grow at a rate of about 23–25 percent, propelled by comprehensive offers, continuous geographic development, and high disbursements across product sectors.
Due to a greater emphasis on growing the share of higher-yield segments, margins are probably going to increase.
It is anticipated that the housing segment’s growth momentum would continue.
Given the promising growth outlook, earnings per share projections are probably going to increase by 8–9%.
Tata Capital’s 2026 Q4 results
On Thursday, April 23, non-bank lender Tata Capital announced a dividend for its stockholders together with its earnings for the quarter that ended on March 31, 2026. For the quarter that ended on March 31, 2026, the company’s consolidated net profit increased by 43% year over year to Rs 1,502 crore from Rs 1,052 crore in the same period last year and Rs 1,257 crore in the previous September quarter. The shareholders are responsible for the profit after tax (PAT).
The company’s operating revenue for the reporting quarter was Rs 8,160 crore, up 9% year over year from Rs 7,478 crore in the same quarter of the previous fiscal year.
The net interest income (NII) in the quarter under review stood at Rs 3,127 crore, a 28 per cent growth over Rs 2,438 crore posted by the company in the year-ago period.
Net assets under management (AUM) for the company increased 28% year over year from Rs 196,942 crore in Q4 FY25 to Rs 251,885 crore in the reporting quarter.
FAQs
1. What were Tata Capital’s Q4 FY26 results?
Tata Capital reported a 43% YoY rise in net profit to 1,502 crore for Q4 FY26, compared to 1,052 crore in the same period last year.
2. Why are brokerages bullish on Tata Capital stock?
Brokerages are positive due to strong AUM growth (28% YoY), lower credit costs, improved asset quality, and robust performance across SME and corporate segments.
3. What target price has HDFC Securities set for Tata Capital?
HDFC Securities has maintained an ‘ADD’ rating and revised the target price to 335.
4. What is Emkay’s view on Tata Capital stock?
Emkay has also given an ‘ADD’ rating with a higher target price of 390, indicating an upside potential of around 14%.
5. What drove Tata Capital’s strong Q4 performance?
Key drivers include lower loan losses (0.9%), strong disbursements, better product mix, and a turnaround in Tata Motors Finance Limited.
6. How much did Tata Capital’s AUM grow?
The company’s Assets Under Management (AUM) grew 28% YoY to ₹2,51,885 crore in Q4 FY26.
7. What are the future growth expectations for Tata Capital?
Management expects an AUM CAGR of 23–25% and a Return on Equity (ROE) of 17–18% going forward.
8. What is the outlook for Tata Capital’s margins and profitability?
Margins are expected to improve due to a higher share of high-yield segments, while EPS estimates may rise by 8–9%.
9. How did Tata Capital perform in terms of revenue and NII?
- Operating revenue: 8,160 crore (up 9% YoY)
- Net Interest Income (NII): 3,127 crore (up 28% YoY)
10. What risks could impact Tata Capital’s growth?
Potential global uncertainties, such as geopolitical tensions (e.g., the Iran conflict), may impact future performance.
